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H0015........................................................by MR. SPEAKER
Requested by Department of Insurance
TITLE INSURANCE - LICENSE - Amends existing law to increase the term of a
title insurance license from one year to two years; and to provide an
increase in the fee to $200.
01/11 House intro - 1st rdg - to printing
01/11 Rpt prt - to Bus
H0015|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 15 BY MR. SPEAKER Requested by: Department of Insurance 1 AN ACT 2 RELATING TO TITLE INSURANCE; AMENDING SECTION 41-2710, IDAHO CODE, TO INCREASE 3 THE TERM OF THE LICENSE, TO INCREASE THE FEE FOR THE LICENSE AND TO MAKE 4 TECHNICAL CORRECTIONS. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 41-2710, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 41-2710. REQUIREMENTS FOR AGENTS. A title insurance agent is a person 9 owning or leasing separately or with another licensed agent a complete set of 10 tract indexes and abstract records of each county for which policies are writ- 11 ten and authorized in writing by a title insurer to solicit insurance, issue 12 or countersign policies, or otherwise engage in the title insurance business. 13 A title insurer shall not allow or permit any person, firm, association or 14 corporation to act as its agent in relation to the issuance of any certifi- 15 cate, title insurance policy, or other underwriting contract unless such per- 16 son, firm, association or corporation shall first have obtained a title insur- 17 ance agent's license for each county for which policies are to be written from 18 the director of the department of insurance. No person, firm, association or 19 corporation shall act within this state as such agent for any title insurer 20 without first having obtained a license from the director of insurance and 21 filed a bond or cash deposit in lieu thereof as required herein. 22 A separate agent's license for each county shall be issued by the director 23 of the department of insurance upon due showing filed by the applicant upon 24 forms to be provided by the director of the department of insurance and pay- 25 ment of a fee offiftytwo hundred dollars ($2650.2 00), upon oath, that such applicant if an individual, 27 is a bona fide resident of Idaho, if a firm or association is composed wholly 28 of Idaho residents, or if a corporation is duly authorized or qualified to do 29 business in the state, that the individual agent (or if a corporation or asso- 30 ciation, its managerial personnel who are going to exercise the license privi- 31 lege) has reasonable experience or instruction in the field of title examina- 32 tions and title insurance and the insurance laws of Idaho, that the applicant 33 owns or leases, separately or with another, and maintains an adequate, com- 34 plete set of tract indexes and abstract records of each county wherein he pro- 35 posed to do business, and such application shall be indorsed by the title 36 insurer with whom he proposed to do business that the proposed agent is known 37 to have a good reputation and is worthy of public trust and that such title 38 insurer knows of no fact or condition that would disqualify the agent from 39 receiving the permit. An agent's license shall continue from the date issued 40 until the first day of January ofeachthe second 41 year after the license was issued and shall be automatically 42 renewed thereon and every other year thereafter upon the payment 43 ofthe annuala fee offiftytwo 2 1 hundred dollars ($50.2 00) by the agent, 2 unless terminated as herein provided by the director of insurance for cause. 3 If the filing fee is not promptly paid, the applicant shall be subject to a 4 late filing fee of two dollars ($2.00) a day up to a maximum of one hundred 5 dollars ($100). 6 Upon the termination of any agency by a title insurer or by the agent ter- 7 minating, the title insurer shall immediately notify the director of the 8 department of insurance in writing and a title insurance agent shall forthwith 9 notify the director of the department of insurance of the name of a new title 10 insurer with whom he proposes to do business, with the new title insurer's 11 indorsement upon said notification. No title insurer shall allow the license 12 of an agent for which it has vouched to continue unless all of the foregoing 13 conditions have been complied with. 14 The license of any title insurance agent may be denied, or the license 15 suspended, revoked or renewal thereof refused, by the director of the depart- 16 ment of insurance after notice and hearing if he finds that such license 17 holder has: 18 (1)wilfullyWillfully violated any provisions 19 of title 41, Idaho Code, or theregulationsrules 20 issued thereunder; or 21 (2) Has intentionally made a material misstatement in the application for 22 such license; or 23 (3) Has obtained or attempted to obtain such license by fraud or misrep- 24 resentation; or 25 (4) Has misappropriated or converted to his own use or illegally withheld 26 money belonging to a title insurance company, an insured or any other person; 27 or 28 (5) Has demonstrated his lack of trustworthiness or competence to act as 29 such agent or been guilty of fraudulent or dishonest practices; or 30 (6) Has materially misrepresented the terms and conditions of a title 31 insurance policy or contract, or the condition of the title represented 32 thereby; or 33 (7) Has failed to maintain a separate and distinct accounting of escrowed 34 funds, and has failed to maintain an escrow bank account or account separate 35 and apart from all other accounts. 36 Before any license is denied, suspended or revoked or renewal refused, the 37 director shall give thirty (30) days' written notice by registered mail to the 38 licensee or applicant and the title insurer represented by the agent, and if 39 said agent or title insurer desires, to set a date of hearing and to allow the 40 production of evidence by said parties, or any other interested person as to 41 the matter. The right and remedies of the parties shall be as set forth in 42 chapter 52, title 67, Idaho Code. Any decision of the director of the depart- 43 ment of insurance shall be made in writing and filed in his office and mailed 44 to the title insurer and agent involved. 45 As a condition of obtaining said license, the individual to be licensed 46 for himself, or the entity to be licensed for each employee escrow officer 47 shall obtain, file and pay for a surety bond as provided for an escrow offi- 48 cer. 49 Regular examination of the tract indexes and abstract records of a title 50 agent after the first examination thereof by the director shall be limited to 51 not more than every fifth year, unless the agent otherwise requests or the 52 director has cause to believe the same does not comply with this chapter or 53 theregulationsrules thereunder.
STATEMENT OF PURPOSE
RS08353
To amend Idaho Code, Section 41-2710, to change the license renewal
period for title insurance plants from yearly to every two years
and increase the fee for licensing from $50.00 annually to $200.00
every two years. There has been no change in this licensing fee
since 1973 and this fee licenses the title plant which may include
several individuals under one license. For comparison purposes, a
single non-title agent's license costs $90.00 for initial licensing
per line of insurance and $40.00 per individual renewal every two
years. This license covers only one individual rather than a group
of individuals as in a title agency.
FISCAL IMPACT
Fiscal impact from the fee increase will be minimal.
CONTACT
Name: James Genetti
Agency: Department of Insurance
Phone: 334-4250
Statement of Purpose/Fiscal Impact H 1