Washington HB 2564 revises the terms of the fidelity bond required from escrow agents. Under prior law, the fidelity bond only covered any fraudulent or dishonest act of the escrow agent’s employees or officers as defined in the bond. The new law now requires the fidelity bond to cover the fraudulent or dishonest acts of the escrow agent’s corporate officers, partners, sole practitioners, escrow officers, and employees of the applicant engaged in escrow transactions acting alone or in collusion with others. Under prior law, the bond was for the sole benefit of the escrow agent and the surety is not liable under the bond to any other party. The new law provides an exception to the bond being for the sole benefit of the escrow agent. If a corporate officer, partner or sole practitioner commits the fraudulent or dishonest act, then the bond shall be for the benefit of the harmed consumer. The new law also requires that the fidelity bond must be maintained until all accounts have been reconciled and the agent’s trust account balance is zero. The new law provides that if the fidelity bond coverage is not “reasonably available,” then the Director of Financial Institutions (Director) may develop rules for a surety bond requirement. The bond amounts required in existing law are unchanged. Escrow agents must obtain a $200,000 fidelity bond that has a minimum $10,000 deductible, a $50,000 error and omissions insurance policy or a $50,000 deposit of cash or securities, and a $10,000 surety bond.