SB 1138 Summary

• Adds new definitions to title insurance law including "closing or settlement," "escrow agreement," "simple escrow," "ledger card," and "settlement statement."

• Requires title insurance applicants to include fingerprints of owners, partners, officers, directors, and anyone directing or controlling management, and proof of name registration with the Division of Corporations.

• Deletes $35,000 security deposit and bond requirements for title insurance agency licensure while maintaining fidelity bond ($50,000 minimum) and errors and omissions insurance ($250,000 minimum) requirements for appointed agencies.

• Authorizes licensed title agencies to engage in simple escrow transactions unrelated to real estate closings and allows title agencies (rather than individual agents) to act as escrow agents in real estate closings.

• Increases the maximum suspension period for license violations from 1 year to 2 years and establishes detailed requirements for escrow and trust account management, including separate account maintenance and ledger card documentation.