§ 10-121. Title insurance producers
West's Annotated Code of MarylandInsuranceEffective: October 1, 2022
Effective: October 1, 2022
MD Code, Insurance, § 10-121
§ 10-121. Title insurance producers
(b)(1) Except as provided in paragraph (2) of this subsection, only a licensed title insurance producer may exercise control over trust money.
(c) A person may not convert or misappropriate money received or held in escrow or trust while:
(d)(1) Each controlling person and each trust money controller shall hold a license to act as a title insurance producer and, if applicable, an appointment with a title insurer.
(3) When the application of a business entity for a license as a title insurance producer is submitted, the Commissioner shall investigate the character of each person identified as a controlling person and each person identified as a trust money controller in the entity authorization included with the application.
(e)(1) In addition to meeting any of the applicable requirements for a license to act as an insurance producer under this subtitle, a business entity applicant for a license as a title insurance producer shall file with the Commissioner:
(f)(1) The surety bond or letter of credit shall be for the benefit of any person that suffers a loss if the title insurance producer converts or misappropriates money received or held in escrow or trust while:
(g) The title insurance producer shall file the bond or letter of credit with the Commissioner:
(h)(1) Each bond or letter of credit shall remain in force until:
(i) Before the Commissioner renews the license of a title insurance producer, the title insurance producer shall submit satisfactory evidence of compliance with this section.
(j)(1) If a title insurance producer has been charged with a violation of this section or this article that could result in suspension or revocation of the license of the title insurance producer, the Commissioner may seek an immediate restraining order from a circuit court to prohibit the title insurance producer from providing title insurance, escrow, closing, or settlement services.
(k)(1)(i) Except as provided in paragraph (5) of this subsection, the title insurer shall during each calendar year conduct an annual review of the underwriting, claims, and escrow practices of each title insurance producer appointed by the insurer as a principal agent as designated in the title insurance agency contract between the insurer and the producer.
(iv) If the title insurance producer or agency does not maintain separate bank or trust accounts for each title insurer it represents, the title insurer shall verify that the funds held on its behalf are reasonably ascertainable from the books of account and records of the title insurance producer or agency.
(v) Subject to the requirement under paragraph (3) of this subsection to report suspected violations that the title insurer has reasonable cause to believe have occurred, if the title insurance producer or title agency holds an appointment with more than one title insurer, the title insurer may limit its review to files, separately held accounts, and written documentation relating to its title insurance policies.
(3) If, as a result of the annual review, a title insurer has reasonable cause to believe that a title insurance producer or agency has engaged in any of the prohibited activities set forth in § 10-126 of this subtitle, the title insurer shall report in writing the suspected violation to the Commissioner in the report prepared under paragraph (2) of this subsection in a form and format created by the Commissioner.
(l)(1) A title insurance producer shall notify any title insurer with whom the title insurance producer holds an appointment whenever a person licensed under this subtitle becomes employed by, or associated with, the title insurance producer.
(m)(1) A title insurance producer shall notify the Commissioner, and any insurer with whom the title insurance producer holds an appointment, if an individual licensed under this subtitle leaves the employment of or ends an association with the title insurance producer.
(n) Notwithstanding subsections (e) and (g) of this section, a title insurance producer independent contractor who provides escrow closing or settlement services that may result in the issuance of a title insurance contract for or on behalf of a title insurance producer is not required to file a blanket fidelity bond, blanket surety bond, or letter of credit with the Commissioner.
Credits
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1995, c. 635, § 2, eff. Oct. 1, 1997; Acts 1996, c. 206, §§ 2, 4, eff. Oct. 1, 1997; Acts 1996, c. 239, § 2, eff. Oct. 1, 1997; Acts 1997, c. 57, §§ 1, 2, eff. Oct. 1, 1997; Acts 1997, c. 70, § 1, eff. Oct. 1, 1997; Acts 1998, c. 431, § 1, eff. Oct. 1, 1998; Acts 2001, c. 209, § 1, eff. Oct. 1, 2001; Acts 2001, c. 731, § 1, eff. July 2, 2001; Acts 2002, c. 369, § 1, eff. Oct. 1, 2002; Acts 2004, c. 25, § 1, eff. April 13, 2004; Acts 2005, c. 25, § 1, eff. April 12, 2005; Acts 2006, c. 620, § 1, eff. Oct. 1, 2006; Acts 2009, c. 361, § 1, eff. June 1, 2009; Acts 2009, c. 361, § 2, eff. Oct. 1, 2009; Acts 2010, c. 740, § 1, eff. July 1, 2010; Acts 2014, c. 45, § 5; Acts 2017, c. 41, § 1, eff. Oct. 1, 2017; Acts 2021, c. 105, § 1, eff. Oct. 1, 2021; Acts 2022, c. 700, § 1, eff. Oct. 1, 2022; Acts 2022, c. 701, § 1, eff. Oct. 1, 2022.
MD Code, Insurance, § 10-121, MD INSURANCE § 10-121
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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