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.
Title Agent Regulation
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
Title Agent Regulation
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
Title Agent Regulation
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
Title Agent Regulation
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
Title Agent Regulation
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
Title Agent Regulation
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.
Title Agent Regulation
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
Title Agent Regulation
Rule 8 – License Renewal◦Fees:Business Entities:$100 if paid on time$150 if paid within 30 days
Title Agent Regulation
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
Title Agent Regulation
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
Title Agent Regulation
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
Title Agent Regulation
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
Title Agent Regulation
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
Title Agent Regulation
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
Title Agent Regulation
Rule 12 – Compliance◦All title agents must renew or license will expire
◦Individual title agents must complete CE to renew
Title Agent Regulation
Questions?
www.aldoi.gov