No. 29994 (New Rule): R592-5. Title Insurance Product or Service Approval for a Dual Licensed Title Licensee

DAR File No.: 29994
Filed: 05/30/2007, 03:59
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to set forth the requirements for a dual licensed title licensee to obtain approval from the insurance commissioner or expedited approval from the Title and Escrow Commission to sell a title insurance product.

Summary of the rule or change:

This rule sets the requirements for a dual licensed title licensee to obtain approval from the insurance commissioner or expedited approval from the Title and Escrow Commission to sell a title insurance product.

State statutory or constitutional authorization for this rule:

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

Anticipated cost or savings to:

the state budget:

To date, there are about 78 licensees that have dual licenses that will need to file for approval to sell title insurance. If they file for approval, the department will take in $1,950. At this time, the department and Commission do not believe this will create a substantive workload or fiscal impact on the department or the state budget.

local governments:

This rule will have no fiscal impact on local government since it deals solely with the relationship between the department and its licensees.

other persons:

Licensees who decide to file for an approval to sell title insurance products will need to pay a $25 filing fee. This will have very little, if any, impact on their customers.

Compliance costs for affected persons:

Licensees who decide to file for an approval to sell title insurance products will need to pay a $25 filing fee. This will have very little, if any, impact on their customers.

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

This rule will have very little fiscal impact on title business in Utah. 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:

07/16/2007

Interested persons may attend a public hearing regarding this rule:

7/09/2007 at 10:00 AM, State Office Building (behind the Capitol), Room 4112, Salt Lake City, UT

This rule may become effective on:

07/23/2007

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.

R592-5-1. Authority.

This rule is promulgated pursuant to Sections 31A-2-404 and 31A-2-405, which direct the Title and Escrow Commission to make rules to administer the provisions related to title insurance.

 

R592-5-2. Purpose and Scope.

(1) The purpose of this rule is to set forth the requirements for a dual licensed title licensee to obtain:

(a) approval from the insurance commissioner pursuant to Subsection 31A-2-405(2); and

(b) expedited approval from the Title and Escrow Commission pursuant to Subsection 31A-2-405(3).

(2) This rule applies to all title licensees and applicants for a title insurance license or renewal of a title insurance license.

 

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

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

 

R592-5-4. Filing Requirements, Processes and Procedures.

(1) Only a dual licensed title licensee can file a request for approval for the provision of a title insurance product or service.

(2) A complete filing consists of:

(a) a filing fee pursuant to Section 31A-3-103; and either

(b) a "Dual Licensee Request For Approval for the Provision of a Title Insurance Product or Service" form; or

(c) a "Dual Licensee Request For Expedited Approval for the Provision of a Title Insurance Product or Service" form.

(3) A filing to request approval of a "Dual Licensee Request for Approval for the Provision of a Title Insurance Product or Service" form must:

(a) be sent electronically to the commissioner via email to [e-mail]; and

(b) include credit card information in the payment section of the form.

(4) An expedited filing to request approval of a "Dual Licensee Request for Expedited Approval for the Provision of a Title Insurance Product or Service" form must:

(a) include a completed Section 6, Reason for Requesting Expedited Approval, on the "Dual Licensee Request for Expedited Approval for the Provision of a Title Insurance Product or Service" form;

(b) be sent electronically to the Chair of the Title and Escrow Commission via email to [e-mail]; and

(c) include credit card information in the payment section of the form.

(5) Approval or disapproval will be sent to the filer via return email.

 

R592-5-5. Severability.

If any section, term, or provision of this rule shall be adjudged invalid for any reason, such judgment shall not affect, impair or invalidate any other section, term, or provision of this rule and the remaining sections, terms, and provisions shall be and remain in full force.

 

R592-5-6. Penalties.

A person found, after a hearing or other regulatory process, to be in violation of this rule shall be subject to penalties as provided under Sections 31A-2-308 and 31A-2-405.

 

R592-5-7. Enforcement Date.

The commissioner will begin enforcing this rule 15 days after the rule's effective date.

 

KEY: title dual licensees

Date of Enactment or Last Substantive Amendment: 2007

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