Florida HB 725 went into effect on October 1, 2012. The law revises surety bond requirements for Florida title insurance agents. Gov. Rick Scott had approved the bill on May 5, 2012.
The new law upholds the long-standing requirement that title agents file a Florida surety bond; however, the new language alters the entity designated as the bond’s obligee. Also known as the “payee,” the obligee is the entity that receives the bond’s protection. Title agents in Florida will no longer list the state’s Department of Financial Services as the obligee of their bonds. Instead, bond forms will now list an agent’s title insurance underwriter or team of underwriters. If a title agent works with more than one underwriter, each professional must be listed by name within the bond contract.
To comply with the change, title agents simply need to update their existing bond forms by getting a rider from their current surety bond company. The change was required to be made by October 1, 2012, so if you’re a title agent in Florida who has yet to update your bond form, contact your surety provider immediately.
The new law also requires that title agents provide proof of their current Florida surety bond to their appointing underwriter(s) each year to ensure that the agent is still in compliance with industry regulations. Finally, the new law states that if the surety bond is payable to multiple obligees, each underwriter listed on the bond must be notified
- if and when a claim is made against the surety bond
- if and when the bond is terminated
If you need to purchase a title agent bond in Florida or anywhere else, call SuretyBonds.com today at 1 (800) 308-4358 or submit a free bond quote to speak with an expert surety specialist. Because HB 725 has already gone into effect, it’s in your best interest to get bonded as soon as possible to remain in compliance with the laws of the state of Florida. SuretyBonds.com has a history of helping customers get bonded inexpensively in just 24 hours.
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