Posted by Genkichan on 1/16/07 1:05pm
Msg #171095

MD fidelity bond update

Great News! I just spoke with Jean Biennamen, Director of Producer Licensing at the MIA about the fidelity bonds for LTPICs. She specifically stated that the MIA AG's office has issued an opinion that ICs do NOT need reverse fidelity coverage to operate in MD. The interpretation of the Oct. 1 law is that all nationwide title agencies are required to put ICs on their own fidelity coverages. If they don't, then the title agency who hires us will absorb any associated risk with hiring us as ICs if they are ever involved in a lawsuit. Our surety bond covers the public; the fidelity is/was to protect the title companies from our actions as ICs. It's up to them to protect themselves.

She expects a draft revised Bulletin (i.e. the Sept. 28, 2006 notice) to be on her desk shortly, and the MIA will be formally issuing a clarification in the near future. She told me that the MIA will also be trying to contact everyone out there who may have purchased and filed an unnecesary (reverse) fidelity bond in the near future. Remember, this applies to all IC's who have NO employees of their own. She told me I was safe to go ahead and cancel my fidelity bond, effective immediately, and try to get as much of my premium refunded as possible.

The MIA is also trying to work with insurers who issued these policies to encourge them to offer us FULL refunds of our premiums, but cannot guarantee that the MIA will be successful. In short, the sooner you cancel the darn thing, the more money you are guaranteed to get back. If you want clarification for yourself, please feel free to call Jean (800-492-6116 is the main line, and you can be asked to be transferred to her). As for me, I'm gettin' my dough back ASAP!!! wooohoooo!!!!