Section 40. Insurance and bonding requirements

A. At the time of registration, every settlement agent other than a title insurance company shall file a certification on a form prescribed by the bureau, that the settlement agent has, and thereafter shall keep in force for as long as they are acting as a settlement agent, the following:

1. An errors and omissions insurance policy providing limits of at least $250,000 per occurrence or per claim and issued by an insurer authorized to do business in the Commonwealth of Virginia. A deductible is permitted but shall not hinder or delay the payment of a claim.

2. A blanket fidelity bond or employee dishonesty insurance policy covering persons employed by the settlement agent providing limits of at least $100,000 per occurrence or per claim and issued by an insurer authorized to do business in the Commonwealth of Virginia. Settlement agents that have no employees except the owners, partners, shareholders, or members may apply for a waiver of this requirement on their certification form.

B. Every settlement agent other than a title insurance company shall file an original surety bond in an amount not less than $200,000 on a form prescribed by the bureau at the time of application for registration and, if such bond is canceled, at the time a replacement bond is issued.

Historical Notes

Derived from Volume 13, Issue 25, eff. September 15, 1997; amended, Virginia Register Volume 18, Issue 21, eff. June 3, 2002; Volume 24, Issue 26, eff. August 29, 2008; Volume 26, Issue 11, eff. January 25, 2010; Volume 32, Issue 22, eff. July 1, 2016.

Statutory Authority

§§ 12.1-13 and 55-525.28 of the Code of Virginia.