• Definitions
• Audit and Review of Agent/Direct Operation Escrow and Trust Accounts G.2
• Direct Operations License L-3
• Policy Guaranty Fee G.1
• Requirements for Ceasing Operations by Agents and Direct Operations D.1
• Title Insurance Agent L-1
• Title Insurance Escrow Officer L-2

All of the forms referred to herein are available upon request from the Title Division of the Department.

IN ADDITION TO THE REQUIREMENTS FOR LICENSING AS ILLUSTRATED BELOW, THE SPONSORING TITLE INSURANCE COMPANY MUST SUBMIT WITH EITHER THE LONG FORM PROCEDURE OR SHORT FORM PROCEDURE THE FOLLOWING: 

                1.     Executed Original Abstract Form 

                2.     Executed Original Agent Contract 

                3.     Agent Contract Submission Form 

I.              ISSUANCE (Long Form - used for the initial licensing of Title Agent)

Each Title Agent’s initial license expires on the first day of the month two years after the date on which the license is issued. If a Title Agent holds two or more licenses, all licenses held by the agent shall expire on the same date as the initial license. 

A.    Individual - the following must be submitted:

1.    Completed Section A of the application for Title Insurance Agent’s license by the individual and each on-site manager. 

2.     One completed Section B of the application for Title Insurance Agent’s license for the proposed Sole owner. The Agent name on Section B must appear in the form as follows: Sole owner's name d/b/a Trade Name. 

3.    Copy of a valid Assumed Name Certificate filed in the county(ies) in which the Title Agent will operate. 

4.    Section C of the application for Title Insurance Agent’s license completed by the sponsoring Title Insurance Company. 

5.    Non-refundable license fee of $50.00. 

6.    Title Insurance Agent’s Bond or in lieu thereof a cash deposit or irrevocable letter(s) of credit issued by a financial institution in this state insured by an agency of the United States Government (or securities approved by the Department) in the sum of the greater of ten thousand dollars ($10,000) or an amount equal to ten percent (10%) of the gross premium written by the agent in accordance with the latest statistical report to the Department but not to exceed one hundred thousand dollars ($100,000). The Principal name on the Bond must reflect as follows: Sole owner's name d/b/a Trade Name. 

B.    Partnership - the following must be submitted:

1.     Completed Section A of the application for Title Insurance Agent’s license for each partner, and on-site manager if other than a partner and each officer, director, manager, or partner of an entity designated as a partner. 

2.     One completed Section B of the application for Title Insurance Agent’s license for the proposed partnership. The Agent name on Section B must reflect the exact Agent name. If an Assumed Name is being used the Agent name on Section B must appear in the form: Partnership Agent Name d/b/a Assumed Name. 

3.     If using an Assumed Name, a copy of a valid Assumed Name Certificate filed with the Secretary of State and/or County Clerk(s) in the county(ies) in which the Title Agent will operate. 

4.     Section C of the application for Title Insurance Agent’s license completed by the sponsoring Title Insurance Company. 

5.     Non-refundable license fee of $50.00. 

6.     Title Insurance Agent’s Bond or in lieu thereof a cash deposit or irrevocable letter(s) of credit issued by a financial institution in this state insured by an agency of the United States Government (or securities approved by the Department) in the sum of the greater of ten thousand dollars ($10,000) or an amount equal to ten percent (10%) of the gross premium written by the agent in accordance with the latest statistical report to the Department but not to exceed one hundred thousand dollars ($100,000). 

        i.      The Principal name on the Bond must reflect as follows: Name of the Partnership.

        ii.     If an Assumed Name is being used, the Agent name on the Bond must appear in the form: Partnership Agent Name d/b/a Assumed Name. 

7.     Copy of Partnership Agreement. 

C.    Entity - the following must be submitted:

1.     Completed Section A of the application for Title Insurance Agent’s license for each officer, director, manager, on-site manager, or partner, and each officer, director, manager, or partner of an entity designated as a partner. 

2.     One completed Section B of the application for Title Insurance Agent’s license for the proposed Entity. The Agent name on Section B must reflect the exact Agent name. If an Assumed Name is being used the Agent name on Section B must appear in the form: Entity Agent Name d/b/a Assumed Name. (If a single Entity uses more than one assumed name, a separate license application must be submitted for each assumed name.) 

3.     An ORIGINAL certified copy of the Certificate of Formation from the Office of the Texas Secretary of State.  

4.     If using an Assumed Name, a copy of a valid Assumed Name Certificate filed with the Office of the Texas Secretary of State and/or County Clerk(s). 

5.     A current Certificate of Account Status issued by the Franchise Tax Division of the Texas State Comptroller's Office. 

6.     Section C of the application for Title Insurance Agent’s license completed by the sponsoring Title Insurance Company. 

7.     Non-refundable license fee of $50.00. 

8.     Title Insurance Agent’s Bond or in lieu thereof a cash deposit or irrevocable letter(s) of credit issued by a financial institution in this state insured by an agency of the United States Government (or securities approved by the Department) in the sum of the greater of ten thousand dollars ($10,000) or an amount equal to ten percent (10%) of the gross premium written by the agent in accordance with the latest statistical report to the Department but not to exceed one hundred thousand dollars ($100,000). 

i.         The Principal name on the Bond must reflect as follows: Name of the Entity.  

ii.     If an Assumed Name is being used, the Agent name on the Bond must appear in the form: Entity Agent Name d/b/a Assumed Name.

9.     Application for at least one individual to act as Escrow Officer for the Entity Title Agent and a Texas Escrow Officers Schedule Bond or in lieu thereof a cash deposit or irrevocable letter(s) of credit issued by a financial institution in this state insured by an agency of the United States Government (or securities approved by the Department). 

II.    ISSUANCE (Short Form - used for additional appointments of the Title Agent) 

        For all Title Agents - the following must be submitted: 

                1.     Application for Additional Title Insurance Agent’s Appointment completed by the Title Insurance Company. 

                2.     Non-refundable Appointment fee of $16.00.                               

III.   CANCELLATION 

        A.    To cancel a Title Agent from acting as Agent for a Title Insurance Company, advance notice of 30 days must be given to said Agent, and the appropriate procedures must be followed and the following must be submitted to the Department: 

1.     Completed Notification of Appointment Cancellation (reverse side of Certificate of License). 

2.     The current Title Insurance Agent’s license or a sworn statement from the Agent stating that the license has been lost or misplaced or a sworn statement from the Title Insurance Company stating they have been unable to obtain the current Title Insurance Agent’s license from the Agent. 

3.     A transmittal letter indicating the reason for cancellation and the date the cancellation is to become effective. 

B.    Any Title Insurance Agent may voluntarily surrender his license at any time. Advance notice of 30 days must be given by the Agent to the Title Insurance Company concerned, and the following must be submitted: 

1.     Completed Notification of Appointment Cancellation (reverse side of Certificate of License). 

2.     The current Title Insurance Agent’s license or a sworn statement from the Agent stating that the license has been lost or misplaced. 

C.    Such forms, as listed above, must be submitted to the Department immediately upon termination of business operations between an Agent and a Title Insurance Company. 

IV.   RENEWAL 

A.    Agent licenses shall, on the date of expiration, be renewed pursuant to Texas Insurance Code 4003.002. Agent licenses shall be renewed for a period not to exceed two years and expire on the date designated by the Title Division of the Department. If an agent holds two or more licenses, each license held by the agent shall, on the date of expiration, be renewed with an expiration date to coincide with the expiration date of the initial license issued to the Title Agent or renewed by the Title Agent pursuant to this paragraph.  Unless revoked, terminated, cancelled or previously surrendered by the holder, the department shall send written notice of renewal to each agent at least 45 days prior to the expiration date of such license. In the event that the license is not renewed by the agent by the expiration date, the department shall, within 45 days after the license expires, send written notice of expiration to the agent. Failure of the department to send written notice of renewal or expiration shall not, in any event, toll the expiration date of the agent license nor prejudice any enforcement action brought by the department.

        B.    To renew any license, on or before the expiration date of the license, the Title Agent must submit to the Department the following: 

                1.     The original application for renewal of Title Insurance Agent’s license provided by the Department. 

                2.     Non-refundable renewal fee of $35.00. 

                3.     A Certificate of Account Status issued by the Franchise Tax Division of the Texas State Comptroller’s Office if the Title Agent is a corporate Agent and has not previously submitted a Certificate of Account Status to the Department. 

        C.    Failure of a Title Agent to submit any of the above forms on or before the expiration date of the license, results in automatic expiration of the respective license. 

        D.    If a Title Agent’s license is expired for not longer than 90 days, the license may be renewed by submitting the renewal form and paying the required non-refundable renewal fee and a fee of one half (1/2) of the initial license fee. 

        E.     If a Title Agent’s license is expired for more than 90 days, the license may not be renewed. 

        F.     If the amount of the Bond or other security required in Article 9.38, Texas Insurance Code, has increased from the Bond or other security on file with the Department, a new Bond, Rider, Endorsement, increase in cash, or an amended letter of credit in the amount required by Article 9.38 shall be filed.. 

V.    CHANGE IN OPERATIONS 

A.    The following changes in operations DO NOT REQUIRE cancellation of existing license and issuance of a new license:             

1.  A change in Entity ownership of less than 50% and/or a change in the officers, directors, manager, on-site managers, or partners of a currently licensed corporate Title Agent requires notification by letter to the Title Division of the Department. Such notification must be accompanied by the following documents, as applicable:  

ii.        Title Agent Update Form signed and dated by the Agent. 

iii.      Schedule D. 

iii.    Section A of the application for Title Insurance Agent’s license for each new officer, director, manager, on-site manager, or partner, and each new officer, director, manager, or partner of an entity designated as a partner. 

                2.     A change in the location or mailing address of an existing Title Agent or branch office location requires notification by letter to the Title Division of the Department. Such notification must be accompanied by a completed Title Agent Update Form. 

                3.     Change in County. 

                        a.     Addition of a County requires notification by letter to the Title Division of the Department. Such notification must be accompanied by the following: 

                                i.      Executed original Agent Contract, or an Amendment thereto. 

                                ii.     Agent Contract Submission Form. 

                                iii.    Executed original Abstract Plant Information Form for all counties, or a copy of an Abstract Plant Information Form for all counties, with the Date of On-site Exam within the previous twelve (12) months. 

                                iv.    Title Agent Update Form signed and dated by the Title Agent. 

                                v.     The current Title Insurance Agent’s license or a sworn statement from the Agent stating that the license has been lost or misplaced. 

                        b.     Deletion of a County requires notification by letter to the Title Division of the Department. Such notification must be accompanied by the following: 

                                i.      Executed original Agent Contract, or an Amendment thereto. 

                                ii.     Agent Contract Submission Form. 

                                iii.    Executed original Abstract Plant Information Form for all current counties, or a copy of an Abstract Plant Information Form for all current counties, with the Date of On-site Exam within the previous twelve (12) months. 

                                iv.    Title Agent Update Form signed and dated by the Title Agent. 

                                v.     The current Title Insurance Agent’s license or a sworn statement from the Agent stating that the license has been lost or misplaced. 

4.        Change in the “Entity Name" and/or "Assumed Name" or "Trade Name" of an entity title agent.  The change requires notification by letter from the Title Agent to the Title Division of the Department. Such notification must be accompanied by the following, as applicable:  

i.         Executed original Agent Contract, or an Amendment thereto.  

ii.        Agent Contract Submission Form. 

iii.      Title Agent Update Form signed and dated by the Agent. 

iv.      Texas Title Insurance Agent’s/Direct Operation’s bond and Texas Escrow Officer Schedule bond or an original rider or endorsement thereto reflecting the new Agent name. 

v.       An original certified copy of the amended Certificate of Formation reflecting the Entity name as amended. 

vi.      If a "Trade Name" or "Assumed Name" is used, a copy of a valid Assumed Name Certificate filed with the Secretary of State and/or County Clerk(s). 

vii.    The current Title Insurance Agent’s license and all current Title Insurance Escrow Officer licenses or a sworn statement from the Agent stating that the license has been lost or misplaced. 

                5.     Change in the “Trade Name” of an individual or partnership Agent. This change requires notification by letter from the Title Agent to the Title Division of the Department. Such notification must be accompanied by the following: 

                                i.      Executed original Agent Contract, or an Amendment thereto. 

                                ii.     Agent Contract Submission Form. 

                                iii.    Title Agent Update Form signed and dated by the Agent. 

                                iv.    Texas Title Insurance Agent’s/Direct Operation’s bond and Texas Escrow Officer Schedule bond or an original rider or endorsement thereto reflecting the new Agent name. 

                                v.     A copy of a valid Assumed Name Certificate filed with the Secretary of State and/or County Clerk(s). 

                                vi.    The current Title Insurance Agent’s license and all current Title Insurance Escrow Officer licenses or a sworn statement from the Agent stating that the license has been lost or misplaced. 

                6.     Ownership change of a partnership Title Agent due to withdrawal of a partner(s) and no new partner(s) added to partnership. This change requires notification by letter from the Title Agent to the Title Division of the Department. Such notification must be accompanied by the following: 

                                i.      Executed original Agent Contract, or an Amendment thereto. 

                                ii.     Agent Contract Submission Form. 

                                iii.    Title Agent Update Form signed and dated by the Agent. 

                                iv.    Copy of amended partnership agreement. 

                                v.     The current Title Insurance XE "Title Insurance"  Agent’s license or a sworn statement from the Agent stating that the license has been lost or misplaced. 

7.        Ownership change of an Entity Title Agent due to a person ceasing to be an owner or stockholder through the transfer or sale of all of the person’s shares of stock or interest and no new stockholder(s) or owners added to the Entity including the withdrawal of a partner(s) and no new partner(s) added. This change requires notification by letter from the Title Agent to the Title Division of the Department. Such notification must be accompanied by the following:  

i.         Title Agent Update Form signed and dated by the Agent. 

ii.        Copy of documentation evidencing ownership change. 

8.     Subject to Administrative Rule L-1.V.B.2, a change in organizational structure made by an Entity pursuant to the Texas Business Organization Code. This change requires notification by letter from the currently licensed Title Agent to the Title Division of the Department. Such notification must be accompanied by the following documents, as applicable: 

                                                i.         Title Agent Update Form signed and dated by the Agent. 

iv.      Schedule D 

v.       Completed Section A of the application for Title Insurance Agent’s license for each new officer, director, manager, on-site manager, or partner, and each new officer, director, manager, or partner of an entity designated as a partner. 

iv.    The applicable certificate issued by the Office of the Texas Secretary of State (e.g. Certificate of Merger, Exchange, or Conversion). 

v.     In cases involving a change in the “Entity Name,” "Trade Name," or "Assumed Name," the requirements of Administrative Rule L-1.V.A.4 may be completed simultaneously with these requirements.      

B.                   The following changes in operations REQUIRE cancellation of existing license and issuance of a new license. 

                                                  1.      Ownership change of an individual or partnership Title Agent with new partner(s) added to partnership. 

                                                  2.      Entity ownership change of 50% or more with new owner(s) or partners(s) added to the Entity. 

VI.   “SPECIAL NOTE REGARDING CHANGE IN OPERATIONS” 

        A.    Existing licenses will be canceled no later than 60 days from receipt of the first cancellation notice. All required items listed in Section III.A above must be in the office of the Title Division of the Department before a new license will be issued. 

        B.    New owners cannot conduct the business of a Title Agent until they have been notified by the Title Division of the Department that their license has been issued. 

        C.    A new name may not be used until the Agent has been notified by the Title Division of the Department that a license has been issued under a new name. 

        D.    When there is a change in operations of an existing Title Agent which requires cancellation of the Agent license, all currently licensed Escrow Officers for said Title Insurance Agent must be canceled. If an Escrow Officer is to represent a new Title Agent, an application for a new license must be filed on behalf of the Escrow Officer. 

        E.     An agent may not operate in a County for a specific Underwriter until the Agent has been notified by the Title Division of the Department that the Change of County filing has been approved and the County has been added to their title agent license.

All of the forms referred to herein are available upon request from the Title Division of the Department. 

I.      PERSONS REQUIRED TO BE LICENSED 

        A.    The Texas Title Insurance Act defines “Escrow Officer” as an attorney, or bona fide employee of either (i) an attorney licensed as an Escrow Officer, (ii) a Direct Operation XE "Direct Operation" , or (iii) a Title Insurance Agent, whose duties include any or all of the following: 

                1.     countersigning title insurance forms; 

                2.     supervising the preparation and supervising the delivery of title insurance forms; 

                3.     signing escrow checks; 

                4.     closing the transaction.       

        B.    No person shall act in the capacity of Escrow Officer without being licensed by the Department, and obtaining and maintaining a surety bond as required by Texas Insurance Code Chapter 2652 Subchapter C; and no Title Insurance Agent or Direct Operation shall employ any person as Escrow Officer who is not licensed and bonded in accordance with the provisions of the Texas Title Insurance Act. 

        C.    No attorney shall be required to be licensed as an Escrow Officer in order to perform the duties of an Escrow Officer as defined in Texas Insurance Code § 2501.003(4). All non-attorney employees of an attorney who perform any or all of the duties of an Escrow Officer are required to be licensed. Notwithstanding the foregoing a Direct Operation or Title Insurance Agent shall NOT permit an attorney to conduct the attorney's business in the name of the Direct Operation or Title Insurance Agent unless the attorney and all of the bona fide employees of the attorney who perform any or all of the duties of an Escrow Officer are licensed as Escrow Officers. 

                Insurance Agent unless that attorney and the attorney’s bona fide employee who perform any or all of the duties of an Escrow Officer are licensed as Escrow Officers. 

        D.    An attorney may become licensed as an Escrow Officer, in which case the attorney shall comply with all requirements of the Texas Insurance Code with regard to Escrow Officers and trust funds, as if the attorney were a Title Insurance Agent. All escrow accounts utilized by licensed Escrow Officers for closing transactions shall be subject to the audit requirements contained in Texas Insurance Code Chapter 2651 Subchapter D.  An attorney licensed as an escrow officer must use a title agency escrow account to close title insurance transactions.  The transaction must be closed in the title agent’s name. 

E.       Neither the sole owner nor individual partners of a Title Insurance Agent, doing business as an Individual or Partnership, are required to be licensed as an Escrow Officer, only the employees of such Agents who perform any or all of the duties of an Escrow Officer. Each corporate officer and employee of a Title Agent, doing business as an Entity, who performs any or all of the duties of an Escrow Officer must obtain an Escrow Officer’s license. 

II.    ISSUANCE 

To appoint an individual to act as Escrow Officer for any Title Insurance Agent/Direct Operation, the following must be filed with the Title Division of the Department: 

        A.    An original application for Escrow Officer’s license (Sections A and B). 

                1.     Each application shall be completed in full before it is submitted to the Department. 

                2.     The signature appearing on Section B of the application must be the signature of the Title Insurance Agent/Direct Operation. 

        B.    Non-refundable license fee of $35.00. 

        C.    The proper Texas Escrow Officer’s Schedule Bond or in lieu thereof a cash deposit or irrevocable letter of credit issued by a financial institution in this state insured by an agency of the United States Government (or securities approved by the Department), procured at the expense of the Title Insurance Agent/Direct Operation. 

                1.     The aggregate amount is to be determined by multiplying the number of Escrow Officers by $5,000 but not exceeding $50,000. 

                2.     The bond form will provide that the entire penal sum shall be applicable for losses caused by any one or all of the Escrow Officers covered by the obligation. 

III.   ADDITIONAL APPOINTMENTS 

The Department must be notified immediately whenever a Title Insurance Agent/Direct Operation or attorney licensed as an Escrow Officer employs an additional individual to act as Escrow Officer, and the following forms are required by the Department: 

        A.    An original application for Escrow Officer’s license having the same specifications as listed under ISSUANCE. 

        B.    Non-refundable license fee of $35.00. 

        C.    An original rider or endorsement to the Texas Escrow Officer’s Schedule Bond adding the individual to the schedule and increasing the penalty thereof by $5,000 if necessary. 

IV.   CANCELLATION 

        A.    Whenever an individual ceases to act as Escrow Officer for any Title Insurance Agent/Direct Operation written notice shall be sent immediately to the Escrow Officer and to the Department with the following:  

1.         Completed notification of cancellation (reverse side of Certificate of License), or a sworn statement that the Certificate of License has been lost or misplaced and a written statement indicating the reason for cancellation and the date the cancellation is effective. 

2.         An original rider to the Texas Escrow Officer’s Schedule Bond deleting the individual from the schedule and decreasing the penalty thereof by $5,000, if necessary. 

B.    An escrow officer may voluntarily surrender his license at any time by giving notice to the Department and submitting their current, original escrow officer license or a sworn statement that the license has been lost or misplaced or he has been unable to obtain the original license from the Title Agent/Direct Operation. 

        C.    The license will be cancelled by the Department upon receipt of the items in A.1 or B notwithstanding the receipt of an original rider to the Escrow Officer’s Schedule Bond. 

V.    RENEWAL 

        A.    Escrow Officer licenses shall, on the date of expiration, be renewed pursuant to Sec. 1A.(j) of Article 21.01-2, Texas Insurance Code. Escrow Officer Licenses will be renewed with an expiration date to coincide with the expiration date of the license of the Title Agent/Direct Operation for which the Escrow Officer is licensed. 

        B.    For all Escrow Officer Licenses renewed: Escrow Officer Licenses expire on the same date as the Title Insurance Agent/Direct Operation for which the Escrow Officer is licensed. To renew any license, on or before the expiration date of the license, the Title Insurance Agent/Direct Operation must submit the following to the Department on behalf of each Escrow Officer whose license is expiring: 

                1.     The original Title Insurance Escrow Officer’s License renewal form provided by the Department. 

                2.     Non-refundable renewal fee of $35.00. If a license is renewed for less than two (2) years the non-refundable renewal fee shall be prorated on a monthly basis. 

        C.    Failure of a Title Insurance Agent/Direct Operation to submit any of the required renewal forms for any Escrow Officer on or before the expiration date of the license, results in automatic expiration of the respective license, and the proper rider to the Texas Escrow Officer’s Bond will then be required. 

        D.    If an Escrow Officer’s License is expired for not longer than 90 days, the license may be renewed by submitting the renewal form and paying the required non-refundable renewal fee and a fee of one half (1/2) of the initial license fee. 

        E.     If the Escrow Officer’s License is expired for more than 90 days, the license may not be renewed. An original application for Escrow Officer’s license must be submitted with the same requirements as listed under ISSUANCE. 

VI.  CHANGE IN EMPLOYMENT STATUS OF AN ESCROW OFFICER WHO REMAINS LICENSED WITH THE SAME TITLE AGENT OR DIRECT OPERATION 

Upon a change in the employment status of a licensed escrow officer with the same title agent or direct operation, joint written notification must be made to the Title Division of the Texas Department of Insurance by the licensed escrow officer, the title agent or direct operation and the employer attorney, if applicable, within fifteen (15) calendar days of the change in employment status.  The written notification must be acknowledged and sworn to by the escrow officer, the title agent or direct operation and the employer attorney, if applicable. 

VII.      CHANGE OF RESIDENCE ADDRESS OF A LICENSED ESCROW OFFICER

Upon a change in the residence address of a licensed escrow officer, written notification must be made to the Title Division of the Texas Department of Insurance by the licensed escrow officer.  Written notification may be by letter, fax, or e-mail and must include the new residence address as well as new residence phone number if applicable.

1. Completed application for a Direct Operation License, signed by a corporate officer of the Title Insurance Company. 2. Non-refundable license fee of $50.00. 3. Executed original Abstract Plant Form. 4. List of all branch office addresses and telephone numbers. 5. Direct Operation's bond or in lieu thereof a cash deposit or irrevocable letter(s) of credit issued by a financial institution in this state insured by an agency of the United States Government (or securities approved by the Department) in the sum of the greater of Ten Thousand Dollars ($10,000) or an amount equal to ten percent (10%) of the gross premium written by the direct operation in accordance with the latest statistical report to the Department but not to exceed One Hundred Thousand Dollars ($100,000).

1. Completed Notification of Appointment Cancellation (reverse side of Certificate of License), or a letter canceling the Direct Operation License. 2. A transmittal letter indicating the reason for cancellation and the date the cancellation is to become effective.

IV. RENEWAL

A. Direct Operation licenses shall, on the date of expiration, be renewed pursuant to Sec. 1A.(j) of Article 21.01-2, Texas Insurance Code. Direct Operation Licenses will be renewed for a period of not more than two years and expire on the date designated by the Title Division of the Department.

B. For all licenses renewed: Direct Operation Licenses expire on the first day of the month two years after their issuance. To renew any license, on or before the expiration date of the license, the Title Insurance Company must submit the following to the Department on behalf of all Direct Operations licenses which they hold:

1. The original application for renewal of Direct Operation’s license provided by the Department.

2. Non-refundable renewal fee of $35.00. If a license is renewed for less than two (2) years the non-refundable renewal fee shall be prorated on a monthly basis.

C. Failure of a Title Insurance Company to submit any of the above forms for Direct Operation on or before the expiration date of the license, results in automatic expiration of the respective license.

D. If a Direct Operation’s license is expired for no longer than 90 days, the license may be renewed by submitting the renewal form and paying the required non-refundable renewal fee and a fee of one half (1/2) of the initial license fee.

E. If a Direct Operation’s license is expired for more than 90 days, the license may not be renewed.

F. If the amount of the Bond or other security required in Article 9.38, Texas Insurance Code, has increased from the Bond or other security on file with the Department, a new Bond, Rider, Endorsement, increase in cash, or an amended letter of credit in the amount required by Article 9.38 shall be filed.

1. the Department, addressed to the Texas Department of Insurance, Title Division. Post Office Box 149104, Austin, Texas 78714-9104; 2. all Title Insurance Companies for which the Title Agent/Direct Operation holds an appointment and is currently licensed; and 3. the Public, by public announcement in a local publication of general circulation.

A. The Agent/Direct Operation and Company must conduct a final audit of the Agent's/Direct Operation's trust fund accounts, the records pertaining thereto and the unused forms in Agent's/Direct Operation's possession, pursuant to the requirements of Articles 9.39 and 9.40, Texas Insurance Code. B. The Agent/Direct Operation must provide a final accounting of all funds held in its escrow account for the State of Texas Policy Guaranty Fees and Recoupment Charge funds. Such final accounting together with a final disbursement of any due funds shall be made to the Texas Title Insurance Guaranty Association c/o General Counsel for the Texas Title Insurance Guaranty Association, 301 Congress, Suite 800, Austin, Texas 78701. C. The final audit and final accounting required by this section must be delivered to the Department prior to an Agent's/Direct Operation's surrender of its license. If an Agent/Direct Operation fails to complete and submit such audit and accounting, it shall be the responsibility of the respective Companies to use their best efforts to complete and submit such final audits and accountings to the Department. D. The expenses of such final audit and accounting shall be borne by the respective Company(ies) in proportion to their share of premiums for the twelve month period immediately preceding the date of final audit and accounting.

A. The Agent/Direct Operation must surrender all files, together with a list of all pending files and outstanding commitments, to the appropriate Companies. The Agent/Direct Operation must send written notice to all interested parties in pending transactions that the appropriate Companies have custody and control of such files. Such notice to interested parties shall be provided on a Notice of Cessation Form Ti-100, no later than forty-five (45) days prior to its final date of operation, with a copy sent to the appropriate Company and a copy retained in the appropriate Guaranty file. B. The Agent/Direct Operation shall transfer all escrow accounts and investment accounts, which have not been fully disbursed, to the appropriate Companies for the benefit of the parties to pending transactions and the general public. Such transfer shall include a listing of the sources of all transferred funds, and a list of pending transactions. A copy of such list of pending transactions shall be provided to the Department.

        A.    “Association” means the Texas Title Insurance Guaranty Association. 

        B.    “Board” means the Board of Directors of the Association. 

        C.    “Policy Guaranty Fee” means that sum of money established by the Board pursuant to Section 6, Article 9.48, Insurance Code, which is required to be remitted to the Association upon the issuance of each owner policy and each mortgagee policy of title insurance issued in the State of Texas in accordance with the procedures as set forth in these administrative rules. 

II.    Remittance Procedures 

        A.    Each policy guaranty fee shall be collected directly from the purchaser of each owner and mortgagee policy at the closing of the transaction and such itemized charge shall be disclosed on the settlement statement and designated thereon “State of Texas Policy Guaranty Fee”. Upon collection of the premium for each owner and mortgagee policy of title insurance, the issuing Title Insurance Agent/Direct Operation, or if no Agent/Direct Operation actually issues, the issuing Title Insurance Company shall forthwith deposit all policy guaranty fees in the amount determined by the Board into an audited escrow or trust account. Each issuing Agent/Direct Operation or issuing Company is responsible for the actual remittance of these fees to the Association. 

        B.    No Title Insurance Agent/Direct Operation or Title Insurance Company may utilize the policy guaranty fees so maintained for any purpose other than the actual payment of all policy guaranty fees to the Association quarterly. The schedule of remittance is as follows:

Calendar Quarter Ending March 31 June 30 September 30 December 31

Remittance Due Date May 1 August 1 November 1 February 1