A Tennessee title insurance agent bond is a $25,000 surety bond that every licensed title insurance agent must file with the Tennessee Commissioner of Commerce and Insurance within 30 days after the license is issued. Under Tenn. Code Ann. 56-35-202, each title insurance agent “shall, within thirty (30) days after the date the license is issued, file with the commissioner a bond in the amount of twenty-five thousand dollars ($25,000), or cash and/or securities in like amount.” The bond is made payable to the State of Tennessee for the use and benefit of all persons who suffer pecuniary loss, and it covers loss in a real estate transaction, involving the solicitation or issuance of title insurance, caused by fraud, dishonesty, theft, embezzlement, or willful misconduct on the part of the agent. It must be executed by a surety company authorized to do business in Tennessee, on a form acceptable to the commissioner, and kept in force for as long as the license remains in effect. This is the title insurance agent bond regulated by the Department of Commerce and Insurance. It is not the Tennessee bonded (lost) vehicle title bond, which is a separate motor vehicle requirement handled by the Department of Revenue.
| Item | Detail |
|---|---|
| Who requires it | The Tennessee Department of Commerce and Insurance, through the Commissioner |
| Who must post it | Every licensed title insurance agent (also called a title insurance producer) under Title 56, Chapter 35 |
| Governing law | Tenn. Code Ann. 56-35-202 (bond or deposit required; suits on bond); Tenn. Code Ann. 56-35-201 (agents to be licensed; examination; other requirements); Title 56, Chapter 35 (Title Insurance Law) |
| Official form | Tennessee Department of Commerce and Insurance “Title Producer Bond” form, filed with the license application. [VERIFY against Tennessee Department of Commerce and Insurance: confirm the exact current form name, version, and whether it must be filed electronically with a power of attorney.] |
| Bond amount | $25,000, or cash and/or securities in like amount |
| Premium basis | [CLIENT FLAG: insert All n One premium structure, e.g. percentage of the $25,000 bond amount by credit tier] |
| Coverage term | Continuous. The bond must be maintained for as long as the title insurance agent’s license remains in effect. |
| Obligee | The State of Tennessee, for the use and benefit of all persons who suffer pecuniary loss. The bond is filed with the Commissioner. |
How much is the bond, and how is the amount set?
Tennessee sets a single flat amount. Unlike states that size a title bond to escrow balances, Tenn. Code Ann. 56-35-202 fixes the amount at $25,000 for every licensed title insurance agent. The statute also lets you satisfy the requirement with cash and/or securities in the same amount instead of a surety bond.
| Situation | Amount required |
|---|---|
| Every licensed title insurance agent | $25,000 surety bond, filed within 30 days after the license is issued |
| Cash or securities in lieu of a bond | Cash and/or securities in like amount ($25,000) deposited with the commissioner |
The $25,000 figure is set by statute, so it does not change with your escrow volume. [VERIFY against Tennessee Department of Commerce and Insurance: confirm whether the $25,000 bond is required per individual title insurance agent or whether an agency files a single bond covering its agents.]
What does the bond cover?
The bond guarantees that the title insurance agent handles real estate and title insurance transactions honestly, and it gives harmed parties a source of recovery if the agent does not. Under Tenn. Code Ann. 56-35-202 the bond is conditioned to pay for pecuniary loss in a real estate transaction, involving the solicitation or issuance of title insurance, caused by any act of fraud, dishonesty, theft, embezzlement, or willful misconduct on the part of the title insurance agent.
Key points about coverage:
- It is payable to the State of Tennessee for the use and benefit of all persons who suffer pecuniary loss. Any person suffering that loss may bring suit on the bond in the person’s own name in any court of competent jurisdiction in Tennessee.
- It responds to fraud, dishonesty, theft, embezzlement, or willful misconduct by the agent in a real estate transaction involving title insurance. That commonly includes the mishandling of escrow, closing, or settlement funds.
- It is financial security for the licensing law, not insurance for the agent. If the surety pays a valid claim, the title insurance agent must repay the surety.
- The statute allows cash and/or securities in like amount to be deposited with the commissioner instead of a surety bond. A surety bond is usually preferred because it does not tie up $25,000 of your own cash or securities. [VERIFY against Tennessee Department of Commerce and Insurance: confirm the accepted forms of cash or securities and how they are deposited.]
How much does the bond cost?
You do not pay the full $25,000. You pay a premium, which is a small percentage of the bond amount and is set mainly by your personal credit. Because Tennessee fixes the bond at $25,000, the amount does not change, so your premium depends on your credit and business history rather than on escrow volume.
[CLIENT FLAG: insert All n One Insurance pricing for the Tennessee title insurance agent bond, for example a premium rate range by credit tier and one worked example such as “a $25,000 bond for $X per year.” We do not publish a premium figure until All n One provides it. Please also confirm whether this bond is quoted as a flat fee or as a percentage of the bond amount.]
Is this the same as a bonded (lost) vehicle title?
No. These are two different bonds handled by two different Tennessee agencies.
- The Tennessee title insurance agent bond on this page is required under Tenn. Code Ann. 56-35-202 and regulated by the Department of Commerce and Insurance. It lets a title insurance agent be licensed and it protects people harmed in real estate and title insurance transactions.
- A bonded title, also called a lost title bond or certificate of title surety bond, is a Tennessee Department of Revenue requirement for motor vehicles. It is for a person who owns a vehicle but cannot prove ownership with a proper title, and it lets the state issue a certificate of title. It has nothing to do with title insurance or real estate closings. It is authorized under Tenn. Code Ann. 55-3-103, the amount is generally set at 1.5 times the vehicle’s fair market value, and it is handled through the Department of Revenue’s Special Investigations Section and your local county clerk. [VERIFY against Tennessee Department of Revenue: confirm the current bond amount basis (1.5 times fair market value), the value and age thresholds that trigger the bond, and the three-year retention period before describing the vehicle bonded title in more detail.]
If you were sent here looking for the bonded title for a car, truck, or trailer, this is not that bond.
How do I get bonded and file for my Tennessee title insurance agent license?
- Get licensed as a title insurance agent. Meet the licensing and examination requirements under Tenn. Code Ann. 56-35-201 and the Tennessee insurance producer licensing law, and get appointed by a title insurer.
- Get a surety bond quote. Apply with All n One Insurance for the $25,000 bond. Approval and premium depend mainly on your credit.
- Receive your bond on the official form. Tennessee uses the Department of Commerce and Insurance “Title Producer Bond” form, executed by a surety company authorized to do business in Tennessee. [VERIFY against Tennessee Department of Commerce and Insurance: confirm the current form name and version.]
- Include the power of attorney. Submit the completed bond form along with the surety’s power of attorney. [VERIFY against Tennessee Department of Commerce and Insurance: confirm the power of attorney is required with the bond.]
- File the bond within 30 days of licensing. Tenn. Code Ann. 56-35-202 requires the bond to be filed with the Commissioner within 30 days after the license is issued. [VERIFY against Tennessee Department of Commerce and Insurance: confirm whether the bond is filed electronically with the license application or mailed to the Department.]
- Keep the bond in force. The bond must be maintained for as long as your title insurance agent license remains in effect.
Frequently asked questions
Who has to post a Tennessee title insurance agent bond?
Every licensed title insurance agent, also called a title insurance producer, under Title 56, Chapter 35. Tenn. Code Ann. 56-35-202 requires each licensed title insurance agent to file a $25,000 bond with the Commissioner within 30 days after the license is issued.
How much is the Tennessee title insurance agent bond?
$25,000. The amount is set by statute in Tenn. Code Ann. 56-35-202 and does not change with your escrow or closing volume. You may instead deposit cash and/or securities in the same amount with the commissioner.
Who is protected by the bond?
The State of Tennessee, for the use and benefit of all persons who suffer pecuniary loss. Any person who suffers that loss may sue on the bond in their own name in a Tennessee court.
What does the bond cover?
Pecuniary loss in a real estate transaction, involving the solicitation or issuance of title insurance, caused by fraud, dishonesty, theft, embezzlement, or willful misconduct by the title insurance agent. This commonly includes mishandling of escrow, closing, or settlement funds.
Can I deposit something other than a surety bond?
Yes. Tenn. Code Ann. 56-35-202 lets you file cash and/or securities in like amount ($25,000) with the commissioner instead of a surety bond. A surety bond is usually preferred because it does not tie up your own $25,000. [VERIFY against Tennessee Department of Commerce and Insurance: confirm the accepted forms of cash or securities and how they are deposited.]
When and where do I file the bond?
Within 30 days after your license is issued, you file the bond with the Commissioner on the Department of Commerce and Insurance “Title Producer Bond” form. [VERIFY against Tennessee Department of Commerce and Insurance: confirm the current form version and whether filing is electronic with the license application.]
How long does the bond last?
It is continuous. The bond, or the cash and/or securities, must be maintained for as long as your title insurance agent license remains in effect.
Is this the same as a bonded title for a vehicle?
No. The bonded (lost) vehicle title bond is a Tennessee Department of Revenue requirement for proving ownership of a vehicle under Tenn. Code Ann. 55-3-103. The bond on this page is a title insurance agent bond regulated by the Department of Commerce and Insurance and has nothing to do with vehicles.
