Florida Title Agent Bond: A Comprehensive Guide
This guide provides information for insurance agents to help customers obtain a Florida Title Agent bond.
*This page focuses exclusively on the $35,000 license bond required for title agents operating in Florida. Title agents that are licensed as a business entity must also obtain a $50,000 Fidelity bond or similar insurance coverage. Contact BondExchange to obtain a Fidelity bond.
At a Glance:
- Lowest Cost: $132 per year or $14 per month
- Bond Amount: $35,000
- Who Needs It: All title agents operating in Florida
- Purpose: To ensure the public receives compensation for financial harm if the title agent fails to comply with licensing laws
- Who Regulates Title Agents in Florida: The Florida Department of Insurance Services
Background
Florida Statute 626.8412 requires all title agents operating under the employment of a title insurer in the state to obtain a license from the Department of Insurance Services. The Florida legislature enacted the licensing requirement to ensure title agents do not engage in unethical business practices. To provide financial security for enforcing licensing laws, title agents must purchase and maintain a $35,000 surety bond to be eligible for licensure.
What Is the Purpose of a Florida Title Agent Bond?
Florida requires title agents to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that restitution is available to any damaged party (i.e. the title agent’s employer) should the title agent fail to abide by the regulations outlined in Florida Statute 626.8419. Specifically, the bond protects the title insurer that employs the title agent if the licensee commits a breach of contract. In short, the bond is a type of insurance that protects the public if the title agent violates the terms of their license.
How Can an Insurance Agent Obtain a Florida Title Agent Bond?
BondExchange makes obtaining a Florida Title Agent bond easy. Simply log in to your account and use our keyword search to find the “title agent” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Florida Title Agent Bond?
Surety companies will run a credit check on the title agent business to determine eligibility and pricing for the Florida Title Agent bond. Title agents with excellent credit and work experience can expect to receive the best rates. While title agents with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Florida Title Agent Bond Cost?
The Florida Title Agent bond can cost between $132 to $2,100 per year or $14 to $210 per month. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $35,000 bond requirement.
$35,000 Florida Title Agent Bond Cost
| Credit Score* | Bond Cost (1 Year) | Bond Cost (1 month) |
|---|---|---|
| 720+ | $132 | $14 |
| 680 – 719 | $210 | $21 |
| 660 – 679 | $245 | $25 |
| 649 – 659 | $350 | $35 |
| 629 – 648 | $525 | $53 |
| 600 – 628 | $875 | $88 |
| 580 – 599 | $1,225 | $123 |
| 550 – 579 | $1,400 | $140 |
| 525 – 549 | $1,750 | $175 |
| 500 – 524 | $2,100 | $210 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
How Does Florida Define “Title Agent”?
To paraphrase Florida Statute 626.841, a title agent (sometimes referred to as a title insurance agent) is a person appointed by a title insurer to determine the insurability of a prospective client, as well as issue and countersign title insurance policies on their behalf.
Exemptions to this definition include:
- Licensed title insurers operating in Florida
- Corporate officers employed by the title insurer to occasionally issue and countersign binders, commitments, and policies of title insurance
- Attorneys licensed to practice law and who remain in good standing with the Florida Bar
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Title Agents Apply for a License in Florida?
Title agents must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the Department of Insurance Service’s Agent and Adjusters webpage for specific details on the process.
License Period – The Florida title agent license is valid for two years from the date of issuance and must be renewed before the expiration date.
Step 1 – Pass the Exam
Florida title agents must pass an exam as a prerequisite to licensure. To schedule an examination, applicants must contact Pearson VUE. Continuing education requirements can be found here.
Step 2 – Purchase a Surety Bond
Title agents must purchase and maintain a $35,000 surety bond.
Step 3 – Purchase Insurance
Title agents are required to obtain a $250,000 Errors and Omissions policy. A $50,000 Fidelity bond is also mandated.
Step 4 – Complete the Application
Applications for a title agent license must be completed through the Florida Department of Financial Services Online Portal. Along with the application, the following requirements must be attached:
- Fingerprinting information
- Exam information
- Criminal history
- Proof of surety bond and other insurance requirements
- Appointment fee of $60
- License filing fee of $10
How Do Florida Title Agents Renew Their License?
Title agents can renew their licenses online through the Florida Department of Financial Services Online Portal. The title agent license is valid for two years from the date of issuance and must be renewed before the expiration date. A renewal fee of $60 is required.
What Are the Insurance Requirements for Title Agents in Florida?
According to Florida Statute 626.8419, title agents are required to obtain E&O coverage in the amount of $250,000 per claim and an aggregate limit with a deductible no greater than $10,000. A $50,000 Fidelity bond is also required.
How Do Florida Title Agents File Their Bonds?
Title agents should submit a copy of their completed bond forms, including the power of attorney, electronically when submitting their license applications to the Florida Department of Financial Services Online Portal. The surety bond requires signatures from the surety company, as well as the title agent. The surety company should include the following information on the bond form:
- The legal name of the individual buying the bond
- Surety company’s name
- Date the bond is signed
Proof of the surety bond must also be submitted to the employer of the title agent.
What Can Florida Title Agents Do to Avoid a Claim Against Their Surety Bond?
The best way to avoid a bond claim as a title agent is to simply comply with state license laws and abide by all contractual obligations. Should the title agent commit a breach of contract that leads to financial damages to the employer, the title insurer has the legal right to file an official bond claim.
What Other Insurance Products Can Agents Offer Title Agents in Florida?
The Florida Department of Financial Services requires title agents to purchase a $500,000 Errors and Omissions policy, which is just another name for professional liability insurance. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Florida Title Agent Customers?
Florida conveniently provides a public database to search for active title agents in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
