What must a title insurer do if it terminates an agency contract with a title agent?

When a title insurer terminates an agency contract with a title agent, it is required to notify the director of the department of insurance within a specific timeframe, typically 7 days. This requirement is in place to ensure that regulatory authorities are kept informed about the status of title agents operating in the state. This not only aids in maintaining oversight of the industry but also protects consumers by ensuring that only authorized and compliant title agents are operating.

Being transparent with the department of insurance is crucial, as it helps monitor the practices within the industry, ensures that title agents are adhering to legal and ethical standards, and allows for timely intervention if necessary. This notification process is a part of the regulatory framework designed to uphold the integrity of the title insurance market and protect all parties involved, including consumers, insurers, and agents.

The other options do not align with the legal requirements or best practices for handling the termination of an agency contract.