As of January 1, 2026, Kansas will standardize the surety bond or irrevocable letter of credit requirement for title insurance producers handling escrow, settlement, or closing accounts to $100,000, regardless of the county’s population size. This means the previous tiered system based on county population will be eliminated.
Here are some key aspects of this requirement:
- Who: Title insurance agents and agencies in Kansas who manage escrow, settlement, or closing accounts.
- What: A surety bond or irrevocable letter of credit.
- Amount: $100,000.
- When: Effective January 1, 2026.
- Issued by: An insurance company or financial institution authorized in Kansas.
- Why: To secure the performance of duties and obligations for these services and protect consumers from losses due to mishandling of funds. It benefits those who suffer a loss if funds are converted or misappropriated.
- Termination: A surety bond requires 30 days prior written notice to the Commissioner for termination. An irrevocable letter of credit renews automatically unless non-renewal notice is given at least 30 days before expiration.
- Exemption: Those not handling these accounts must submit a letter to the Kansas Department of Insurance stating this. KDOI sent an Email to all Title Licensees on June 18, 2025, stating that if you are not writing escrow, settlements, or closings, please make sure you have a letter on file stating that you are not performing these services, no later than July 1, 2025. Send those letters to KDOI.RF@ks.gov
This standardization simplifies regulations and aims to increase transparency and financial accountability.
Click here to read KS Senate Bill 42.
Click here to see breakdown of other changes in Senate Bill 42.