General FAQs
May an applicant use the word ‘Title’ in the name of their company?
No. Title companies are regulated by the Office of the Insurance Commissioner.
Do I need to take and pass the escrow officer test before filing my application and paying my application fee to the department?
Yes.
NOTE: If your proposed Designated Escrow Officer is an attorney licensed to practice law in Washington, you can provide evidence of membership in the Washington Bar Association in lieu of taking and passing the escrow officer test. See WAC 208-680-145
Does my Designated Escrow Officer need to supervise onsite?
Yes. Your Designated Escrow Officer is required to supervise onsite. NOTE: Your Designated Escrow Officer may supervise more than one licensed location with the Director’s prior consent.
Are there any licensing exceptions for attorneys licensed to practice law in Washington?
Yes. See WAC 208-680-045.
Bond/Insurance FAQs Fidelity
When does my fidelity policy need to be compliant?
You must submit a compliant policy with your application for an Escrow Agent license. Once licensed, you need to submit a compliant policy by the time your fidelity policy renews or by December 31, whichever date is earlier.
Where can I get a compliant policy?
The Department will accept policies from insurers that are able to write language that complies with RCW 18.44. The Department cannot recommend any insurer over another, however there are a small number of companies that the Department has been working with to arrive at mutually acceptable language. Those companies are Lloyds, Travelers, and Markel (for an excess coverage policy). The Department will also accept a combination of policies that together achieve compliance with the requirements.
Can a parent company’s fidelity policy be amended to cover the applicant?
No. Fidelity insurance must be in the applicant name only – “umbrella policies” are not acceptable.
How much fidelity coverage am I obligated to maintain?
A fidelity bond providing coverage in the aggregate amount of one million dollars with a deductible no greater than ten thousand dollars covering each corporate officer, partner, escrow officer, and employee of the applicant engaged in escrow transactions. See RCW 18.44.201
What are the compliant policies available?
Fidelity policies vary between insurers. They may have unacceptable language in the body of the policy, the existing endorsements, or both. In addition, the exclusions or other language may impact different business types in different ways. While the Department does not endorse or recommend specific companies or products, below are the compliant policy options by insurer that the Department is currently aware of.
Travelers
There are currently two options based on how you compensate the following individuals: owners, controlling persons, officers, designated escrow officer and branch designated escrow officer, or other persons subject to chapter 18.44 RCW.
- If all of the individuals listed above are W-2 employees or 1099 Independent Contractors, you must provide:
- Your complete policy that includes the new approved endorsements and excludes unacceptable endorsements
- Declaration of Employee Status Form
(original signed document required at application and every year thereafter upon renewal)- If ALL of the individuals listed above are NOT W-2 employees or 1099 Independent Contractors, you need to provide:
- Your complete policy that includes the new approved endorsements and excludes unacceptable endorsements
- Excess coverage policy. Currently, Markel is an insurer that has indicated they will provide an acceptable excess coverage policy to increase coverage for owners to $1 million.
Lloyds
There are currently two options for Lloyds policies, regardless of what type of company you have.
- Provide the new Washington Endorsement - Lloyds Version OR
- Provide a complete policy that includes new approved endorsements and excludes unacceptable endorsements
Other
The Department will accept policies or a combination of policies from other insurers if they are compliant.
Download the Washington Endorsement for an endorsement that when added to a standard policy creates a compliant policy. Please note that it will take additional time to review and address any identified concerns with policies from companies that the Department has not reviewed before.
How will I know what endorsements need to be added or deleted from my policy?
You will need to work with your insurance agent. If your insurance agent does not already know the requirements, they may contact a DFI representative for assistance.
What about the cost of these policies?
Licensees must have fidelity policies that are compliant with RCW 18.44. The Department has explored many different options and has addressed many coverage concerns directly with existing insurers in an effort to ensure that affordable policies are available.
Surety Bond
Am I required to maintain a surety bond?
- If your Fidelity policy has a deductible, you need a $10,000 surety bond
- If your Fidelity policy does not have a deductible you do not need the surety bond but your Certificate of Insurance and policy must indicate no deductible
- See RCW 18.44.201
Errors and Omissions
How much errors and omissions coverage am I obligated to maintain?
An errors and omissions policy issued to the escrow agent providing coverage in the minimum aggregate amount of fifty thousand dollars. See RCW 18.44.201
Can a parent company’s errors and omissions policy be amended to cover the applicant?
Yes. Errors and Omissions insurance can be in the applicant’s name or both parent and applicant’s name.