Posted by bfd110_IN on 9/23/09 9:01am
Msg #304655

Indiana Notaries--- New Department of Insurance requirement

Does anyone know for sure if this is going to affect us or does it only affect the title companies? I know title companies are supposed to be inputting the information into state system on all purchases when a sales disclosure is filled out. The notification went to all TPL holders.

Reply by MW/VA on 9/23/09 9:26am
Msg #304663

I don't know about Indiana, but I've noticed that the ss I work for around the country are carrying $1M E & O policies. We are covered under that. I think MD TPL's are facing bond & insurance issues also under new regs.

Reply by PAW on 9/23/09 10:12am
Msg #304670

Caution: E&O coverage under SS/Title policy

>>> the ss I work for around the country are carrying $1M E & O policies. We are covered under that. <<<

Depending on how the SS/Title company's policy reads, will determine if sub-contractors, such as us, are covered. Not all companies carry policies that extend to contractors and other 3rd parties. If a company says you are covered under their policy, ask for a copy of the policy so stating. It may be your salvation if the need ever arises.

Reply by MW/VA on 9/23/09 10:13am
Msg #304672

Re: Caution: E&O coverage under SS/Title policy

Thanks, as always, Paul.

Reply by Teresa/FL on 9/23/09 10:26am
Msg #304675

Re: Caution: E&O coverage under SS/Title policy

Paul is correct.

I have been contacted by more than one SS to perform closings for Provident and asked to provide my E&O info to the TC because the SS does not have the coverage level Provident requires.

Most of the TCs I close for also require proof of E&O insurance as their policies do not cover sub-contractors.

Reply by MW/VA on 9/23/09 10:58am
Msg #304681

Re: Caution: E&O coverage under SS/Title policy

I have done signings for Provident through an ss & they said I was covered under their policy.
It's all about interpretation, isn't it.

Reply by bfd110_IN on 9/23/09 11:04am
Msg #304683

New law change doesnt reference E and O

Appears the state is wanting us to input borrowers information into state site effective January 1st. This to occur after each closing. It is the way the letter is written. I would assume it wouldn't fall to us but to title companies. But I am having a hard time getting any confirmation from my title companies because they dont know. This will definitely drive all non TPL closers out because your license number will be required either by me inputting it or the title company.

Reply by Sylvia_FL on 9/23/09 5:24pm
Msg #304729

Re: New law change doesnt reference E and O

Not an attorney yada yada, but I would think it is the title company that has to do it. The loan is not really closed until after the three day RTC and funds are disbursed.

Reply by Teresa/FL on 9/23/09 11:41am
Msg #304692

Re: Caution: E&O coverage under SS/Title policy

Most SS E&O policies are written to cover their sub-contractors and the coverage amount is adequate to cover the risk they are incurring. IMO, a SS should have at least $500K coverage.

In my experience, most TCs do not cover their sub-contractors but do cover their employees.

The SSs I was referring to did not have the required $500K level of coverage, so the TC required proof of my E&O coverage to satisfy the Provident requirement.

There is no interpretation need, the policy spells out who is and who is not covered. My policy is written under my business name and I am the only person covered, so I cannot sub-contract Provident closings to other notaries and extend my coverage to them.