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GA SB331
Bill
Status
Passed
5/2/2012
Primary Sponsor
Greg Goggans
Click for details
AI Summary
- Authorizes title insurers in Georgia to issue closing protection letters, which indemnify buyers, lenders, or sellers against losses from fraud, theft, dishonesty, negligence, or failure to follow written closing instructions by the person responsible for disbursing settlement funds in real estate transactions
- Closing protection letters may only be issued for real estate transactions where the title insurer's policies are issued and where its issuing agent or agency is also responsible for disbursing settlement funds
- Premiums for closing protection letters must be filed with and approved by the Commissioner of Insurance and cannot be subject to any agreement requiring a division of the premium collected
- Companies issuing closing protection letters must maintain adequate reserves in accordance with existing state insurance reserve requirements
- The Commissioner of Insurance is authorized to promulgate rules and regulations to implement the new provisions, including prescribing standard closing protection letter policy forms
Legislative Description
Insurance; closing protection letters; provide for premiums; authorize Commissioner of Insurance to promulgate rules and regulations
Last Action
Effective Date
5/2/2012
Committee Referrals
Insurance2/17/2012
Insurance and Labor1/25/2012
Full Bill Text
No bill text available