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Attorneys as Title Insurance Agents

new law effective May 10, 2016

Contact: Reyn Norman, General Counsel

(334) 241-4116

5/26/2016

With the passage of House Bill 129 in the 2016 Regular Session of the Alabama Legislature, now Alabama Act No. 2016-296, attorneys licensed by the Alabama State Bar Association are exempt from the licensing requirements of the title insurance agent law.  If a licensed attorney chooses to do business through an entity law firm, this department will also consider the entity law firm as exempt from the title insurance agent licensing requirements. 

 

Please note, however, if a licensed attorney chooses to do title insurance agent business through an entity separate and apart from a law firm, that entity will be subject to the title insurance agent licensing requirements and at least one individual licensed as a title insurance agent must be designated as responsible for the entity’s compliance with all applicable laws, rules and regulations.  This individual is also designated to act as signatory on title insurance issued by the entity agent.  An exempt attorney cannot be so designated unless the attorney submits to becoming licensed as a title insurance agent. 

 

Additionally, if an individual who is not a licensed attorney seeks to do business as a title insurance agent through an entity law firm, then the entity law firm would be subject to the title insurance agent licensing requirements.  In such a case, the non-attorney individual title insurance agent can be designated as the responsible party for the entity law firm. 

 

Title insurance agents who are now exempt from the title insurance agent licensing requirements can request the immediate cancellation of the title insurance agent license by faxing or mailing a letter to Producer Licensing Division requesting cancellation of license, or they can allow the license to expire by not renewing it.  Title insurance companies can cancel a title insurance agent appointment by using the NIPR Interactive Appointments and Terminations application. If you do not have a PDB login for your company please contact the NIPR Marketing Department at 816-783-8467 or marketing@nipr.com.

 

Reminder: Individuals previously licensed as title insurance agents in this state, whether by having passed the examination or by being exempt from the examination, are exempt from the examination requirements should they subsequently seek to again become licensed as title insurance agents, but only if the application for license is received within 12 months of the date the previous license was cancelled.