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ID H0575
Bill
Status
2/28/2014
Primary Sponsor
Ways and Means Committee
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AI Summary
HB 575 Summary
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Expands the definition of "business of title insurance" to include the issuance of closing or settlement protection by title insurers under new section 41-2714.
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Title insurers may issue closing or settlement protection to buyers, borrowers, or lenders in transactions where a title insurance policy will be issued, covering theft/misappropriation of settlement funds and failure to comply with written closing instructions.
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Closing or settlement protection coverage is limited to losses relating to title status, validity, enforceability, and priority of mortgage liens, and must be provided on forms filed with the Department of Insurance.
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Title insurers must file closing or settlement protection fees with the Department of Insurance according to established rate-filing procedures; fees cannot be subject to fee-sharing agreements and are the only fee charged for such coverage.
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Title insurers are prohibited from providing any other protection purporting to indemnify against improper acts or omissions related to closing or settlement services.
Legislative Description
Amends and adds to existing law to establish additional provisions relating to the business of title insurance; to establish additional provisions relating to the business of title insurance operating under the control and supervision of the director of the Department of Insurance; to require that every title insurer or rating organization file with the director of the Department of Insurance closing or settlement protection; to provide that a title insurer may issue closing or settlement protection to certain persons and to provide related requirements.
TITLE INSURANCE
Last Action
Reported Printed and Referred to Ways & Means
3/3/2014