Text: HSB00236 Text: HSB00238 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 515H.1 TITLE. 1 2 1. This chapter shall be known as the "Iowa Title 1 3 Insurance Agents Act". 1 4 2. The purpose of this chapter is to provide the state of 1 5 Iowa with a comprehensive body of law for the effective 1 6 regulation and supervision of title insurance agents. 1 7 Sec. 2. NEW SECTION. 515H.2 DEFINITIONS. 1 8 As used in this chapter, unless the context otherwise 1 9 requires: 1 10 1. "Abstract of title" means a written history, synopsis, 1 11 or summary of the recorded instruments affecting title to real 1 12 property. 1 13 2. "Affiliated business" means any portion of a title 1 14 insurance agent's business written in this state that was 1 15 referred to the agent by a producer of title insurance 1 16 business or by an associate of the producer, where the 1 17 producer or associate, or both, have a financial interest in 1 18 the title insurance agent. 1 19 3. "Associate" means any of the following: 1 20 a. A business organized for profit in which a producer of 1 21 title business is a director, officer, partner, employee, or 1 22 owner of a financial interest. 1 23 b. An employee of a producer of title business. 1 24 c. A franchiser or franchisee of a producer of title 1 25 business. 1 26 d. A spouse, parent, or child of a producer of title 1 27 insurance business who is a natural person. 1 28 e. A person, other than a natural person, that controls, 1 29 is controlled by, or is under common control with a producer 1 30 of title business. 1 31 f. A person with whom a producer of title insurance 1 32 business or any associate of the producer of title insurance 1 33 business has an agreement, arrangement, or understanding, or 1 34 pursues a course of conduct, the purpose or effect of which is 1 35 to provide financial benefits to that producer or associate 2 1 for the referral of business. 2 2 4. "Bona fide employee" of the title insurer or title 2 3 insurance agent means an individual who devotes substantially 2 4 all of that individual's time to performing services on behalf 2 5 of a title insurer or title insurance agent and whose 2 6 compensation for these services is in the form of salary or 2 7 its equivalent paid by the title insurer or title insurance 2 8 agent. 2 9 5. "Commissioner" means the commissioner of insurance of 2 10 this state, or the commissioner's representatives, or the 2 11 commissioner, director, or superintendent of insurance in any 2 12 other state. 2 13 6. "Escrow" means written instruments, money, or other 2 14 items deposited by one person with a depository, escrow agent, 2 15 or escrowee for delivery to another person upon the 2 16 performance of a specified condition or the happening of a 2 17 certain event. 2 18 7. "Financial interest" means a direct or indirect 2 19 interest, legal or beneficial, where the holder is or will be 2 20 entitled to five percent or more of the net profits or net 2 21 worth of the entity in which the interest is held. 2 22 8. "Foreign title insurer" means a title insurer 2 23 incorporated or organized under the laws of any other state of 2 24 the United States, the District of Columbia, or any other 2 25 jurisdiction of the United States. 2 26 9. "Non-United States title insurer" means a title insurer 2 27 incorporated or organized under the laws of any foreign nation 2 28 or any foreign province or territory. 2 29 10. "Person" means a natural person, partnership, 2 30 association, cooperative, corporation, trust, or other legal 2 31 entity. 2 32 11. "Producer" means a person, including an officer, 2 33 director, or owner of five percent or more of the equity or 2 34 capital of any person, engaged in this state in the trade, 2 35 business, occupation, or profession of any of the following: 3 1 a. Buying or selling interests in real property. 3 2 b. Making loans secured by interests in real property. 3 3 c. Acting as broker, agent, representative, or attorney of 3 4 a person who buys or sells an interest in real property, or 3 5 who lends or borrows moneys with the interest as security. 3 6 12. "Qualified financial institution" means an institution 3 7 that is all of the following: 3 8 a. Organized, or in the case of a United States branch or 3 9 agency office of a foreign banking organization licensed, 3 10 under the laws of the United States or any state and has been 3 11 granted authority to operate with fiduciary powers. 3 12 b. Regulated, supervised, and examined by federal or state 3 13 authorities having regulatory authority over banks and trust 3 14 companies. 3 15 c. Insured by the appropriate federal entity. 3 16 d. Qualified under any additional rules established by the 3 17 commissioner. 3 18 13. "Referral" means the direction or exercise of any 3 19 power or influence over the direction of title insurance 3 20 business, whether or not the consent or approval of any other 3 21 person is sought or obtained with respect to the referral. 3 22 14. "Security" means funds or other property received by a 3 23 title insurance agent as collateral to secure an indemnitor's 3 24 obligation under an indemnity agreement pursuant to which a 3 25 title insurer is granted a perfected security interest in the 3 26 collateral in exchange for agreeing to provide coverage in a 3 27 title insurance policy for a specific title exception to 3 28 coverage. 3 29 15. "Title insurance agent" means an authorized person, 3 30 other than a bona fide employee of a title insurer who, on 3 31 behalf of a title insurer, performs any of the following acts, 3 32 in conjunction with the issuance of a title insurance report 3 33 or policy: 3 34 a. Determines insurability and issues title insurance 3 35 reports or policies, or both, based upon the performance or 4 1 review of a search, or an abstract of title. 4 2 b. Performs one or more of the following functions: 4 3 (1) Collects or disburses premiums, escrow, or security 4 4 deposits or other funds. 4 5 (2) Handles escrow, settlements, or closings. 4 6 (3) Solicits or negotiates title insurance business. 4 7 (4) Records closing documents. 4 8 16. "Title insurance business" means engaging in any of 4 9 the following: 4 10 a. Issuing or offering to issue as an insurer a title 4 11 insurance policy. 4 12 b. Transacting or proposing to transact by a title 4 13 insurance agent any of the following activities when conducted 4 14 or performed in contemplation of or in conjunction with the 4 15 issuance of a title insurance policy: 4 16 (1) Soliciting or negotiating the issuance of a title 4 17 insurance policy. 4 18 (2) Guaranteeing, warranting, or otherwise insuring the 4 19 correctness of title searches for all instruments affecting 4 20 titles to real property, any interest in real property, 4 21 cooperative units, and proprietary leases, and for all liens 4 22 or charges affecting the same. 4 23 (3) Handling escrows, settlements, or closings. 4 24 (4) Executing title insurance policies. 4 25 (5) Effecting contracts of reinsurance. 4 26 (6) Abstracting, searching, or examining titles. 4 27 c. Guaranteeing, warranting, or insuring searches or 4 28 examination of title to real property or any interest in real 4 29 property. 4 30 d. Guaranteeing or warranting the status of title as to 4 31 ownership of or liens on real property and personal property 4 32 by any person other than the principals to the transaction. 4 33 e. Doing or proposing to do any business substantially 4 34 equivalent to any of the activities listed in this subsection 4 35 in a manner designed to evade the provisions of this chapter. 5 1 17. "Title insurance policy" means a contract insuring or 5 2 indemnifying owners of, or other persons lawfully interested 5 3 in, real or personal property or any interest in real 5 4 property, against loss or damage arising from any of the 5 5 following conditions existing on or before the policy date and 5 6 not excepted or excluded: 5 7 a. Defects in, or liens or encumbrances on, the insured 5 8 title. 5 9 b. Unmarketability of the insured title. 5 10 c. Invalidity, lack of priority, or unenforceability of 5 11 liens or encumbrances on the stated property. 5 12 d. Lack of legal right of access to the land. 5 13 e. Unenforceability of rights in title to the land. 5 14 18. "Title insurance report" means a preliminary report, 5 15 commitment, or binder issued prior to the issuance of a title 5 16 insurance policy containing the terms, conditions, exceptions, 5 17 and any other matters incorporated by reference under which 5 18 the title insurer is willing to issue its title insurance 5 19 policy. 5 20 19. "Title insurance subagent" means a person, other than 5 21 a bona fide employee of a title insurance agent who, on behalf 5 22 of the title insurance agent, determines insurability and 5 23 issues title insurance reports or policies, or both, based 5 24 upon the performance or review of a search or abstract of 5 25 title, provided that the performance of actual legal services 5 26 such as title examination or closing services by a licensed 5 27 attorney does not render the attorney a subagent. 5 28 20. "Title insurer" means a company organized under the 5 29 laws of this state for the purpose of transacting the business 5 30 of title insurance and any foreign or non-United States title 5 31 insurer licensed in this state to transact the business of 5 32 title insurance. 5 33 21. "Underwrite" means the authority to accept or reject 5 34 risk on behalf of a title insurer. 5 35 Sec. 3. NEW SECTION. 515H.3 LICENSING REQUIREMENTS. 6 1 1. A person shall not act in the capacity of a title 6 2 insurance agent, and a title insurer shall not contract with 6 3 any person to act in the capacity of a title insurance agent 6 4 with respect to risks located in this state unless the person 6 5 is a licensed title insurance agent in this state or possesses 6 6 a license acceptable to the commissioner and issued by this 6 7 state. 6 8 2. Every title insurance agent licensed in this state 6 9 shall do all of the following: 6 10 a. Eliminate the word "insurer" or "underwriter" or 6 11 similar term from the name of the title insurance agency. 6 12 b. Provide, in a timely fashion, each title insurer with 6 13 which it places business any information the title insurer 6 14 requests in order to comply with reporting requirements of the 6 15 commissioner. 6 16 3. The commissioner shall require the title insurance 6 17 agent and any designee of the title insurance agent performing 6 18 the title search to maintain, for the benefit of the title 6 19 insurer, in amounts commensurate with the agent's average 6 20 exposure, under terms and conditions, and from insurers 6 21 acceptable to the commissioner, all of the following: 6 22 a. An error and omission policy which includes coverage 6 23 for an agent's delegation of any agent functions. 6 24 b. Fidelity coverage if the agent handles escrow or 6 25 security deposits. 6 26 The commissioner may adopt rules pursuant to chapter 17A 6 27 specifying acceptable alternatives to the requirements of this 6 28 subsection. The availability of closing or settlement 6 29 protection shall not be construed to be an acceptable 6 30 alternative to the requirements of this subsection. 6 31 4. If the title insurance agent delegates the title search 6 32 to a third party, such as an abstract company, the third party 6 33 shall provide the agent and the insurer with access to and the 6 34 right to copy all accounts and records maintained by the third 6 35 party with respect to business placed with the title insurer. 7 1 Sec. 4. NEW SECTION. 515H.4 EXAMINATION OF TITLE 7 2 INSURANCE AGENTS. 7 3 The commissioner may, during normal business hours, 7 4 examine, audit, and inspect any and all books and records 7 5 required to be maintained by a title insurance agent under the 7 6 provisions of this chapter. 7 7 Sec. 5. NEW SECTION. 515H.5 PROHIBITION OF REBATE AND 7 8 FEE SPLITTING. 7 9 A title insurance agent or other person shall not provide 7 10 or receive, directly or indirectly, any consideration for the 7 11 referral of title insurance business or escrow or other 7 12 services provided by a title insurance agent unless goods or 7 13 services are provided in conjunction with such a referral. 7 14 Sec. 6. NEW SECTION. 515H.6 AFFILIATED BUSINESS 7 15 PROVISIONS. 7 16 1. Whenever business constitutes affiliated business, 7 17 prior to commencing such a business transaction, the title 7 18 insurance agent shall ensure that the title insurance agent's 7 19 customer has been provided with disclosure of the existence of 7 20 the affiliated business arrangement and a written estimate of 7 21 the charge or range of charges generally made for the title 7 22 services provided by the title insurance agent. 7 23 2. The commissioner may establish rules requiring title 7 24 insurance agents to record and report the title insurance 7 25 agent's owners and all of the title insurance agent's 7 26 ownership interests in other persons or businesses, and to 7 27 record and report material transactions between the title 7 28 insurance agents and other persons or businesses. 7 29 3. This chapter shall not be construed as prohibiting 7 30 affiliated business arrangements in the provision of title 7 31 insurance business if all of the following apply: 7 32 a. The title insurance agent or party making a referral 7 33 constituting affiliated business, at or prior to the time of 7 34 the referral, discloses the arrangement and, in connection 7 35 with the referral, provides the person being referred with a 8 1 written estimate of the charge or range of charges likely to 8 2 be assessed, and otherwise complies with the disclosure 8 3 obligations of this section. 8 4 b. The person being referred is not required to use a 8 5 specified title insurance agent or title insurer. 8 6 c. The only thing of value that is received by the title 8 7 insurance agent or party making the referral, other than 8 8 payments otherwise permitted, is a return on an ownership 8 9 interest. For purposes of this subsection, the terms 8 10 "required use" and "return on ownership interest" have the 8 11 meanings accorded to them under the federal Real Estate 8 12 Settlement Procedures Act, 12 U.S.C. } 2607, as amended, and 8 13 Regulation X, 24 C.F.R., pt. 3500. 8 14 Sec. 7. NEW SECTION. 515H.7 FAVORED AGENT OF TITLE 8 15 INSURER. 8 16 A title insurance agent shall not participate in any 8 17 transaction in which a producer or other person requires, 8 18 directly or indirectly, or through a trustee, director, 8 19 officer, agent, employee, or affiliate, as a condition, 8 20 agreement, or understanding to providing, selling, or 8 21 furnishing any other person a loan, loan extension, credit, 8 22 sale, property, contract, lease, or service, that the other 8 23 person must place a title insurance policy of any kind with a 8 24 particular title insurer or through a particular title 8 25 insurance agent. 8 26 Sec. 8. NEW SECTION. 515H.8 REQUIRED PROVISIONS OF 8 27 UNDERWRITING CONTRACT WITH TITLE INSURER. 8 28 A person acting in the capacity of a title insurance agent 8 29 shall not place business with a title insurer unless there is 8 30 in force a written contract between the title insurance agent 8 31 and the title insurer which sets forth the responsibilities of 8 32 each party to the contract. Where the title insurance agent 8 33 and the title insurer share responsibility for a particular 8 34 function, the contract shall specify the division of such 8 35 responsibilities and shall contain language which provides for 9 1 all of the following: 9 2 1. The title insurer may terminate the contract upon 9 3 written notice of any of the following circumstances: 9 4 a. Fraud, insolvency, appointment of a receiver or 9 5 conservator, bankruptcy, cancellation of the title insurance 9 6 agent's license or permit to do business, or the commencement 9 7 of legal proceedings by the state of domicile of the title 9 8 insurance agent, which, if successful, would lead to 9 9 cancellation of the title insurance agent's permit or license 9 10 to do business. 9 11 b. Material breach of any provisions of the contract. 9 12 c. Notice of cancellation has been provided in accordance 9 13 with contract termination requirements. 9 14 2. Upon receiving notice of termination, the title 9 15 insurance agent shall immediately discontinue all title 9 16 insurance business activities. This subsection is not 9 17 intended to relieve the title insurance agent or title insurer 9 18 of any other contractual obligation. 9 19 3. The title insurance agent shall render accounts to the 9 20 title insurer detailing all transactions and shall remit all 9 21 funds due under the underwriting contract to the title insurer 9 22 within the time specified by the underwriting contract. 9 23 4. All funds collected for the account of a title insurer 9 24 by a title insurance agent shall be held in a fiduciary 9 25 capacity in a bank that is a qualified financial institution. 9 26 5. At the title insurer's request, the title insurance 9 27 agent, its successor in interest, transferee, or receiver 9 28 shall provide access to and the right to copy all escrow files 9 29 and underwriting files involving a transaction in which a 9 30 title insurance report or policy has been or is to be issued. 9 31 6. Separate records of business written by the title 9 32 insurance agent shall be maintained for each title insurer. 9 33 The title insurer shall have access to and a right to copy all 9 34 accounts and records related to its business in a form 9 35 acceptable to the title insurer. The commissioner shall have 10 1 access to all books, bank accounts, and records of the title 10 2 insurance agent in a form usable to the commissioner. The 10 3 records shall be retained according to section 515H.10. 10 4 7. An underwriting contract with a title insurer shall not 10 5 be assigned in whole or in part by the title insurance agent 10 6 without the express written consent of the title insurer. 10 7 8. The contract shall contain appropriate guidelines, 10 8 relating to all of the following: 10 9 a. The basis of the rates to be charged. 10 10 b. The types of risks which may be written. 10 11 c. Maximum limits of liability. 10 12 d. Territorial limitations. 10 13 e. Title searches and examinations. 10 14 f. Underwriting. 10 15 9. The title insurance agent shall immediately report and 10 16 forward to the title insurer all title-related escrow claims 10 17 and title claims reported to the title insurance agent by a 10 18 policyholder or another person. However, if the contract 10 19 permits the title insurance agent to settle claims on behalf 10 20 of the title insurer, all of the following shall apply: 10 21 a. A copy of the claim file shall be sent to the title 10 22 insurer at its request or as soon as any of the following 10 23 become known: 10 24 (1) The claim has the potential to exceed an amount 10 25 established by the title insurer. 10 26 (2) The claim involves a coverage dispute. 10 27 (3) The claim may exceed the title insurance agent's 10 28 claims settlement authority on claims. 10 29 (4) The claim is open for more than six months. 10 30 (5) The claim is closed by payment exceeding an amount 10 31 established by the title insurer. 10 32 b. All title and title-related escrow claims files settled 10 33 by the title insurance agent shall be the property of the 10 34 title insurer. 10 35 c. Any settlement authority granted to the title insurance 11 1 agent may be terminated immediately upon the title insurer's 11 2 written notice to the title insurance agent or upon the 11 3 termination of the contract. The title insurer may suspend 11 4 the settlement authority during the pendency of a dispute 11 5 regarding the cause for termination. This paragraph is not 11 6 intended to relieve the title insurance agent or title insurer 11 7 of any other contractual obligation. 11 8 10. If electronic claims files exist, the contract must 11 9 address the immediate transmission of the data in the claims 11 10 files. 11 11 11. The title insurance agent shall not bind reinsurance 11 12 or retrocessions on behalf of the title insurer. 11 13 12. The contract shall include specific terms of a title 11 14 insurance agent's compensation. 11 15 13. The title insurance agent shall maintain an inventory 11 16 of all policy forms or policy numbers assigned to the title 11 17 insurance agent by the title insurer. 11 18 14. The title insurance agent shall annually, concurrent 11 19 with the renewal date of its contract, furnish the title 11 20 insurer with proof that the title insurance agent is in 11 21 compliance with section 515H.3. 11 22 15. The title insurance agent shall provide the title 11 23 insurer with access and the right to copy all accounts and 11 24 records maintained by the title insurance agent with respect 11 25 to business placed with the title insurer. 11 26 Sec. 9. NEW SECTION. 515H.9 CONDITIONS FOR PROVIDING 11 27 ESCROW, CLOSING, OR SETTLEMENT SERVICES, AND MAINTAINING 11 28 ESCROW AND SECURITY DEPOSIT ACCOUNTS. 11 29 A title insurance agent may operate as an escrow, security, 11 30 settlement, or closing agent, provided all of the following 11 31 apply: 11 32 1. All funds deposited with the title insurance agent in 11 33 connection with an escrow, settlement, closing, or security 11 34 deposit shall be submitted for collection to or deposited in a 11 35 separate fiduciary trust account or accounts in a qualified 12 1 financial institution no later than the close of the next 12 2 business day, in accordance with all of the following 12 3 requirements: 12 4 a. The funds shall be the property of the person or 12 5 persons entitled to them under the provisions of the escrow, 12 6 settlement, security deposit, or closing agreement, and shall 12 7 be segregated for each depository by escrow, settlement, 12 8 security deposit, or closing in the records of the title 12 9 insurance agent in a manner that permits the funds to be 12 10 identified on an individual basis. 12 11 b. The funds shall be applied only in accordance with the 12 12 terms of the individual instructions or agreements under which 12 13 the funds were accepted. 12 14 2. Funds held in an escrow account shall be disbursed only 12 15 pursuant to a written instruction or agreement specifying how 12 16 and to whom such funds may be disbursed. 12 17 3. Funds held in a security deposit account shall be 12 18 disbursed only pursuant to a written agreement specifying all 12 19 of the following: 12 20 a. What actions the indemnitor shall take to satisfy the 12 21 indemnitor's obligation under the agreement. 12 22 b. The duties of the title insurance agent with respect to 12 23 disbursements of the funds held, including a requirement to 12 24 maintain evidence of the disbursements before any balance may 12 25 be paid over to the depositing party, or the depositing 12 26 party's designee. 12 27 c. Any other provisions the commissioner may require. 12 28 4. A disbursement may be made out of an escrow, 12 29 settlement, or closing account only if deposits in amounts at 12 30 least equal to the disbursement have first been made directly 12 31 to the account against which the disbursement will be made, 12 32 and if the deposits are in one of the following forms: 12 33 a. Lawful moneys of the United States. 12 34 b. Wire transfers such that the funds are unconditionally 12 35 received by the title insurance agent or the title insurance 13 1 agent's depository. 13 2 c. Cashier's checks, certified checks, bank money orders, 13 3 teller's checks issued by a federally insured financial 13 4 institution and unconditionally held by the title insurance 13 5 agent. 13 6 d. United States treasury checks, federal reserve bank 13 7 checks, federal home loan bank checks, and state of Iowa 13 8 warrants. 13 9 e. Personal checks up to one thousand dollars. 13 10 For the purposes of this subsection, "federally insured 13 11 financial institution" means an institution in which monetary 13 12 deposits are insured by the federal deposit insurance 13 13 corporation or national credit union administration. 13 14 5. If the title insurance agent is appointed by two or 13 15 more title insurers and maintains fiduciary trust accounts in 13 16 connection with providing escrow or closing settlement 13 17 services, the title insurance agent shall allow each title 13 18 insurer reasonable access to the accounts and all supporting 13 19 account information in order to ascertain the safety and 13 20 security of the funds held by the title insurance agent. 13 21 6. This chapter does not prohibit the recording of 13 22 documents prior to the time funds are available for 13 23 disbursement with respect to any transaction involving real 13 24 property. 13 25 7. This section is not intended to amend, alter, or 13 26 supersede other sections of this chapter, or the laws of this 13 27 state or the United States, regarding an escrow holder's 13 28 duties and obligations. 13 29 8. The commissioner may prescribe a standard agreement 13 30 relating to escrow, settlement, closing, or security deposit 13 31 funds. 13 32 Sec. 10. NEW SECTION. 515H.10 RECORD RETENTION 13 33 REQUIREMENTS. 13 34 A title insurance agent shall maintain sufficient records 13 35 of the affairs of the title insurance agent, including its 14 1 escrow operations and escrow trust accounts, so that the 14 2 commissioner may adequately ensure that the title insurance 14 3 agent is in compliance with all provisions of this chapter. 14 4 The commissioner may prescribe the specific record entries and 14 5 documents to be kept, and the length of time for which the 14 6 records must be maintained. 14 7 Sec. 11. NEW SECTION. 515H.11 APPLICATION OF OTHER 14 8 INSURANCE CODE SECTIONS TO TITLE INSURANCE AGENTS. 14 9 A title insurance agent shall be subject to all other 14 10 applicable provisions of the insurance code unless 14 11 specifically addressed by this chapter. 14 12 Sec. 12. NEW SECTION. 515H.12 RULES AND REGULATIONS. 14 13 The commissioner may adopt rules pursuant to chapter 17A 14 14 and issue regulations and orders as may be necessary for the 14 15 effective administration of this chapter. 14 16 Sec. 13. NEW SECTION. 515H.13 PENALTIES AND LIABILITIES. 14 17 1. If the commissioner determines that a title insurance 14 18 agent or any other person has violated this chapter, or any 14 19 regulation or order issued thereunder, after notice and 14 20 opportunity to be heard, the commissioner may order any or all 14 21 of the following: 14 22 a. A penalty not exceeding one hundred dollars for each 14 23 violation. 14 24 b. Revocation or suspension of the title insurance agent's 14 25 license. 14 26 2. If an order of rehabilitation or liquidation of the 14 27 title insurer has been entered pursuant to chapter 507C, and 14 28 the receiver appointed under that order determines that the 14 29 title insurance agent or any other person has not complied 14 30 with the requirements of this chapter, or any related 14 31 regulation or order, and the title insurer has suffered 14 32 resulting loss or damage, the receiver may maintain a civil 14 33 action for recovery of damages or other appropriate sanctions 14 34 for the benefit of the title insurer and its policyholders and 14 35 creditors. 15 1 3. This section shall not affect the right of the 15 2 commissioner to impose any other penalties provided for in the 15 3 insurance code. 15 4 4. This chapter is not intended to and shall not in any 15 5 manner limit or restrict the rights of policyholders, 15 6 claimants, and creditors. 15 7 Sec. 14. NEW SECTION. 515H.14 VIOLATIONS OF THE REAL 15 8 ESTATE SETTLEMENT PROCEDURES ACT. 15 9 The commissioner or attorney general may bring an action in 15 10 a court of competent jurisdiction to enjoin violations of the 15 11 federal Real Estate Settlement Procedures Act, 12 U.S.C. } 15 12 2607, as amended. 15 13 Sec. 15. Section 515.48, subsection 10, Code 2001, is 15 14 amended to read as follows: 15 15 10. Insure any additional risk not specifically included 15 16 within any of the foregoing classes, which is a proper subject 15 17 for insurance, is not prohibited by law or contrary to sound 15 18 public policy, and which, after public notice and hearing, is 15 19 specifically approved by the commissioner of insurance, except15 20title insurance or insurance against loss or damage by reason15 21of defective title, encumbrances or otherwise. When such 15 22 additional kind of insurance is approved by the commissioner, 15 23 the commissioner shall designate within which classification 15 24 of risks provided for in section 515.49 it shall fall. 15 25 EXPLANATION 15 26 This bill creates a new Code chapter 515H in the insurance 15 27 code titled the "Iowa Title Insurance Agents Act". The bill 15 28 provides for the licensing, regulation, and supervision of the 15 29 sale of title insurance in Iowa. The bill sets forth the 15 30 requirements for contracts between title insurers and title 15 31 insurance agents, conditions for providing escrow, closing, or 15 32 settlement services, record and reporting requirements, and 15 33 provides penalties for violations of this Code chapter or any 15 34 related regulation or order. 15 35 The bill also amends Code section 515.48 to permit the sale 16 1 of title insurance or insurance against loss or damage by 16 2 reason of defective title, encumbrances, or otherwise. 16 3 LSB 1976HC 79 16 4 av/cf/24
Text: HSB00236 Text: HSB00238 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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