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Surety Bond for CA Escrow Agents Changes




California is proposing changes in the  bond form for the escrow agents surety bond.

As reported by the Surety Association of America, The California Department of Corporations (Department) has proposed rules to incorporate its existing bond form for escrow agents in the regulations for such entities. Of note, the proposed rules would revise the current form, to require that the notice of cancellation surety companies must provide to the Department also be sent to the Escrow Agents’ Fidelity Corporation (Corporation). The Department explains that this would be beneficial for processing claims made to the Corporation, especially in light of a recent increase in claims due to the current state of the economy. The Department also believes this requirement would protect the public interest.




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