report of the commissioner to study - Maryland Insurance ...

negligible when compared to the amounts of many defalcations. Surety bondrequirements range from a low of $10,000, required by Texas, to a high of $200,000required by Virginia. 42With respect to fidelity bonds, Florida has a $50,000 minimumrequirement for title insurance producers and the state of Washington has a $200,000requirement. 43Statutory or Common Law Assignment of Liability – Some states have passedlaws and others have common law that hold an underwriter liable under agency lawprinciples for a defalcation by a licensed title insurance producer or agency. 44Guaranty Funds – Texas has created a guaranty fund specifically for the titleinsurance industry. The Texas Title Insurance Guaranty Association (“TTIGA”) wasestablished because, unlike Maryland’s Property and Casualty Insurance GuarantyCorporation, the Texas Property and Casualty Insurance Guaranty Association does notcover title insurance underwriters. The purpose of the TTIGA is to protect consumersfrom insolvent underwriters and title insurance agencies and to cover losses from escrowaccounts. 45The TTIGA is funded through a $2.00 per policy fee placed on every titleinsurance policy sold in the state. 46The fees are assessed on each owner or lender policypurchased at closing and must be deposited into an escrow or trust account that cannot becommingled with producer or agency operating accounts. 4742 TEX. INS. CODE ANN. § 2651.101 (2012); VA. CODE ANN. § 55-525.20 (2012).43 FLA. STAT. § 626.84198(1)(a); WASH. REV. CODE § 48.29.155(1)(a) (2005).44 See, e.g. FLA. STAT. § 627.792 (2012).45 TEX. INS. CODE ANN. § 2602.002 (2012).46 TEX. INS. CODE ANN. § 2602.151 (2012). The amount of the fee is set at least annually by the TTIGA’sBoard of Directors (TEX. INS. CODE ANN. § 2602.152 (2012)) and the amount of the current fee is availableonline at http://www.ttiga.org/pgf.html.47 Id.23