Title Agent

Idaho Statutes: Title 41, Chapter 27:
Rules:

18.05.01 Rules for Title Insurance Regulation

Title insurance: the certification or guarantee of title or ownership, or insurance of owners of property or others having an interest therein or liens or encumbrances thereon, against loss by encumbrance, or defective titles, or invalidity, or adverse claim to title. This definition shall not be deemed to apply as to the business of preparing and issuing abstracts of, but not certifying, guaranteeing, or insuring, title to or ownership of property or certifying to the validity of documents relative to such title.

A title insurer may also insure:

For a full list of insurance licensing terms please click here.

Title agents are required to carry a Surety Bond in order to obtain and maintain a license in Idaho.

The minimum amount for the bond is $10,000 per county in which the title insurance agent is licensed.

The bond must increase in increments $10,000 with each additional escrow officer in the county up to the maximum bond amount of $50,000.

The manager or supervisor of the title insurance agent’s principal office in a county does not count as an escrow officer in determining the amount of the title insurance agent’s bond.

Please follow the guide below to apply for a Title Agent License.

Step One: Prepare your application packet. This packet will need to contain:

• The completed application.
• Plant Information, if a new plant, it must be inspected and approved by the Department prior to license issuance. If purchasing or leasing an existing plant, attach a copy of the purchase and sales agreement.
• Non-refundable Application License Fee of $50 via check or money order made out to “Idaho Department of Insurance”.
• Certified Copy of an escrow surety bond.
• If the title agent is a Limited Liability Company (L.L.C), include the Limited Liability Addendum.
• Copy of business filing with the Secretary of State.
• Documentation of verifiable experience in the title insurance industry.
• Documentation of familiarity and understanding of applicable sections of the Idaho Code and Rules.

Step Two: Mail Completed and Signed Application (w/any additional required items) to:

Idaho Department of Insurance
700 W. State Street, 3rd Floor
P.O. Box 83720
Boise, Idaho; 83720-0043

Idaho title agent’s licenses expire on January 1st. There is a non-refundable fee of fifty dollars ($50.00) to renew the license.

• If the renewal fee is not paid by the 1st of January the license will not be considered renewed.

• If the renewal fee is not paid on time the license will be considered invalid at the end of business on December 31st.

• If the license lapses the agent may then be required to appear at a hearing before the Director of the Department of Insurance (Idaho Code § 41-2710(5)) and/or be subject to a non-refundable late fee of two dollars ($2.00) a day up to a maximum of one hundred dollars ($100) before the license can be renewed.
• Each County needs to submit a separate renewal packet.

To renew a Title license the Title Insurance Agent Renewal Packet needs to be completed and mailed to the Department of Insurance along with the non-refundable $50.00 renewal fee. Please make checks and money orders out to “Idaho Department of Insurance”

Please send completed form to

Idaho Department of Insurance
700 W. State Street, 3rd Floor
P.O. Box 83720
Boise, Idaho; 83720-0043

Short Term Rates

Long Term Rates

Licensed title agents conducting escrow closings are required to file escrow rates, including a minimum and negotiable rate, rates for maintaining an interest-bearing escrow account for earnest money and rates for long term escrow accounts by March 15 to be effective on April 15 of each year.

If a title agent conducts escrow closings in multiple counties, a filing must be submitted for each county.

As part of the review process, the Department will be reviewing escrow rate filings of minimum negotiable rates to ensure that they are in compliance with IDAPA 18.05.01.022 and IDAPA 18.05.01.031. As in the past, the Department will consider a minimum negotiable rate filing that is calculated by applying the filed rate to the average price of a residential sale in the county of licensure. This average price can be based on individual title insurance agent data or an average that incorporates data from various sources, i.e. other title insurance agents. Please specify your basis of the average price in your filing.

Example Calculation of Minimum Negotiable Rate
File rate, $45.00 base rate, $3.00 rate per thousand, and an average residential sales price in the county of $200,000.00.

Calculation: $45.00 + $3.00(200) = $645 minimum negotiable rate

The Department of Insurance may request documentation of how the average residential sales price was determined prior to approval of a minimum negotiable rate)

All escrow rate filings and any supporting documents should be sent to:

Title Section
Phone: 208-334-4321, FAX: 208-334-4398
Idaho Department of Insurance
700 W. State Street, 3rd Floor
P.O. Box 83720
Boise, Idaho; 83720-0043

If sent by email, a portable document format (pdf) is required.

Operations and Management

This includes a review of management and control, contracting authority, surety bond, claims, and financial interests of the title entity management and ownership.

Advertising and Marketing

This includes a review of the title agent’s marketing and sales practices. This includes a review of all accounts involving contributions, donations, sales expenses, travel and meal expenses, title agent/staff function expenses, as well as samples of listing packages or property profiles.

Title Files

This includes a review of title insurance rates charged, the correct insured amount of the owner’s and mortgagee’s policies, proper countersignatures, double sales, proper use of the Standards of Liability and liens and encumbrance rules, and unique kind or class of risk and any business interests of the title officers.

Escrow Fiduciary Accounts

This includes a review of the fiduciary accounts utilized during the examination period. The accounts are reviewed for correct labeling, separation from operating funds, reconciliation, and negative balances.

Escrow Files

This includes a review of the adequacy of written instructions, conformity to the written instructions by the title agent, escrow rates charged as filed, signed settlement statements, receipt and disbursement ledgers, evidence of receipts and disbursements made, file overdrafts, and any business interests of the escrow officers.

After the examination is complete the Department prepares an examination report and provides it to the title agent being examined affording them up to twenty-eight (28) days within which to review, comment and request a hearing. Unless a hearing is requested in accordance with Chapter 2, Title 41, Idaho Code, the examination report shall be adopted by order of the Director and deemed available to the public notwithstanding the exemptions from disclosure provided in Chapter 1, Title 74, Idaho Code.

Producers and agencies have a duty to report any criminal or administrative actions to the Idaho Department of Insurance within 30 days per §41-1021.

Producers are encouraged to use the NIPR Reporting of Actions Warehouse at www.nipr.com as a convenient means to post documents and explanations related to reportable actions.

While the Department encourage the use of the NIPR Reporting of Actions Warehouse for documents, actions still need to be reported to the Department directly, either by e-mail or the applicable background question on new license applications and/or renewals.

Application Form, Title Insurance Agent

Appointment Form, Title and Escrow Agent

Appointment Form, Title Insurance Agent Endorsement

Bond, Title Insurance Agent

Custodial Agreement

Financial Interest Notice, Title Insurance

LLC Addendum, Title Insurance Agent Entities

Title Plant Addendum, Exhibit A

Renewal Packet, Title Insurance Agent

Termination of Appointment, Title Agent

Update Address Form, State to State