Maryland Title Insurance Producer Bond

MarylandA new bill was enacted in Maryland concerning title insurance producers. The new bill is named SB 86 and boosts the quantity of the license bond required for title insurance producers from $100,000 to $150,000. The present law allows a letter of credit in place of the surety bond. The law was the initiative of the Maryland Insurance Administration and was thought to increase customer protection. As originally introduced, the surety bond quantity would have been amplified to $250,000. The SFAA cooperated with the AIA and its local advisors on concerns that the increase came with the potential to decrease the accessibility of the surety bond for some producers. The AIA was triumphant in having the increase reduced to $150,000. SB 86 also directs the Commission to study the title insurance business in Maryland, as well as the adequacy of the bonding requirements for individual producers. The new bill became active on October 1st, 2009.