Posted by Dave Bullock on 6/7/10 10:04pm
Msg #340159

news for Md. folks about surety bond

I spoke to Corey Walker at the Md. ins. comm, title producer dept.
410-468-2382
fax--410-468-2399

reference: md bill 1470,chapter 740, bulletin 10-18. This was dated 6-4-10.
She advised me, that by including the aff of title ins prod independent contractor, with our renewal application, we will be relieved of need for surety bond.

follows: the aff


AFFIDAVIT OF TITLE INSURANCE PRODUCER APPLICANT:
TITLE INSURANCE PRODUCER INDEPENDENT CONTRACTOR
I, ________________________________, solemnly affirm under the penalties of perjury and upon personal knowledge that the contents of this affidavit are true.
I am an applicant for or currently hold a title insurance producer license. I hereby affirm that I will be acting solely as a title insurance producer independent contractor.
This means, I am:
•
Licensed, or am applying, to act as a title insurance producer;
•
Providing escrow, closing, or settlement services that may result in the issuance of a title insurance contract as an independent contractor for, or on behalf of, a licensed and appointed title insurance producer;
•
Not an employee of the licensed and appointed title insurance producer;
•
Covered or will be covered under the licensed and appointed title insurance producer’s blanket fidelity bond and blanket surety bond or letter of credit prior to providing the above-described services; and
•
Appointed or will be appointed by the title insurer.
Consequently, I acknowledge that, based upon my representations above, I am not required to file a blanket fidelity bond and blanket surety bond or letter or credit with the Commissioner.
I understand that if my status changes and I am no longer acting solely as a TIPIC but instead acting in whole or in part as a title insurance producer, I must notify the Commissioner and file the required blanket fidelity bond and blanket surety bond or letter of credit at least ten (10) working days prior to my change in status.
I acknowledge that failure to notify the Commissioner and obtain the required bonds or letter of credit within 10 working days may result in sanctions against my title insurance producer license pursuant to the Insurance Article, including, but not limited to, the revocation or suspension of the producer license.
_____________________________
Applicant

Reply by Linda_H/FL on 6/8/10 7:27am
Msg #340171

"Covered or will be covered under the licensed and appointed title insurance producer’s blanket fidelity bond and blanket surety bond or letter of credit prior to providing the above-described services"

So you're going to have to check with each company you work with to be sure they're covering you under THEIR bond? And you're swearing to it, so you're going to need to do that, or only work with those companies that agree to cover you.

As an independent contractor, I'm not sure how many companies will cover you under their bonds - as an IC it could be their contention it's on you to provide the required coverage...

I'd be very careful in signing this Affidavit and providing it to my state agency...

Not in MD but just a thought...

Reply by BossLadyMD on 6/8/10 10:27pm
Msg #340290

I called last month over a 3 day period and I was advised that I can still maintain my own surety bond. I agree with Linda, in that, a lot of companies may be leery of covering us under their bond. If you are not an 'employee', why would they want to?

I have no intention of signing such an affidavit as I will maintain my own surety bond. I'm just not so sure how much protection you would be afforded under their bond and if you are considered 'independent'....JMHO