§ 55-525.20. (Effective October 1, 2010) Duties of settlement agents.
A. A settlement agent shall exercise reasonable care and comply with allapplicable requirements of this chapter and its licensing authority regardinglicensing, financial responsibility, errors and omissions or malpracticeinsurance policies, fidelity bonds, employee dishonesty insurance policies,audits, escrow account analyses and record retention.
B. A settlement agent who is not (i) a person described in subdivision A 5 of§ 55-525.19 or (ii) a title insurance company as defined in § 38.2-4601 shallmaintain the following to the satisfaction of the appropriate licensingauthority:
1. An errors and omissions or malpractice insurance policy providing aminimum of $250,000 in coverage;
2. A blanket fidelity bond or employee dishonesty insurance policy coveringpersons employed by the settlement agent providing a minimum of $100,000 incoverage. When the settlement agent has no employees except the owners,partners, shareholders or members, the settlement agent may apply to theappropriate licensing authority for a waiver of this fidelity bond oremployee dishonesty requirement; and
3. A surety bond of not less than $200,000.
C. A settlement agent, other than an attorney or a title insurance company ifsuch company's financial statements are audited annually by an independentcertified public accountant, shall, at its expense, have an audit of itsescrow accounts conducted by an independent certified public accountant atleast once each consecutive 12-month period. The appropriate licensingauthority shall require the settlement agent to provide a copy of its auditreport to the licensing authority no later than 60 days after the date onwhich the audit is completed. A settlement agent that is a licensed titleinsurance agent under Title 38.2 shall also provide a copy of the auditreport to each title insurance company that it represents. In lieu of suchannual audit, a settlement agent that is licensed as a title insurance agentunder Title 38.2 shall allow each title insurance company for which it has anappointment to conduct an analysis of its escrow accounts in accordance withregulations adopted by the Commission or guidelines issued by the Bureau ofInsurance of the Commission, as appropriate, at least once each consecutive12-month period, and each title insurance company conducting such analysisshall submit a copy of its analysis report to the appropriate licensingauthority no later than 60 days after the date on which the analysis iscompleted. With the consent of the title insurance agent, a title insurancecompany may share the results of its analysis with other title insurancecompanies that will accept the same in lieu of conducting a separateanalysis. A title insurance company shall retain a copy of the analysis oraudit report, as applicable, for each title insurance agent it has appointedand such reports and other records of the insurance company's activities as asettlement agent shall be made available to the appropriate licensingauthority when examinations are conducted pursuant to provisions in Title38.2.
(1997, c. 716, § 6.1-2.21; 1998, c. 69; 2000, c. 549; 2002, c. 464; 2007, c.898; 2008, c. 92; 2010, c. 794.)
§ 55-525.20. (Effective October 1, 2010) Duties of settlement agents.
A. A settlement agent shall exercise reasonable care and comply with allapplicable requirements of this chapter and its licensing authority regardinglicensing, financial responsibility, errors and omissions or malpracticeinsurance policies, fidelity bonds, employee dishonesty insurance policies,audits, escrow account analyses and record retention.
B. A settlement agent who is not (i) a person described in subdivision A 5 of§ 55-525.19 or (ii) a title insurance company as defined in § 38.2-4601 shallmaintain the following to the satisfaction of the appropriate licensingauthority:
1. An errors and omissions or malpractice insurance policy providing aminimum of $250,000 in coverage;
2. A blanket fidelity bond or employee dishonesty insurance policy coveringpersons employed by the settlement agent providing a minimum of $100,000 incoverage. When the settlement agent has no employees except the owners,partners, shareholders or members, the settlement agent may apply to theappropriate licensing authority for a waiver of this fidelity bond oremployee dishonesty requirement; and
3. A surety bond of not less than $200,000.
C. A settlement agent, other than an attorney or a title insurance company ifsuch company's financial statements are audited annually by an independentcertified public accountant, shall, at its expense, have an audit of itsescrow accounts conducted by an independent certified public accountant atleast once each consecutive 12-month period. The appropriate licensingauthority shall require the settlement agent to provide a copy of its auditreport to the licensing authority no later than 60 days after the date onwhich the audit is completed. A settlement agent that is a licensed titleinsurance agent under Title 38.2 shall also provide a copy of the auditreport to each title insurance company that it represents. In lieu of suchannual audit, a settlement agent that is licensed as a title insurance agentunder Title 38.2 shall allow each title insurance company for which it has anappointment to conduct an analysis of its escrow accounts in accordance withregulations adopted by the Commission or guidelines issued by the Bureau ofInsurance of the Commission, as appropriate, at least once each consecutive12-month period, and each title insurance company conducting such analysisshall submit a copy of its analysis report to the appropriate licensingauthority no later than 60 days after the date on which the analysis iscompleted. With the consent of the title insurance agent, a title insurancecompany may share the results of its analysis with other title insurancecompanies that will accept the same in lieu of conducting a separateanalysis. A title insurance company shall retain a copy of the analysis oraudit report, as applicable, for each title insurance agent it has appointedand such reports and other records of the insurance company's activities as asettlement agent shall be made available to the appropriate licensingauthority when examinations are conducted pursuant to provisions in Title38.2.
(1997, c. 716, § 6.1-2.21; 1998, c. 69; 2000, c. 549; 2002, c. 464; 2007, c.898; 2008, c. 92; 2010, c. 794.)
§ 55-525.20. (Effective October 1, 2010) Duties of settlement agents.
A. A settlement agent shall exercise reasonable care and comply with allapplicable requirements of this chapter and its licensing authority regardinglicensing, financial responsibility, errors and omissions or malpracticeinsurance policies, fidelity bonds, employee dishonesty insurance policies,audits, escrow account analyses and record retention.
B. A settlement agent who is not (i) a person described in subdivision A 5 of§ 55-525.19 or (ii) a title insurance company as defined in § 38.2-4601 shallmaintain the following to the satisfaction of the appropriate licensingauthority:
1. An errors and omissions or malpractice insurance policy providing aminimum of $250,000 in coverage;
2. A blanket fidelity bond or employee dishonesty insurance policy coveringpersons employed by the settlement agent providing a minimum of $100,000 incoverage. When the settlement agent has no employees except the owners,partners, shareholders or members, the settlement agent may apply to theappropriate licensing authority for a waiver of this fidelity bond oremployee dishonesty requirement; and
3. A surety bond of not less than $200,000.
C. A settlement agent, other than an attorney or a title insurance company ifsuch company's financial statements are audited annually by an independentcertified public accountant, shall, at its expense, have an audit of itsescrow accounts conducted by an independent certified public accountant atleast once each consecutive 12-month period. The appropriate licensingauthority shall require the settlement agent to provide a copy of its auditreport to the licensing authority no later than 60 days after the date onwhich the audit is completed. A settlement agent that is a licensed titleinsurance agent under Title 38.2 shall also provide a copy of the auditreport to each title insurance company that it represents. In lieu of suchannual audit, a settlement agent that is licensed as a title insurance agentunder Title 38.2 shall allow each title insurance company for which it has anappointment to conduct an analysis of its escrow accounts in accordance withregulations adopted by the Commission or guidelines issued by the Bureau ofInsurance of the Commission, as appropriate, at least once each consecutive12-month period, and each title insurance company conducting such analysisshall submit a copy of its analysis report to the appropriate licensingauthority no later than 60 days after the date on which the analysis iscompleted. With the consent of the title insurance agent, a title insurancecompany may share the results of its analysis with other title insurancecompanies that will accept the same in lieu of conducting a separateanalysis. A title insurance company shall retain a copy of the analysis oraudit report, as applicable, for each title insurance agent it has appointedand such reports and other records of the insurance company's activities as asettlement agent shall be made available to the appropriate licensingauthority when examinations are conducted pursuant to provisions in Title38.2.
(1997, c. 716, § 6.1-2.21; 1998, c. 69; 2000, c. 549; 2002, c. 464; 2007, c.898; 2008, c. 92; 2010, c. 794.)
