FL H1229

Directs the Department of Financial Services to review the regulatory structure of the title insurance industry and submit findings and recommendations to the Legislature by December 31, 2011, including whether to consolidate all title insurance regulation under one department.

Repeals section 627.7865 (assessments against title insurers) and creates new rehabilitation procedures for title insurers in receivership, requiring rehabilitation plans to keep in-force policies on Florida real property and potentially cancel out-of-state policies.

Establishes annual assessment authority allowing the Office of Insurance Regulation to order assessments on title insurers doing business in Florida, capped at 3 percent of surplus per year or 10 percent over five consecutive years, to fund unpaid claims and administration costs for rehabilitated insurers.

Creates surcharge mechanism on title insurance policies issued in Florida to recover assessments, with per-transaction surcharges capped at $25 per impaired insurer and recovery period not exceeding 7 years; surcharges treated as governmental assets and separately stated on settlement statements.

Prohibits title insurers in rehabilitation from issuing new policies and from being released from rehabilitation until assessed insurers recover all amounts paid through surcharges or direct payments from the impaired insurer.