No. 29994: R592-5. Title Insurance Product or Service Approval for a Dual Licensed Title License

DAR File No.: 29994
Filed: 08/01/2007, 05:05
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The changes to this rule are a result of proposed changes made during the hearing and comment period of this rule.

Summary of the rule or change:

The meaning of "Dual Licensed Title Licensee" is being added and includes what it does not mean. A statutory reference in Subsection R592-5-3(5) is being corrected. (DAR NOTE: This change in proposed rule has been filed to make additional changes to a proposed new rule that was published in the June 15, 2007, issue of the Utah State Bulletin, on page 37. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the change in proposed rule and the proposed new rule together to understand all of the changes that will be enforceable should the agency make this rule effective.)

State statutory or constitutional authorization for this rule:

Sections 31A-2-404 and 31A-2-405

Anticipated cost or savings to:

the state budget:

This rule will have no fiscal impact on the state budget. Fees received by the department should not be affected nor will there be a requirement for additional filings or other work that would affect the staff of the department.

local governments:

Since this rule deals with the department and their licensees, this rule will have no impact on local government.

small businesses and persons other than businesses:

The changes to this rule will allow title licensees who have an inactive real estate or mortgage license or certificate to be exempted from the definition of a "dual licensee," which will allow them to continue to sell title insurance products without the approval of the Title and Escrow Commission. If this exemption had not been added to the rule those with an inactive real estate and mortgage license or certificate would have been slowed in their ability to complete a title transaction while they waited for approval from the commission.

Compliance costs for affected persons:

The changes to this rule will allow title licensees who have an inactive real estate or mortgage license or certificate to be exempted from the definition of a "dual licensee," which will allow them to continue to sell title insurance products without the approval of the Title and Escrow Commission. If this exemption had not been added to the rule those with an inactive real estate and mortgage license or certificate would have been slowed in their ability to complete a title transaction while they waited for approval from the commission.

Comments by the department head on the fiscal impact the rule may have on businesses:

The changes to this rule will allow those with inactive licenses to continue to do their business as they have done up to this point. D. Kent Michie, Commissioner

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

Insurance
Title and Escrow Commission
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]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

09/14/2007

This rule may become effective on:

09/21/2007

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R592. Insurance, Title and Escrow Commission.

R592-5. Title Insurance Product or Service Approval for a Dual Licensed Title Licensee.

 

. . . . . . .

 

R592-5-3. Definitions.

For the purposes of this rule, the commissioner adopts the definitions in Sections 31A-1-301, 31A-2-402, and the following:

(1)(a) "Dual licensed title licensee" has the same meaning as set forth in 31A-2-402.

(b) "Dual licensed title licensee" does not mean:

(i) a title licensee who holds an inactive license under 31A-2-402(3)(b)(i), (ii) and (iii); or

(ii) a title licensee who holds an education provider certificate.

(2) "Need for expedited approval" means a significant hardship to the buyer or seller in the transaction.

[(2)](3) "Principal" means a person from whom a dual licensee has received compensation for submitting a transaction under one or more of his or her dual licenses. Examples include, but are not limited to, a mortgage company, a real estate broker, a title agency, a builder, or a developer.

[(3)](4) "Title insurance product" means the insuring, guaranteeing, or indemnifying of owners of real or personal property or the holders of liens or encumbrances on that property, or others interested in the property against loss or damage suffered by reason of liens or encumbrances upon, defects in, or the unmarketability of the title to the property, or invalidity or unenforceability of any liens or encumbrances on the property.

[(4)](5) "Title insurance service" has the same meaning as the definition of "escrow" found in Subsection 31A-1-301[(55)](56).

 

. . . . . . .

 

KEY: title dual licensees

Date of Enactment or Last Substantive Amendment: 2007

Authorizing, and Implemented or Interpreted Law: 31A-2-404