MD Senate Bill 86 | NNA
Law

MD Senate Bill 86

Notary Law Update: MD Senate Bill 86

State: Maryland

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.

Signed:  May 07, 2009

Effective:  June 01, 2009

Chapter: 361

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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