What Is a Virginia Title Insurance Settlement Agent Bond?
Title insurance settlement agents in Virginia have to register in the state, so that they are allowed to conduct business. A major requirement for your agent registration is to obtain a title agency bond.
The surety bond serves as an extra layer of protection for the state and consumers. It ensures you will follow all relevant Virginia laws. Through a bond claim harmed parties can seek a financial compensation in case you engage in fraudulent practices.
This surety bond is, in essence, a contract between three entities. Your title insurance settlement agent company is the principal. The Virginia State Corporation Commission is the obligee that requires the bond. The third party that provides your bond is the surety.
Frequently Asked Questions
Who has to get this bond?
If you to register as a settlement agent in Virginia and conduct settlements and closings, you have to undergo the procedure with the Bureau of Insurance at the State Corporation Commission. You should be already licensed as a title insurance agent in Virginia.
As a part of the registration, you need to provide a $200,000 surety bond which needs to be presented to the Bureau in the official bond form.
The bond guarantees you will comply with all relevant state legislation, such as Chapter 395 of the Virginia Code.
What is the surety bond’s cost?
Title insurance settlement agents in Virginia have to obtain a $200,000 surety bond prior to obtaining their state registration. This is the required bond amount, which is different from the bond premium. For applicants with stable finances, it is typically between 1% and 5% of the bond amount.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Virginia title insurance settlement agent bond||$200,000||$1,500-$3,000||$2,000-$5,000||$5,000-$10,000||$10,000-$20,000|
Your surety bond cost is determined on the basis of criteria such as your personal credit score, business finances, and any assets and liquidity. When you apply with a surety, it examines these factors to assess the risk associated with bonding you. If your overall profile is trustworthy, you can expect to pay a lower bond premium.
Is it possible to get bonded with bad credit?
Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants who struggle with low credit scores, tax liens, bankruptcies, and civil judgements. If you are facing financial issues, this may be the right bonding option for you.
The rates for bad credit bonds are slightly higher to compensate for the increased bonding risk. They are usually between 5% to 10%. Our partners are a number of A-rated, T-listed surety companies, which allows us to find you a great bonding rate.
How do I get this bond?
Would you like to learn more about the way bonding works? You can read through our How to Get Bonded page for an in-depth overview.
Have questions or need assistance with your application? You can call us at (877) 514-5146, and our bonding specialists will help you out.
How are bond claims handled for title insurance settlement agents?
Your surety bond protects consumers from potentially unlawful actions that you may undertake. They include not depositing funds in trust or escrow accounts, not settling closings, falsifying documents and other similar illegal activities. A harmed party can file a bond claim if they suffer damages as a result of such actions.
The claimant can seek a compensation up to the penal sum of your bond, which is $200,000. Initially, your surety will pay damages on proven claims. You need to reimburse it fully shortly afterwards. Thus, bond claims are to be avoided, as they are quite costly.