MD Senate Bill 147

Legislation

State: Maryland
Signed: May 11, 2004

Effective: October 01, 2004
Chapter: 253

Summary

Senate Bill 147 provides that an insurance producer may not act on behalf of an insurer unless the producer has received written documentation of the appointment from the insurer.

Affects

Amends Section 118 of Title 10 (Insurance) of the Annotated Code of Maryland.

Changes
  1. Affecting Maryland Notary Signing Agents, who must be “title insurance producers” before they can conduct loan closings, this new law requires a title insurance producer to obtain written documentation of appointment by an insurer before acting for that insurer. Prior law only required the insurance producer’s name to be listed in the insurer’s official producer register.
Analysis

In Maryland, Notaries wanting to conduct home loan signings must meet two additional requirements prescribed by the state’s Insurance Code: (1) Be licensed by the state as a “title insurance producer.” (A title insurance producer is defined as “a person that provides escrow, closing, or settlement services that may result in the issuance of a title insurance contract.” Licensure involves submitting an application [and $25 application fee], completing an approved course of study, fulfilling specified insurance-related work experience, passing an examination, paying an initial license fee of $54 and, for renewal licenses every 2 years, satisfy 16 hours of continuing education and pay a renewal license fee of $54.) (2) Obtain an “appointment” from an insurer. Applied to Notary Signing Agents, the new law requires NSAs to possess written documentation of appointment by an insurer prior to conducting loan signings, as opposed to merely being listed in an insurer’s producer register. (An insurer must maintain a “journal” of each producer who has been granted an appointment and within 30 days of appointment enter into the register the producer’s name, license number, date of appointment, and any additional information the insurer may include.)

Read Senate Bill 147.

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