Title Insurance Issues (C) Working Group
Title Insurance Issues (C) Working Group Page
Joint Executive (EX) / Plenary Committee Summary Report
Winter 2009 Meeting Summaries Index

The Title Insurance Issues (C) Working Group met Dec. 6, 2009. During this meeting, the Working Group:

• Heard a report on the proposed Consumer Financial Protection Agency contained in H.R. 3126 that establishes an independent federal agency to protect consumers in financial transactions. The proposal has passed two House committees and was merged into the larger House financial regulatory reform package expected on the Floor this week. The bill would establish an independent federal agency, or group of regulators to regulate consumer financial issues. It was designed to address predatory lending and credit card company abuses, and exempts insurance generally. Insurance is exempted from the House bill, but still includes real estate settlement practices and Real Estate Settlement Procedures Act (RESPA) transactions. The comprehensive proposal in the Senate includes credit, title and mortgage insurance, with troubling definitions that threaten to extend to other lines of insurance. Both House and Senate are in the process of moving major financial regulatory packages, with the House moving more quickly. It is hoped that insurance will be exempted from the Senate bill.

• Received compiled results from a survey of state laws on the collection of title agent data and other information. The survey results include information on: states authorized to require data reporting from title companies and title agents; states being authorized to require title insurers to obtain participants data and report it; only eight states currently collect data on a regular basis and 19 states collect on an ad hoc basis; most states that collect data do not aggregate or compile the results; the number of states where data is kept confidential; the processes that are regulated; the rate regulation method and applicable rate standards; the type of participants that are regulated and what duties each performs; where title plants are required; information on closing protection letters; information on escrow and trust accounts; and whether surety bonds are required. NAIC staff will send the individual state responses to each state and allow each state to review their responses to make any necessary corrections. The Working Group Chair, Alan Seeley, and NAIC staff will review the best delivery method of the individual state results to everyone.

• Discussed the creation of a uniform database of title agent data, as the survey results indicate that 61% of  the states are authorized to require data reporting by title agents, and the Working Group can assist states in developing data requests that will help in analyzing the marketplace.

• Established a subgroup to consider the purpose and data elements of a uniform database of title agent data.

• Learned that the Property and Casualty Insurance (C) Committee made a recommendation during the Fall National Meeting that the Title Insurance Issues (C) Working Group be changed from a working group to a task force. The recommendation will be considered during the Executive (EX) Committee meeting later today.

• Heard that that American Land and Title Association (ALTA) recently decided to start charging title insurers and agents an annual copyright “licensing fee” to use (i.e., issue) their title policies and forms that were developed by ALTA if the title insurer or agent is not an ALTA member. ALTA is not filing the forms with the insurance departments; it is still the responsibility of the user to file the form(s) as they wish.

• Considered and adopted the work plan and prioritization schedule for 2010.