Title Producer Bond Instructions and Sample Bond Form
Title Producer Bond Instructions
The surety bond form must be completed by a Surety as indicated in number 11 below. The Form must be retained in title producers records at all times while holding a title license in the District. There are three parts of a Title Producer Surety Bond transaction. One part of the transaction is carried out by the entity requiring the bond. This entity is called the OBLIGEE. In this case it is The District of Columbia Department of Insurance, Securities and Banking (DISB). The second entity to the transaction is the PRINCIPAL. The principal is the entity/person whom will perform the contractual obligation set forth in the bond form. The third party to the transaction is the SURETY. This entity is the one who will be insuring the bond.
Surety bonds or related certificates of insurance may only be cancelled or non-renewed in accordance to reasons set forth in DCMR 26, chapter 3 - section 300.2; and only after 30 days’ notice, in writing, has been issued by the surety.
- All areas of the Bond form must be completed in its entirety.
- PRINCIPAL’S name must match that which will appear on the license
- Bond number is to be assigned by the Surety Company
- Bond amount shall be underwritten for the statutory required amount of $200,000
- Insurance Company and Principal’s corporate seal must be affixed on the surety Bond
- This bond is continuous and irrevocable
- Maximum issuance period is 3 years
- Sign and date all applicable areas of the bond form
- The bond date and duration should be the date of issuance and the duration should read: “Until Cancelled”
- Physical address - Must be a physical location
- The Department requires that the bond be executed with a Surety with an acceptable bond rating; who is licensed or authorized to do business in the District of Columbia, and who is listed in Circular 570 of the United States Department of Treasury.
- You should not send in any bond form. Only forward a signed and completed “Title Individual/Business Entity Financial Responsibility Certification.” Follow this link to access this form: disb.dc.gov/node/736672
A sample bond form is included for your information.