Posted by Genkichan on 10/25/06 3:50pm
Msg #154950

Bad news for MD agents -- ref: Fidelity bonds

I spoke to the MIA earlier today, and confirmed with Chesapeake Insurance, that yes, indeed we all IC's need to be covered by a $100,000 fidelity bond, in addition to our surety bond for the same, in order to continue doing closings. Our title companies can choose to cover us themselves, or we can get our own fidelity bond so that we can continue working for as many clients as possible without having to track down proof of fidelity coverage from each one of them. Furthermore, TPLICs will no longer be able to renew their licenses without fidelity coverage.

Chesapeake just worked out a deal this week Monday for a fidelity bond that is a little cheaper (but not much) than the one offered to us through Worldwide, which some title co's have marketed to us over the past few weeks.

More money out the door...and who has agreed to increase our signing fees? Well, my rates just went up again.

gggrrrrrrrrrrrr....the frustration to do a little business in MD never ends!!!!!!

Reply by WDMD on 10/25/06 4:44pm
Msg #154973

When does this go in effect? I cannot find anything about it on the MIA site.

Reply by Genkichan on 10/25/06 8:27pm
Msg #155048

It already went into effect on Oct. 1. I read and re-read the documentation with the lady at MIA over the phone. I tried like everything to clarify that since I have no employees, I shouldn't need a fidelity bond. She insisted that if my title clients don't put me on their fidelity bond, that does not exempt me from needing to be covered by A fidelity bond. Believe me, I tried every which way to talk around this, to no avail.

Here is the bulletin that she pointed to me, and we went over together on the phone.

http://www.mdinsurance.state.md.us/documents/BulletinP&C06-18-TitleProducers.pdf

No where in the bulletin does it say clearly that we have to obtain our own fidelity bond. But she insisted that if those we work for aren't going to cover us, that in itself does not exempt us from the fidelity requirement. Call Chesapeake Insurance in Annapolis for coverage. They just worked out the best (haha if you can call it that) deal available to us in this situation.

My fees are going up. There's just no two ways about it. I can't afford another flippin' several hundred dollar premium on top of all my others, and not raise them. MD makes it so friggin hard for people to make a buck, and it's really pi**ing me off. I'm a democrat, and understand and value protecting the public, BUT THIS IS REDICULOUS!!!!! Our surety bonds should suffice!!!

ggrrrrrrrrrr!!!!!!!!!!!!