Nevada Title Agent or Title Insurer Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Nevada Title Agent or Title Insurer bond.

At a Glance:

• Lowest Cost: $150 per year or $15 a month
• Bond Amount: Determined on a case-by-case basis (more on this later)
• Who Needs It: All title agents and title insurers operating in Nevada
• Purpose: To protect the public from financial harm if the title agent or title insurer commits fraud or engages in unfair business practices
• Who Regulates Title Agents/Title Insurers in Nevada: The Nevada Department of Business and Industry, Division of Insurance

Background

Nevada Revised Statute 692A.100 requires all title agents and title insurers operating in the state to obtain a license from the Department of Business and Industry, Division of Insurance. The Nevada Legislature enacted the licensing requirement to ensure that title agents and title insurers do not engage in unethical business practices. To provide financial security for the enforcement of the licensing law, title agents and title insurers must purchase and maintain a surety bond to be eligible for licensure.

What Is the Purpose of the Nevada Title Agent/Title Insurer Bond?

Nevada requires all title agents and title insurers to purchase a surety bond as part of the application process to obtain a license. The bond ensures that restitution is available to any damaged party should the title agent or title insurer fail to abide by the regulations outlined in the Nevada Revised Statutes Chapter 692A. Specifically, the bond protects claimants if the title agent or title insurer commits fraud or engages in unfair business practices. In short, the bond is a type of insurance that protects the public if the title agent or title insurer violates the terms of their license.

How Can an Insurance Agent Obtain a Nevada Title Agent/Title Insurer Bond?

BondExchange makes obtaining a Nevada Title Agent/Title Insurer bond easy. Simply log in to your account and use our keyword search to find the “title agent or title insurer” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (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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How Is the Bond Amount Determined?

According to Nevada Revised Statute 692A.1041, the Title Agent/Title Insurer bond amount must be no less than $20,000 or 2% of the average collected balance of the trust or escrow account maintained by the licensee—whichever is greater but no more than $250,000.

Is a Credit Check Required for the Nevada Title Agent/Title Insurer Bond?

Surety companies will run a credit check on the title agent or title insurer to determine eligibility and pricing for the Nevada Title Agent/Title Insurer bond. Title agents and title insurers with excellent credit and work experience can expect to receive the best rates. Title agents and title insurers with poor credit may be declined by some surety companies or have to 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 Nevada Title Agent/Title Insurer Bond Cost?

The Nevada Title Agent/Title Insurer bond can cost between 0.5% to 5% of the bond amount per year.  Monthly subscription options are also available. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below briefly references the approximate bond cost on the $20,000 requirement.

$20,000 Nevada Title Agent/Title Insurer Bond Cost

*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 Nevada Define “Title Agent or Title Insurer”?

To paraphrase Nevada Revised Statutes 692A.060 and 692A.070, a title agent is an individual or business appointed by a title insurer to solicit applications for insurance and negotiate title insurance contracts on behalf of the title insurer. While a title insurer is a company that provides actual title insurance to customers.

Exemptions to this definition include the following:

• Any person licensed to practice law in Nevada
• Banks, savings and loan associations, credit unions, and industrial loan companies
• Real estate companies (includes brokers and salespersons)
• Certified public accountants
• State and federal chartered non-depository financial institutions
• Mortgage brokers, lenders, and companies
• Any receiver, trustee, executor, administrator, or guardian that is under the supervision of a state or federal court

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 and Title Insurers Become Licensed in Nevada?

Title agents and title insurers in Nevada must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the Division’s Title and Escrow webpage for details on the process.

License Period – Nevada title agent and title insurer licenses must be renewed with the Department of Business and Industry, Division of Insurance by July 1st of each year.

Step 1 – Purchase a Surety Bond

All title agents and title insurers operating within the State of Nevada must purchase and maintain a surety bond.

Step 2 – Fulfill Following Requirements

Along with a completed Individual Producer License/Registration or Uniform Application for Business Entity (must be downloaded from the Division’s website), the requirements listed below must be satisfied and attached to your submission.

• Copy of the Executed Underwriting or Agency Agreement between the agency and each title insurer that appoints it. This agreement must show the limit of liability with the underwriting title insurer and agency deductible
• Copy of the Agency Financial Statement for the most recently completed fiscal year or pro forma statement for the first year if a new business
• Letter from the title insurer authorizing the use of those fees charged by the title insurer and a copy of the Title Fee Schedules that will be used by the title agency
• A description of the source of records to be used by the title agency when conducting a title search. The description must show that the agency has the ability to conduct a reasonable title search as required by statute. List the Nevada counties in which the agency will do business
• An applicant for a title agent license must provide proof that they have at least one year of recent experience relating to title insurance of a nature sufficient to allow the applicant to fulfill the responsibilities of a title agent.
• $185 licensing fee

How Do Title Agents and Title Insurers in Nevada Renew Their Licenses?

Nevada title agent and title insurer licenses must be renewed with the Department of Business and Industry, Division of Insurance by July 1st of each year. 

What Are the Insurance Requirements for Title Agents and Title Insurers in Nevada?

Nevada does not require title agents or title insurers to purchase any form of liability insurance as a prerequisite to obtaining a license. Title agents and title insurers must purchase and maintain a surety bond.

How Do Nevada Title Agents/Title Insurers File Their Bonds?

Title agents and title insurers should submit their completed bond forms, including the power of attorney when submitting their license applications to the Nevada Department of Business and Industry, Division of Insurance (see the mailing address listed below).

            Department of Business and Industry
            Division of Insurance
            1818 E. College Pkwy., Suite 103
            Carson City, NV89706

The surety bond requires signatures from the surety company, as well as the title agent or title insurer. 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

What Can Nevada Title Agents and Title Insurers Do to Avoid a Claim Against Their Surety Bond?

To avoid claims against their bonds, title agents and title insurers in Nevada must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:

•  Negligence
• Unethical business practices
• Fraud

What Other Insurance Products Can Agents Offer Title Agents and Title Insurers in Nevada?

Most reputable title agents and title insurers will purchase business liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of 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 Title Agent and Title Insurer Customers in Nevada?

Nevada conveniently provides a public database to search for active title agents and title insurers 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.