Title Agent ($35,000) Bond - Statewide in Florida

Brief Summary

Read the name on the bond before you buy it. Florida does not require an individual licensed title insurance agent to post a $35,000 bond. F.S. 626.8419 imposes the $35,000 surety bond on the title insurance agency as a condition of being appointed by a title insurer, and it is made payable to the appointing title insurer or insurers, not to the State of Florida. Two more instruments come with that appointment, a fidelity bond of at least $50,000 and errors and omissions insurance of at least $250,000 per claim. If you are the licensed agent rather than the agency, the filing belongs to the agency you work for.

Under F.S. 626.8419, before a Florida title insurer appoints a title insurance agency, the insurer certifies to the Department of Financial Services that the agency has obtained a surety bond of at least $35,000 made payable to the appointing title insurer or insurers, a fidelity bond of at least $50,000, and errors and omissions insurance of at least $250,000 per claim with a deductible no greater than $10,000. Individual title insurance agents are licensed and appointed under other sections and are not the principal on this bond.

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How to Apply for a Title Agent ($35,000) Bond:

• Confirm whether the filing belongs to the agency, since the $35,000 bond is an agency appointment requirement rather than an individual agent requirement
• Obtain a surety bond of at least $35,000 made payable to the title insurer or title insurers appointing the agency
• Name every appointing insurer and include the clause requiring notice to each if a claim is made or the bond is terminated
• Obtain a fidelity bond of at least $50,000 acceptable to the appointing insurer
• Obtain errors and omissions insurance of at least $250,000 per claim and an aggregate limit, with a deductible no greater than $10,000
• Do not accept a bond provided directly or indirectly by a title insurer, which the statute prohibits
• Hold the title insurance agency license through MyProfile and designate a licensed title agent or Florida Bar attorney as agent in charge
• Have the appointing insurer file the appointment application with the Department of Financial Services
• Provide written proof annually to each appointing insurer that the bond remains in effect and unimpaired
• Pay the $200 administrative surcharge by the end of January and submit annual title insurance data by May 31

Detailed Information About the Florida Title Agent ($35,000) Bond:

Agent versus agency

Florida licenses title insurance agents individually under F.S. 626.8417 and licenses title insurance agencies separately, with the agency application requirements in F.S. 626.8418. The bond sits in 626.8419, which is the agency appointment section. Nothing in 626.8418 sets a bond amount for the license, and the individual agent statute does not impose a $35,000 bond either. So the practical question is whether you are placing this for an agency being appointed by an insurer, or for a person holding an agent license. It is the agency.

The three instruments at appointment

• Surety bond of at least $35,000 made payable to the title insurer or title insurers appointing the agency
• Fidelity bond of at least $50,000, acceptable to the appointing insurer
• Errors and omissions insurance acceptable to the appointing insurer, at least $250,000 per claim and an aggregate limit, with a deductible no greater than $10,000

If a fidelity bond or errors and omissions coverage is unavailable generally, the department is directed to adopt rules for alternative methods of compliance. The $35,000 figure is a minimum, since the statute says at least that amount and the appointing insurer decides what it will accept.

What the bond covers

It is for the benefit of any appointing title insurer damaged by a violation by the agency of its contract with that insurer. Where the bond is payable to multiple title insurers, it must provide that each insurer is notified if a claim is made on the bond or the bond is terminated. Check the form for that notice language before adding a second appointing insurer.

Two clauses that drive the annual paperwork

The bond must remain in effect and unimpaired as long as the agency is appointed by a title insurer, and the agency must give each appointing insurer written proof on an annual basis that the bond is still in effect and unimpaired. A claim that erodes the penal sum has to be restored, not left short.

A title insurer may not provide the surety bond directly or indirectly on behalf of the agency. The protected party cannot fund the protection.

The exemption, and where it stops

F.S. 626.8417 exempts title insurers acting through designated corporate officers, and attorneys duly admitted to practice in Florida and in good standing with The Florida Bar, from the chapter's title insurance licensing provisions. The limit is what matters here. If an attorney owns a title insurance agency that operates separately from the law practice, the agency must be licensed and appointed as a title insurance agent, which brings the bond and the insurance requirements with it. Section 626.8419 also states that it does not exempt title insurance agents from the appointment requirements of part I.

Prerequisites that do not replace the bond

Agent licensure requires a 40 hour title insurance course including 3 hours of ethics completed within the preceding 4 years, or 12 months of supervised experience, plus the required examinations, with prelicensure coursework waived for members of the armed forces, veterans and their spouses. That is licensure, not financial security.

Ongoing obligations

The Department of Financial Services requires the agency license through MyProfile, a licensed title agent or Florida Bar attorney designated as agent in charge, and appointment by a title insurer before transacting business. A $200 administrative surcharge is due by the end of January every year, and annual title insurance data is submitted by May 31.

Eligibility and Requirements for a Florida Title Agent ($35,000) Bond:

• Surety bond of at least $35,000, a statutory minimum rather than a fixed figure
• The appointing title insurer or insurers as obligee, not the State of Florida
• Bond for the benefit of any appointing insurer damaged by the agency violating its contract
• Notice to each named insurer on a claim or termination
• Bond in effect and unimpaired for as long as any appointment is held
• Agency name on the bond matching the licensed agency name exactly
• Owner credit review, which shapes the rate rather than eligibility for most applicants at this bond size

Florida Title Agent ($35,000) Bond FAQs:

Official and Additional Resources for the Florida Title Agent ($35,000) Bond: