(1) The title insurer engaging or employing the title insurance agency must file with the department, on printed forms furnished by the department, an application certifying that the proposed title insurance agency meets all of the following requirements:(a) The agency must have obtained a fidelity bond in an amount, not less than $50,000, acceptable to the insurer appointing the agency. If a fidelity bond is unavailable generally, the department must adopt rules for alternative methods to comply with this paragraph.
(b) The agency must have obtained errors and omissions insurance in an amount acceptable to the insurer appointing the agency. The amount of the coverage may not be less than $250,000 per claim and an aggregate limit with a deductible no greater than $10,000. If errors and omissions insurance is unavailable generally, the department must adopt rules for alternative methods to comply with this paragraph.
(2) This section does not exempt title insurance agents from the appointment requirements of part I.
