As of July 1, 2016, Bond of Underwritten Title Company changes from a cash deposit of $7,500 per county to a Surety Bond or Deposit amount of $50,000 or $100,000
California Assembly Bill 704 effects several changes that effect Underwritten Title Companies (UTCs). Current law requires a $7,500 cash deposit per county be deposited with the state Treasurer. As of July 1, 2016, financial security in the form of a surety bond of underwritten title company (UTC) or a cash deposit of $100,000 or $50,000. The amount of the bond depends on the aggregate number of documents filed in the previous calendar year in the counties where the UTC is licensed. The department of insurance will dictation what bond amount will be required. Posting a surety bond relives the UTC of having to deposit cash or securities with the State.
The California Land Title Association has more information concerning AB704. The UTC Surety Bond runs to the California Department of Insurance.