Bill Text: CA AB762 | 2017-2018 | Regular Session | Amended
Bill Title: Title insurers: finances and investments.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2018-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB762 Detail]
Download: California-2017-AB762-Amended.html
|
Amended
IN
Assembly
March 23, 2017 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 762 |
| Introduced by Assembly Member Waldron |
February 15, 2017 |
An act to amend Section 12340.1 12370 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 762, as amended, Waldron.
Title insurance. insurers: finances and investments.
Existing law defines title insurance as insuring, guaranteeing, or indemnifying an owner of real or personal property or the holder of liens or encumbrances or others who have interests in the property against loss or damage due to liens, encumbrances, or defects in the title to the insured property, defects in liens or encumbrances, or defects in title searches. Existing law requires every title insurer to annually set apart a sum equal to 10% of its premiums collected during the year. Those sums are required to be allowed to accumulate until a fund is created equal to 25% of the aggregate of the subscribed capital stock of the insurer, or $1,000,000, whichever is the lower amount. The fund is known as the “title surplus fund.”
This bill would make technical, nonsubstantive changes to those provisions.
This bill would increase the annual sum required to be set apart by the title insurer to 12% of its premiums collected during the year and would provide that the monetary amount required to be allowed to accumulate in the title surplus fund, as provided, be increased to $1,250,000.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 12370 of the Insurance Code is amended to read:12370.
(a) Every title insurer shall annually set apart a sum equal to(b) After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such
12380), that
amount shall be reduced by the aggregate amount which shall be that is set aside and maintained by such that insurer in such an unearned premium reserve. Such That fund shall be known as the “title insurance surplus
fund.”
“Title insurance” means insuring, guaranteeing, or indemnifying owners of real or personal property or the holders of liens or encumbrances thereon or others interested therein against loss or damage suffered by reason of the following:
(a)Liens or encumbrances on, or defects
in, the title to
the property.
(b)Invalidity or unenforceability of any liens or encumbrances on the property.
(c)Incorrectness of searches relating to the title to real or personal property.
