Division of Agent and Agency Services
Protecting the Insurance-Buying Public by Licensing Competent and Trustworthy
Individuals and Entities and Expeditiously Investigating Alleged Violations
of the Florida Insurance Code
Licensure & Compliance
Title Agent
Frequently Asked Questions
Last updated: April 27, 2008
- What are the requirements to be licensed as a title agent?
Resident agents /
Nonresident agents
- Will a background check be performed?
Yes. The department will propound reasonable interrogatories in addition to those contained in the application to protect the public and ascertain the applicant’s qualifications, in addition to the examination required to be taken before a license is issued. The background check must include submission of the applicant’s fingerprints to the Florida Department of Law Enforcement (FDLE) and the Federal Bureau of Investigation (FBI) to review any local, state or federal criminal records of the applicant.
[Florida Statutes § 626.201]
In addition, insurers appointing a title agent for the first time will secure on the applicant a detailed credit and character report for the 5-year period immediately prior to the date of application for appointment. In the case of a title insurance agency, this report will be obtained for each officer of the agency. Information contained in credit and character reports furnished to the department are confidential and exempt from the public disclosure requirements. [Florida Statutes 626.842]
Prior Criminal History Requirements
(Click Here)
- What are the requirements to be an agent-in-charge?
The agent-in-charge for a title agency must be a licensed and appointed title agent or an attorney in good standing with the Florida Bar.
- Can I pay real estate agents, brokers or others for each piece of business they send to me?
No. The Florida Statutes prohibit title insurance agents and agencies from paying, allowing, giving, or offering to pay, allow or give a direct or indirect inducement for the purchase of title insurance. Paying someone for each piece of business they send to you would be considered an inducement, which would be a violation of the statutes. [Florida Statutes §626.9541(1)(h)3.a.]
- Is there a Florida Statute that requires a title agent to have E&O and fidelity?
No. It's not required for an individual 4-10 license.
- Can I arrange for my bank to sweep my escrow account at night to earn a higher interest rate, which will allow me to offset my overhead expenses?
The Florida Statutes provide detailed directions as to the types of accounts and investments that may be used for escrow accounts. These requirements are the same for the entire day, night just during business hours. Florida Statutes §626.8473(3) states the funds must be immediately placed in a financial institution that is a member of the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF). This means the funds may be invested in any type of investment that meets the requirements of Florida Statute §17.57 as long as it is an account that is maintained with a member of the FDIC or the NCUSIF.
Florida Administrative Code 69O-186.008 prohibits a title insurance agent or title insurer from endangering the funds entrusted to them through the escrow process. In addition, this section of the code sets forth the procedures for accepting escrow funds and disbursing against the funds collected. A title insurance agent or insurer may only disburse on funds that are in the escrow at the time of the closing, or it is reasonable to expect the money is in the account at that time.
Florida Administrative Code 69O-186.008(4) adds that funds received in excess of the insured amount must be deposited in a financial institution that has a rating not less than the minimum standards established by the Government National Mortgage Association (GNMA). Basically these requirements state the funds must be invested in an account at an institution that is a member of an Automated Clearing House (ACH) or a correspondent of a member. It also must be rated by a suitable rating agency and receive an acceptable rating.
A title insurance agent, agency, or title insurer could allow for escrow funds to be “swept” into another investment account provided:
The funds are still maintained in an account that meets investment guidelines of the Florida Statutes and the Florida Administrative Code.
- The buyer and the seller have both agreed at the time of deposit to allow the title insurance agent, agency or title insurer to earn interest on the escrow funds.
- The buyer and the seller have agreed to the terms and the provisions of the investment agreement that transfers the funds from the escrow into any other acceptable account.
- The investment grade of the account being used meets the Federal and State guidelines.
- The funds will be available for disbursement at the time of closing.
Any deviation from the Florida Statutes and the Florida Administrative Code could be considered as grounds for administrative action against the agent, the agency, or the insurer. A person engaging in this type of investment strategy would need to be very careful not to violate the multitude of provisions in the Florida Statutes, the Florida Administrative Code, and possibly some federal regulations.
Unless advance permission has otherwise been granted by the escrow depositor, it has always been the position of this Department that escrow accounts utilized in moving the funds to various other investments, such as sweep accounts, are not in compliance with the Florida Insurance Code, particularly Section 626.8473(3), Florida Statutes, which requires escrow funds to at all times be maintained under protection of the FDIC or NCUSIF. Accordingly, we will pursue action against any licensee that we discover is engaging in this practice.
- What if I have other questions that are not addressed here?
You can send your specific question or concern via email at
TITLE@MYFLORIDACFO.COM.
You can also mail or fax your request to:
Department of Financial Services
Bureau of Investigation Title Section
200 East Gaines Street
Tallahassee, FL 32399-0320
(850) 488-5951 (Fax)
