alabama’s new title insurance agent licensing law

Alabama’s New Title Insurance Agent Licensing Law

Effective January 1, 2013

www.aldoi.gov

New Law TimelineJanuary 1, 2013 – All title agents

authorized under old law and not canceled prior to December 31, 2012, were issued “replacement” licenses and were “appointed” to represent the title insurer

New Law Timeline (con’t)1/1/13 to 3/31/13 – Title Agents

exempt from exam must apply on or before March 31

1/1/13 to 6/30/13 – Title Agents with “replacement” licenses must apply under new law

7/1/13 – “Replacement” licenses will expire

New Law Timeline (con’t)July 1, 2013 – Examination

Requirement – law allows the Commissioner 24 months to implement. We anticipate having the exam ready on July 1, 2013.

January 1, 2014 – Fingerprinting Requirement – law allows the Commissioner 24 months to implement. We anticipate requiring fingerprints by January 1, 2014.

New Law Timeline (con’t)1/1/2014 to 12/31/2014 – Individual Title

Agents born in even-numbered years – license expires at end of birth month – can renew beginning 75 days prior to expiration.◦$40 biennial license fee – if renewed on time

◦$90 late renewal fee – within 30 days after expiration date (license does not lapse)

◦$80 reinstatement fee – within 12 months

New Law Timeline (con’t)10/1/2014 to 12/31/2014 –

Business Entity Title Agents renew – license expires 12/31 of even years◦$100 biennial license fee◦$150 late renewal fee – within 30 days after expiration date (license does not lapse)

New Law Timeline (con’t)1/1/2015 to 12/31/2015 – Individual Title

Agents born in odd-numbered years – license expires at end of birth month – can renew beginning 75 days prior to expiration.◦$40 biennial license fee – if renewed on time

◦$90 late renewal fee – within 30 days after expiration date (license does not lapse)

◦$80 reinstatement fee – within 12 months

Title Agent Regulation

Rule 3 – Prelicensing Course◦20 hour course – approved provider

◦Must have certificate of completion (COC) with you to take the state exam.

◦The COC is only valid for 12 months.


Rule 6 – Examination◦Only 2 exceptions:5-year rule – one-time exemption

12-month rule – for any title agent previously licensed under the new law by passing exam or exempt under 5-year rule, within 12 months of cancelling license


Rule 6 – Examination◦Limitations on Repeat ExamsFirst 2 attempts – no limitationsAfter 2nd failure, must wait 3 months

No waiting period after 3rd failureAfter 4th failure, must wait 6 months


Rule 6 – Examination ◦Results given immediately◦Must apply for license within 12 months of passing exam

◦$75 exam fee – to be paid with each exam attempt


Rule 7 – Title Agent License◦Required to “issue” or “sign” title commitment, policy, endorsement

◦Business Entity Agent: Alabama entity with principal place of business physically located in Alabama

At least one licensed individual


Rule 7 – Title Agent License ◦Individual Agent: Must be at least 19 years of age and either: Alabama resident Full-time employee of licensed agent with principal place of business physically located in Alabama


Rule 7 – Title Agent License

◦Both Individual Agents and Business Entity Agents: Must be appointed by the title insurer

Must keep name and address current with DOI - $50 penalty for failure to report change with 30 days.


Rule 8 – License Renewal◦All renewals done on-line◦Fees: Individuals:$40 if paid on time$90 if paid within 30 days$80 if paid within 12 months


Rule 8 – License Renewal◦Fees:Business Entities:$100 if paid on time$150 if paid within 30 days


Rule 8 – License Renewal◦Timing: Individual licenses expire in month of birth – even or odd years based on year of birth:Born in even year, renew in 2014 and every other year thereafter

Born in odd year, renew in 2015 and every other year thereafter


Rule 8 – License Renewal◦Timing:Business entity licenses expire December 31, 2014, and every other year thereafterRenew on-time Oct 1 to Dec 31Renew with late fee until Jan 31


Rule 9 – Continuing Education◦24 hours, of which 3 are in ethics◦Cannot renew license without CE◦2014 renewals only have to do 12 hours, 2 in ethics

◦Teachers of CE course can only get same credit as students


Rule 9 – Continuing Education◦Title agents can only get credit for an particular course once per reporting period

◦A “classroom” hour is 50 minutes

◦Exempt from CE if licensed less than one year at time of license expiration


Rule 11 – Appointments◦All title agents must be appointed by the title insurer they represent

◦All appointments are handled on-line by the title insurer

◦Notice of appointment should be completed within 15 days


Rule 11 – Appointments◦All cancellations handled on-line

◦Appointment renewals handled under Regulation 109

◦Appointment fees: $30 for notice of appointment $10 for each annual renewal


Rule 12 – Compliance◦All title agents must renew or license will expire

◦Individual title agents must complete CE to renew


Questions?

www.aldoi.gov