MD Senate Bill 86

Law

State: Maryland
Signed: May 07, 2009

Effective: June 01, 2009
Chapter: 361

Summary

Senate Bill 86 raises the fidelity bond and the blanket surety bond or letter of credit of a title insurance producer to $150,000 (previously $100,000) for all licenses issued or renewed on or after October 1, 2009.

Affects

Amends Annotated Code of Maryland, Insurance, Article 10, Section 10-121

Changes
  1. Raises the fidelity bond and blanket surety bond or letter of credit of a title insurance producer from $100,000 to $150,000.
  2. Clarifies that, with certain exceptions, only a licensed insurance producer may exercise control over trust money paid or deposited in connection with the provision of escrow, closing or real estate settlement services.
  3. Makes technical changes.
Analysis

In Maryland, to be a Notary Signing Agent, one must acquire a license as a title insurance producer. Licensure requires mandatory education and an examination, continuing education and posting a fidelity bond and blanket surety bond or letter of credit. Senate Bill 86 raises the amount of these two bonds from $100,000 to $150,000. An earlier amendment to the bill was defeated which would have raised these bonds to $250,000. According to NNA Notary of the Year Elaine Wright, who is a title insurance producer, a title insurance producer who is an independent contractor is not required to post the fidelity bond, since this bond covers the employees and independent contractors of a title insurance producer. However, Ms. Wright informs the NNA that the cost of the surety bond is borne by the title insurance producer. Currently, the $100,000 surety bond costs $325 a year to maintain. It is unknown at this time how much the new $150,000 surety bond will cost.

Read the bill text.

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