(1) A person shall not act in the capacity of a title insurance agent and a title insurer shall not contract with any person to act in the capacity of a title insurance agent with respect to risks located in this state unless the person is a licensed title insurance agent in this state pursuant to the Insurance Producers Licensing Act.
(2)(a) Every title insurance agent licensed in this state shall:
(i) Exclude or eliminate the word insurer or underwriter or similar term from its agency's name; and
(ii) Provide, in a timely fashion, each title insurer with which it places business any information the title insurer requests in order to comply with reporting requirements of the director.
(b) A title insurance agent licensed in this state immediately prior to September 13, 1997, shall be deemed on and after such date to be in compliance with the requirements of this subsection.
(3) The director shall require the title insurance agent and any bona fide employee of the title insurance agent handling escrow or security deposits to maintain a surety bond, letter of credit, certificate of deposit, or deposit of cash or securities in an amount not less than one hundred thousand dollars covering all of the title insurance agent's employees.
(4) If the title insurance agent delegates the title search to a third party, the third party shall provide the title insurance agent and the title insurer with access to and the right to copy all accounts and records maintained by the third party with respect to title insurance business placed with the title insurer.