No. 29446: R590-99. Delay or Failure to Record Documents and the Insuring of Properties with the False Appearance of Unmarketability as Unfair Title Insurance Practices

DAR File No.: 29446
Filed: 01/27/2007, 08:00
Received by: NL

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 31A-2-201 is the general rulemaking authority authorizing the commissioner to write rules to implement the provisions of the insurance code. The intent of the rule is to implement the provisions of Section 31A-23a-402 in the case of title insurance practices. The rule clarifies the definition of certain terms used in the title insurance industry and sets as an unfair or deceptive practice that of delaying or refusing to record documents that would result in the apparent unmarketability of title or a title which may not be insurable by another insurer. The rule also sets as a material inducement to obtaining title insurance business, the issuance or agreement to issue title insurance when the title has not been recorded and the title is uninsurable.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No written comments regarding this rule have been received by the department in the past five years.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule is more important now than ever due to the fact that some agencies are not paying off state, federal, or mechanics liens, and then insuring over them. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

Direct questions regarding this rule to:

Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Authorized by:

Jilene Whitby, Information Specialist