Current through Register Vol. 43, No. 02, November 27, 2024
(1) All title
insurance commitments, policies and endorsements issued by a title insurance
agent and insuring an interest in real property situated in this state must be
issued and signed by a duly licensed and appointed title insurance agent. The
signature block shall contain the license number for the issuing agent and of
the signing agent.
(2) Business
Entity Agent. A business entity may be issued a title insurance agent license
in accordance with the following:
(a) To be
licensed as a title insurance agent, a business entity must be an Alabama
entity properly formed and existing under
Code of Ala.
1975, Tit. 10A and must have its principal place of business
physically located in this state. A sole proprietorship can only be licensed as
an individual title agent. One or more individuals doing business under a trade
name cannot obtain a business entity title agent license absent formal
organization as an entity.
(b) The
entity shall complete the Department's on-line licensing process to become
licensed as a title insurance agent.
(c) The entity must identify at least one
licensed individual title insurance agent designated as responsible for the
entity's compliance with all applicable laws, rules, and regulations, and
designated to act as signatory on title insurance commitments, policies and
endorsements issued by the business entity agent. The licensed individual title
insurance agent so designated must have such a degree of affiliation with the
entity in terms of an ownership interest in the entity, a role as an officer or
director, employment relationship, or otherwise as reasonably assures that the
licensed individual agent can cause or influence the entity's compliance with
all applicable laws, rules, and regulations, including but not limited to the
requirements set forth in paragraph (3) below.
(d) Business entity title insurance agents
must be appointed to act on behalf of a title insurer and must be appointed by
each title insurer it represents. A business entity is deemed to be
representing or acting on behalf of a title insurer upon entering into an
agency contract or agreement with the insurer. Each individual title insurance
agent acting on behalf of the business entity title agent must also be
appointed to represent the insurer.
(3) Individual Agent. An individual may be
issued a title insurance agent license in accordance with the following:
(a) The individual must be at least 19 years
of age.
(b) The individual must be
either:
1. An Alabama resident
citizen.
2. A non-Alabama resident
who is employed on a full-time basis by a duly licensed title insurance agent
whose principal place of business is physically located in this
state.
(c) The individual
shall complete the Department's on-line licensing process to become licensed as
a title insurance agent.
(d)
Individual title insurance agents must be appointed to act on behalf of a title
insurer and must be appointed by each insurer it
represents.
(4) Unless
exempt, an individual applicant must comply with the examination requirements
prior to making application for license as a title insurance agent.
(5) Instructions for the on-line licensing
process, as it may change from time to time, will be provided on the
Department's Web site.
(6) The
initial fees for an individual title insurance agent license are set by statute
and are listed on the Department's Web site.
(7) Subsequent changes in the name or address
of a title agent must be reported within 30 days thereof. While there is no
filing fee for reporting such changes, there is a penalty of $50 for the
failure to report the changes within 30 days. Instructions for the name and
address change process, as it may change from time to time, will be provided on
the Department's Web site.
(8)
(a) Individual and business entity title
insurance agents are subject to the license renewal process set forth in Rule
482-1-148-.08.
(b) If a title insurance agent license is not
renewed in accordance with Rule
482-1-148-.08, the license
expires and all title insurer appointments are canceled.
(c) Within twelve months of expiration, the
former licensee can reapply for a title insurance agent license without having
to retake the examination by following the instructions for the on-line license
reinstatement process, as it may change from time to time, as directed on the
Department's Web page. Upon receiving the reinstated license, the title agent
may again be appointed by insurers by following the on-line appointment
process.
(d) When former licensees
have been without a license for over twelve months, they must comply with any
applicable examination requirements before again applying for a title insurance
agent license.
(9) When a
title insurance agent's license is suspended or revoked, the former licensee
should contact the Legal Division of the Department to receive instructions
should the former licensee desire to again become licensed.
Author: Commissioner of Insurance
Statutory Authority:
Code of Ala.
1975, §§
27-5-4, et
seq., 27-25-8.