- October 27, 1997
- All Maryland Policy Issuing Agents
- Statement of Financial Condition
As you all know, every Policy Issuing Agency which has an appointment with the title insurer must file a Statement of Finical Condition, Article 48A of the Annotated Codes of Maryland reads as follows:
Statement of Financial Condition; on-site review - (1) For each title insurance agent and agency that has an appointment with a title insurer, the title insurer shall have on file a statement of financial condition of each title insurance agent and agency with an appointment with the title insurer, as of the end of the previous calendar year, setting forth an income statement of business done during the preceding year and a balance sheet showing the condition of its affairs as of December 31st preceding certified by the title insurance agent or agency as being a true and accurate representative of the title insurance agent's or agency's financial condition.
Additionally under Section (2)(i) each insurer shall, at least annually, conduct an on-site review of the underwriting, claims practices, escrows practices, blank policy inventory and processing operations. Other sections include:
Section (3)Requires a written report setting forth results of the on-site review ...
Section (4)If as a result of the examination, a title insurer has reasonable cause to believe that a title insurance agent or agency has failed to remit premiums or funds owed or that any other violation of the article has been committed, the title insurer shall report in writing the suspected violation to the Commissioner and submit a copy of the examination.
The penalties for NON-COMPLIANCE are SEVERE for all insurers and agents
Penalties - A title insurance agent or title insurance broker who willfully or knowingly violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not to exceed $50,000.00 or imprisonment not exceeding one (1) year or both.
We would appreciate receiving the Statements of Financial Conditions by no later than December 1, 1997. Please disregard this bulletin if you have already complied with this request. Should you have any questions, please do not hesitate to contact company counsel.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.