Overview of the Virginia Title Insurance Settlement Bond
If you would like to register as a Title Insurance Settlement Agent in Virginia, you’ll be required to fulfill a number of requirements. A significant part of your registration process is posting a Virginia Title Insurance Settlement Bond. This surety bond is required by the Virginia State Corporation Commission’s Bureau of Insurance and it’s in the amount of $200,000.
The Virginia Title Insurance Settlement Bond protects customers in case of financial losses, resulting from any unlawful practices on the part of the agent. It also ensures that agents comply with the laws of Commonwealth of Virginia and the regulations prescribed by the State Corporate Commission.
If the agents fail to abide by the regulations that go along with the bond, a bond claim can be filed against them to secure compensation for the claimant. The surety will compensate for damages up to the full sum of the bond $200,000, but in the end it’s up to the agent to reimburse the amount.
No experience with posting a surety bond? Check our ‘What is a surety bond’ page and get acquainted with the bonding process!
Below you will find more information about the bonding costs, what bond claims are, and how to get bonded.
For more information about the bonding requirements for Title Insurance Settlement Agents, call us at 866.450.3412 to speak to our bond experts!
How Much Does It Cost?
The Title Insurance Settlement bond in Virginia is in the amount of $200,000. The actual amount you will be paying on a regular basis will be a fraction of this amount. The final bonding cost is estimated by the surety and it’s based on a number of financial factors, your personal credit score being the most important one of them.
If you have a good credit score, of 700 FICO or above, you will get a rate on your bond in the range between 0.75% to 2.5% of the total bond amount. Respectively, if you have a bad credit (a FICO of 650 or less) your bonding rate can get as high as 10% of the total sum.
If you want to get an exact number of your cost, take advantage and get a free bond quote from Bryant Surety Bonds. Submit an online application form and we will contact you with a quote on your bond!
Getting Bonded With Bad Credit
Bad credit applicants present higher risk to the surety and that’s why their premium is increased and can reach up to 10% of the final sum.
However, you still have a chance for a good bonding deal, even if your financial background is far from perfect. With Bryant Surety Bonds even applicants with bad credit can get a good rate. Check our Bad Credit Program which is created for such applicants to get bonded as successfully as those with higher scores.
Bryant Surety Bonds partners with a number of A-rated, T-listed bonding companies, which ensures that you get the lowest possible rate for your specific financial situation.
What Happens If You Get a Bond Claim?
A bond claim might occur if a bonded Title Insurance Settlement Agent violates the terms of the surety bond agreement, the laws of Commonwealth of Virginia and the regulations prescribed by the State Corporate Commission.
Among the unlawful practices that must be avoided by agents are:
- failing to settle closing appointment on time
- sending wrongly recorded documents to the lender
- failing to prepare the settlement statements correctly and many more.
In case the agents fail to comply with the law and a valid claim is filed against them, the surety will compensate the claimant for up to the full amount of the bond. However, it is the bonded agent that is liable to reimburse all payments made upon the bond claim.
Apply for Your Bond Now!
Want to apply for a Title Insurance Settlement Bond? Begin the process by submitting our online bond form. You will then receive a free bond quote and assistance from our experts for finalizing the rest of your application.
Still having questions? Reach out to our experts at 866.450.3412 to receive advice on bond-related issues!