Virginia Law: Administrative Code

When we perform the annual escrow RESA audits, we also audit to the Administrative Code Title 14 Insurance Agency 5. State Corporation Commission, Bureau of Insurance specifications as noted below.

14VAC5-395-20. Definitions

"Designated licensed producer" means an individual who (i) possesses a valid license to sell, solicit, or negotiate contracts of title insurance in the Commonwealth; (ii) is appointed; (iii) is an officer, director, or employee of the business entity; and (iv) is responsible for the business entity's compliance with the insurance laws, rules and regulations of this Commonwealth.

"Employee" means an individual (i) whose manner and means or performance of work are subject to the right of control of, or are controlled by, a person and (ii) whose compensation for federal income tax purposes is reported, or required to be reported, on a W-2 form issued by the controlling person.

14VAC5-395-30. Registration.

14VAC5-395-40. Insurance and bonding requirements. The settlement agent has, and thereafter shall keep, in force for as long as they are acting as a settlement agent. 

14VAC5-395-50. Audits. D. Every settlement agent shall make a good faith effort to disburse funds in its possession and return the funds to the rightful owner, and escheat annually to the Virginia Department of Treasury those funds for which the owner is unlocatable.

14VAC5-395-60. Separate fiduciary trust account. A. Every settlement agent shall maintain a separate fiduciary trust account for the purpose of handling funds received in connection with escrow [recording/premium], closing, or settlement services involving real estate located only in this Commonwealth.

14VAC5-395-70. Reporting requirements. Within 30 days following the occurrence of any of the following events, a settlement agent other than a title insurance company shall report to the bureau if:

E. A settlement agent shall immediately notify the bureau following the loss of (i) a designated licensed producer, (ii) required insurance coverage, or (iii) required bond coverage.

F. A settlement agent or former settlement agent other than a title insurance company shall provide the following information to the bureau within 10 days after such person's title insurance license is surrendered, terminated, suspended, or revoked or has lapsed by operation of law, or the licensed and registered business is otherwise closed: (i) the names, addresses, telephone numbers, fax numbers, and email addresses of a designated contact person; (ii) the location of the settlement agent's or former settlement agent's records; and (iii) any additional information that the bureau may reasonably require. A settlement agent or former settlement agent other than a title insurance company shall maintain current information with the bureau until all escrow funds are disbursed and all the title policies are issued.

G. Sixty days prior to ceasing business, a settlement agent shall provide notice to the bureau of its intent to cease conducting settlements and the anticipated date of business termination.

14VAC5-395-75. Operating requirements. 2. A settlement agent shall reconcile its escrow accounts monthly.

4. A settlement agent shall not charge duplicative or padded fees for escrow, closing, or settlement services.

7. A designated licensed producer shall be appointed by the same title insurance company as its employer settlement agent.

14VAC5-395-80. Enforcement. Failure to comply with any provision of Chapter 10 or this chapter may result in penalties, license revocation or suspension, the entry of a cease and desist order, restitution, or other enforcement action.