1999 Legislation
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HOUSE BILL NO. 15 – Title insurance license, term, fee


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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

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 15

                                      BY MR. SPEAKER
                          Requested by: Department of Insurance

 1                                        AN ACT

 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 of  fifty   two hundred   dollars  ($
26    50.   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 of  each    the  second  
41    year    after  the  license  was issued  and shall be automatically
42    renewed thereon  and every other year thereafter  upon the  payment
43    of   the annual   a  fee of  fifty   two


 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)   wilfully   Willfully  violated any  provisions
19    of  title  41,  Idaho Code, or the  regulations   rules 
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    the  regulations   rules  thereunder.

Statement of Purpose / Fiscal Impact

                      STATEMENT  OF  PURPOSE
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.

Name:     James Genetti
Agency:   Department of Insurance
Phone:    334-4250

Statement of Purpose/Fiscal Impact                             H 1