How frequently must a title insurer conduct an on-site audit of each title agent?

A title insurer must conduct an on-site audit of each title agent at least once every year to ensure compliance with regulations and to maintain oversight of the title agent's operations. This frequency is important for several reasons.

Annual audits help to identify any potential discrepancies, assess the agent's adherence to statutory requirements, and evaluate the overall financial health and ethical practices of the title agent. Regular oversight acts as a preventive measure against fraud and mismanagement, promoting a transparent and trustworthy environment in the title insurance industry.

By setting this requirement, regulators aim to uphold industry standards and protect consumers, ensuring that title agents operate within the bounds of their obligations. This annual frequency allows for timely recognition of any issues that could affect service delivery and consumer protection, thereby fostering a more reliable title insurance framework.