On November 5, 2013, District of Columbia LB 268 went into effect. The law requires title insurance producers to purchase a surety bond of no less than $200,000. The text of the bill reads:
“(C) Each business entity with a title insurance producer license is required to obtain a surety bond in an amount not less than $200,000 executed by the applicant as principal and by an insurance company as surety or obligor. The Bond shall run to the District of Columbia government as the obligee and benefit the District or any other aggrieved party, including consumer and title insurers;
(D) Each individual with a title insurance producer license is required to obtain surety coverage in an amount not less than $200,000, either through a business entity where the individual is employed or otherwise covered, or through an individually issued bond;”
The text of the bill also revises the existing requirements for fidelity bonds.
“(E) Each business entity with a title insurance producer bond is required to obtain a fidelity bond or similar insurance policy in an amount not less than $200,000 that covers all employees and contractors. A sole proprietor with no employees or a limited liability entity with no employees shall be exempt from this requirement.”
To read the full text of District of Columbia LB 268, click here.
For more information on surety bonds in Washington DC or any other state, visit SuretyBonds.com. We’re available online 24/7 or or by phone at 1 (800) 308-4358 Monday through Friday between 7 a.m. and 7 p.m. CST.