Posted by bowie_MD on 12/27/06 6:28pm
Msg #167901

maryland fidelity bond coverage

Have any of you MD nsa purchased a fidelity bond from Chesapeake Ins Agency or any other agency.
If so you I can fill you in on a new development.

Reply by Vanessa Davis on 12/27/06 7:01pm
Msg #167912

Ok...so what's the scoop???

Reply by bowie_MD on 12/27/06 7:10pm
Msg #167915

A large maryland TC that wanted to use me as IC was told by MIA that my fidelity bond was not good. That in fact the only way they can hire an IC is to add them to their bond. Problem is most TC bonds will not automatically cover IC.
Today I talked at lenght with Jean Biennamen, Director of Title Producer Licensing and she confirmed for me that the AG had recent ruled that this is the interpretation of the law.
She said letters will be going out to all TC explaining this and letters will be going to the insurers telling them to refund all premiums because the policies are no good.
I called Mike Tracy at Chesapeake and he had a stroke. not really. but obviously he is speechless at this point.

Reply by WDMD on 12/28/06 4:54am
Msg #167957

"Today I talked at lenght with Jean Biennamen, Director of Title Producer Licensing and she confirmed for me that the AG had recent ruled that this is the interpretation of the law.
She said letters will be going out to all TC explaining this and letters will be going to the insurers telling them to refund all premiums because the policies are no good.
I called Mike Tracy at Chesapeake and he had a stroke. not really. but obviously he is speechless at this point."

That is exactly why I stated earlier I dont believe anything anyone says on here or from an insurance agent. I want to hear it from the MIA if it pertains to title producers license or SOS if it's notary related. As soon as MIA releases information on this subject, then I will take the appropriate action.

Reply by bowie_MD on 12/27/06 7:04pm
Msg #167914

anyone know how to get in touch with Genkichan ?
she seems to be a Maryland authoritarian

Reply by KimmyMD on 12/28/06 9:42am
Msg #167975

To be honest, I hesitated purchasing the fidelity bond. I asked my insurance agent "Mike Tracy" to show me where the law states that I as an independant with no employee's once again pay for something else! He never got back to me, because its not clear. The insurance company stands to make booko bucks if we all go along. I feel frustrated that the cost contunuies to be passed along to the last part of the signing, but the most important part. We close the deal " Deal or no Deal"! I do like Mike Tracey, but what gives? I still get calls from out of state companies asking me to sign for $50.00-$75.00.

Thanks for the information Mike

Kimmy

Kim

Reply by Genkichan on 12/28/06 2:09pm
Msg #168016

"What gives" is that the MIA doesn't know what the he!! they are doing anymore. Earlier I posted a link to the following, and here it is again:

http://www.mdinsurance.state.md.us/jsp/news/Bulletins.jsp10?divisionName=Bulletins%5EProperty+%26+Casualty&pageName=/jsp/news/Bulletins.jsp10

Actually you can find this document right on the doggone homepage: http://www.mdinsurance.state.md.us/jsp/Mia.jsp10

Scroll down to the document called "Fidelity Bonds" dated September 28, 2006. I discussed this document at length with an 'expert" at the MIA licensing division in October for a good 30 minutes (I forget her name just now), and I was instructed that, just because a TC does not add me to their fidelity coverage, that does NOT exclude me from the requirement of filing a fidelity bond with the MIA, even if I don't have employees of my own. We argued around in circles over this, and I lost. I was a good girl, went out and purchased my #$&% fidelity bond, and filed it with the MIA.

Various people in the local industry have been fighting with the MIA over this for a while now. Back in late October when I was dutifully buying that doggone policy, Brad at Chesapeake told me that he knows the insurance is redundant for us, and he wouldn't be surprised if at some point in the next year this gets whole thing gets repealed. There are lots of people out there arguing against it. It now sounds like the pressure is mounting.

I will follow the law as currently written and interpreted and maintain my fidelity bond until if/when the Commissioner actually re-issues a formal opinion/interpretation in a new bulliten regarding that stupid law, and how it applies to TPLIC's, that he signed that went into effect on Oct. 1. What else can one do?

The fact that some major TC called the MIA and was told they cannot hire you, even if you have a fidelity bond, concerns me. Did you send your original fidelity cert. to the MIA? Last October, several major TCs were knocking on my door looking for proof of MY fidelity coverage, which I then provided. We all think/thought we were in compliance. The problem is that the new Oct. 1 law says that TCs are supposed to cover LTPICs under their fidelity policy. The law does NOT specify what should be done when the TC's policy can't/won't cover us. The Bulletin in the links above does not say either. It really only addresses the responsibilities of full-fledged title companies. I was just told that I would not be excluded from the requirement to file one when a TC doesn't cover me. Perhaps the mood at the MIA is shifting.

Maybe I'll give them a call and see what I am told about this. See if the info "jives" with what others have heard.

Reply by WDMD on 12/28/06 2:35pm
Msg #168025

Like you said, those links provided do not say that individuals are required to have fidelity coverage. I do not see any attorney general ruling posted on their site. It will be very interesting to see Maryland enforce this if in fact TC's will be required to cover LTPIC's. Only way they would catch someone is by accident or if a lawsuit was filed for some reason and they investigated the LTP.

Reply by Genkichan on 12/28/06 2:59pm
Msg #168028

That's right, and who gets investigated. You and me. And do we have fidelity coverage? At the moment, we better have it. Actually, I was also told in October that for TPL renewers, and those just getting their licensing now, we are all required to show proof of fidelity coverage to get our licenses. And, at the following link below, it says that you need two bonds in order to become a TPL:

http://www.mdinsurance.state.md.us/jsp/agentBroker/Licensing.jsp10#TitleInsurance

Scroll about half way down the page to the section on Title Insurance.

And if our fidelity bonds "aren't valid" as one other poster claims to have been told, then the MIA can take action against the insurance agent who sold us "invalid" policies. Or we can complain to the MIA about the sale of such. Not that I'm going to, but wouldn't that be ironic? The point is that the MIA got themselves into a big stinking mess over this, and now they are trying to find a way to wiggle out of it.

I called but no one is home at the MIA today. I'll try again next week. It's a wait-and-see for me...

Reply by WDMD on 12/28/06 3:08pm
Msg #168031

It is starting to appear as if Maryland is caving to certain special interest groups (read lawyers and in state title companies), trying to make the process so hard and confusing that the only way the state will be able to enforce the regs is to cut out the independent contractor. It would not surprise me at all.

Reply by KimmyMD on 12/28/06 6:15pm
Msg #168072

When I got my license this year, I applied for a fidelity Bond waiver. Mike Tracy helped me file it with my license and Suritey bond. Did'nt any of you do this?

Kimmy

Reply by Loretta Reed on 12/28/06 6:45pm
Msg #168080

Re: maryland fidelity bond coverage..I got the fidelity bond

I just passed the fee onto my clients (jacked my fee up $25) and got over it. I have it if I need it and if I don't, no big deal. They (the title companies) are pleased that I have the bond (per their request) and don't have a problem paying a higher fee for my closings. I have gained quite a few more closings because I bought it (to relieve their mind). I got my money back after tacking the $25 bucks onto my fee.

Reply by Genkichan on 12/29/06 10:26am
Msg #168227

Re: Sure I did that too...

And when I renewed my TPL in August, that waiver was still valid at the time. Come Oct. 1 and the fun was over. MIA informed me that if I had renewed my TPL after Oct. 1, that waiver would not have sufficed.

I'm sure you were licensed before Oct. 1, too...

Reply by bowie_MD on 1/1/07 2:32pm
Msg #168597

Yes I signed a waiver. Then a few days later he called me and said I had to have the fidelity bond.

Reply by bowie_MD on 1/1/07 2:30pm
Msg #168596

I agree, but what if TCs stop using ICs because they do not want to cover them.

Reply by bowie_MD on 1/1/07 2:28pm
Msg #168595

Yes I did send the MIA a copy of my fidelity bond. Jena B. had it in her hand when I was talking to her