Ala. Admin. Code r. 482-1-148-.07
Current through Register Vol. 43, No. 1, October 31, 2024
Section 482-1-148-.07 - Title Insurance Agent License(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.Ala. Admin. Code r. 482-1-148-.07
New Rule: October 18, 2012; effective January 1, 2013. Filed with LRS October 18, 2012. Rule is not subject to the Alabama Administrative Procedure Act.Amended by Alabama Administrative Monthly Volume XLI, Issue No. 10, July 31, 2023, eff. 9/14/2023; operative 1/1/2024.Author: Commissioner of Insurance
Statutory Authority:Code of Ala. 1975, §§ 27-5-4, et seq., 27-25-8.