Who is responsible for maintaining an inventory of policy numbers allocated to each title agent?

The correct answer is that the title insurer is responsible for maintaining an inventory of policy numbers allocated to each title agent. This responsibility falls to the title insurer because they oversee the issuance of title insurance policies and manage the relationships with title agents. By keeping an inventory of policy numbers, the title insurer ensures that each title agent is provided with a unique set of policy numbers to use in their operations, which is essential for tracking and record-keeping purposes.

Title agents act as intermediaries who sell and issue title insurance policies on behalf of the title insurer. While they may maintain their own records, the ultimate responsibility for the oversight and allocation of policy numbers rests with the title insurer. This centralized control helps maintain order and integrity in the issuance of title policies, mitigates risks of duplication, and assists in regulatory compliance.

The state insurance department’s role typically involves regulation and oversight of the industry as a whole but does not extend to the day-to-day management of policy numbers allocated to agents. Similarly, financial institutions may be involved in real estate transactions but are not responsible for title insurance operations. Therefore, the title insurer plays a pivotal role by managing and allocating these critical elements within the title insurance process.