Pennsylvania Title Insurance Agent Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Pennsylvania Title Insurance Agent bond.
*This page focuses exclusively on the surety bond required for title insurance agents operating in Pennsylvania. Title insurance agents that are licensed must also obtain a blanket Fidelity bond. Contact BondExchange to obtain a Fidelity bond.
At a Glance:
- Lowest Cost: $375 per year or $38 a month
- Bond Amount: $100,000
- Who Needs It: All title insurance agents operating in Pennsylvania
- Purpose: To protect the public from financial harm if the title insurance agent commits fraud or engages in unfair business practices
- Who Regulates Title Insurance Agents in Pennsylvania: The Pennsylvania Insurance Department
Background
Pennsylvania Legislature 682, Act 79 requires all title insurance agents operating in the state to obtain a license from the Insurance Department. The Pennsylvania General Assembly enacted the licensing requirement to ensure that title insurance agents do not engage in unethical business practices. To provide financial security for the enforcement of the licensing law, title insurance agents must purchase and maintain a surety bond to be eligible for licensure.
What Is the Purpose of the Pennsylvania Title Insurance Agent Bond?
Pennsylvania requires all title insurance agents 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 insurance agent fail to abide by the regulations outlined in the Pennsylvania Legislature 682, Act 79. Specifically, the bond protects claimants if the title insurance agent commits fraud or engages in unfair business practices. In short, the bond is a type of insurance that protects the public if the title insurance agent violates the terms of their license.
How Can an Insurance Agent Obtain a Pennsylvania Title Insurance Agent Bond?
BondExchange makes obtaining a Pennsylvania Title Insurance Agent bond easy. Simply log in to your account and use our keyword search to find the “title insurance agent” 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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Is a Credit Check Required for the Pennsylvania Title Insurance Agent Bond?
Surety companies will run a credit check on the title insurance agent to determine eligibility and pricing for the Pennsylvania Title Insurance Agent bond. Title insurance agents with excellent credit and work experience can expect to receive the best rates. Title insurance agents 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 Pennsylvania Title Insurance Agent Bond Cost?
The Pennsylvania Title Insurance Agent bond can cost between $375 to $6,000 per year or $38 to $600 a month. 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 $100,000 bond requirement.
$100,000 Pennsylvania Title Insurance Agent Bond Cost
| Credit Score* | Bond Cost (1 Year) | Bond Cost (1 month) |
|---|---|---|
| 720+ | $375 | $38 |
| 680 – 719 | $450 | $45 |
| 660 -679 | $700 | $70 |
| 649 – 659 | $1,000 | $100 |
| 629 – 648 | $1,500 | $150 |
| 600 – 628 | $2,500 | $250 |
| 580 – 599 | $3,500 | $350 |
| 550 – 579 | $4,000 | $400 |
| 525 – 549 | $5,000 | $500 |
| 500 – 525 | $6,000 | $600 |
*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 Pennsylvania Define “Title Insurance Agent”?
To paraphrase the title insurance agent definition from the Pennsylvania Legislature 682, Act 79, a title insurance agent is a third party hired by a title insurer to solicit, procure, and/or negotiate title insurance contracts on behalf of a title insurer. This also includes providing escrow, closing, or settlement services.
Exemptions to this definition include the following:
- Banks
- Trust companies
- Lending institutions
- Mortgage brokerages or mortgage guaranty companies
- Attorneys licensed to practice in the State of Pennsylvania
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 Insurance Agents Become Licensed in Pennsylvania?
Title insurance agents in Pennsylvania must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the Department’s Title Insurance webpage for details on the process.
License Period – Pennsylvania title insurance agent licenses must be renewed with the Insurance Department by June 30th each year.
Step 1 – Fulfill Financial Requirements
Title insurance agents must purchase and maintain a surety bond, as well as obtain an Errors and Omissions Policy and a blanket Fidelity bond (both must be in an amount acceptable to the title insurer appointing the title insurance agent).
Step 2 – Complete License Application
The Title Agent Application must be filled out and sent to the Pennsylvania Department, along with any other required documents (proof of insurance and other financial requirements) and the appropriate application fee ($55 – Resident or $110 – Non-Resident).
How Do Title Insurance Agents in Pennsylvania Renew Their Licenses?
Pennsylvania title insurance agent licenses must be renewed with the Insurance Department by June 30th each year. The renewal license application can be found here and a renewal fee applies.
What Are the Insurance Requirements for Title Insurance Agents in Pennsylvania?
Pennsylvania title insurance agents must purchase and maintain an Errors and Omissions policy. Coverage must be in an amount acceptable to the title insurer appointing the title insurance agent.
How Do Pennsylvania Title Insurance Agents File Their Bonds?
Title insurance agents should submit their completed bond forms, including the power of attorney when submitting their license applications to the Pennsylvania Insurance Department (see the mailing address listed below).
Pennsylvania Insurance Department
1326 Strawberry Square
Harrisburg, PA 17120
The surety bond requires signatures from the surety company, as well as the title insurance 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
What Can Pennsylvania Title Insurance Agents Do to Avoid a Claim Against Their Surety Bond?
To avoid claims against their bonds, title insurance agents in Pennsylvania must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Misrepresentation
- Unethical business practices
- Fraud
What Other Insurance Products Can Agents Offer Title Insurance Agents in Pennsylvania?
The Pennsylvania Insurance Department requires title insurance agents to purchase coverage for an 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 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 Insurance Agent Customers in Pennsylvania?
Pennsylvania conveniently provides a public database to search for active title insurance 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.
