Bill Text: FL S1694 | 2012 | Regular Session | Introduced

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Bill Title: Title Insurance Agency Licensure

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2012-03-09 - Died in Banking and Insurance [S1694 Detail]

Download: Florida-2012-S1694-Introduced.html

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       Florida Senate - 2012                                    SB 1694
       
       
       
       By Senator Hays
       
       
       
       
       20-01353-12                                           20121694__
    1                        A bill to be entitled                      
    2         An act relating to title insurance agency licensure;
    3         amending s. 626.8418, F.S.; deleting a requirement
    4         that an applicant for licensure as a title insurance
    5         agency deposit with the Department of Financial
    6         Services a specified amount or post a surety bond of
    7         like amount payable to the department for the benefit
    8         of appointing title insurers damaged by the title
    9         insurance agency’s failure to meet contractual
   10         obligations; providing an effective date.
   11  
   12  Be It Enacted by the Legislature of the State of Florida:
   13  
   14         Section 1. Section 626.8418, Florida Statutes, is amended
   15  to read:
   16         626.8418 Application for title insurance agency license.
   17  Prior to doing business in this state as a title insurance
   18  agency, a title insurance agency must meet all of the following
   19  requirements:
   20         (1) The applicant must file with the department an
   21  application for a license as a title insurance agency, on
   22  printed forms furnished by the department, that includes all of
   23  the following:
   24         (1)(a) The name of each majority owner, partner, officer,
   25  and director of the agency.
   26         (2)(b) The residence address of each person required to be
   27  listed under subsection (1) paragraph (a).
   28         (3)(c) The name of the agency and its principal business
   29  address.
   30         (4)(d) The location of each agency office and the name
   31  under which each agency office conducts or will conduct
   32  business.
   33         (5)(e) The name of each agent to be in full-time charge of
   34  an agency office and specification of which office.
   35         (6)(f) Such additional information as the department
   36  requires by rule to ascertain the trustworthiness and competence
   37  of persons required to be listed on the application and to
   38  ascertain that such persons meet the requirements of this code.
   39         (2) The applicant must have deposited with the department
   40  securities of the type eligible for deposit under s. 625.52 and
   41  having at all times a market value of not less than $35,000. In
   42  place of such deposit, the title insurance agency may post a
   43  surety bond of like amount payable to the department for the
   44  benefit of any appointing insurer damaged by a violation by the
   45  title insurance agency of its contract with the appointing
   46  insurer. If a properly documented claim is timely filed with the
   47  department by a damaged title insurer, the department may remit
   48  an appropriate amount of the deposit or the proceeds that are
   49  received from the surety in payment of the claim. The required
   50  deposit or bond must be made by the title insurance agency, and
   51  a title insurer may not provide the deposit or bond directly or
   52  indirectly on behalf of the title insurance agency. The deposit
   53  or bond must secure the performance by the title insurance
   54  agency of its duties and responsibilities under the issuing
   55  agency contracts with each title insurer for which it is
   56  appointed. The agency may exchange or substitute other
   57  securities of like quality and value for securities on deposit,
   58  may receive the interest and other income accruing on such
   59  securities, and may inspect the deposit at all reasonable times.
   60  Such deposit or bond must remain unimpaired as long as the title
   61  insurance agency continues in business in this state and until 1
   62  year after termination of all title insurance agency
   63  appointments held by the title insurance agency. The title
   64  insurance agency is entitled to the return of the deposit or
   65  bond together with accrued interest after such year has passed,
   66  if no claim has been made against the deposit or bond. If a
   67  surety bond is unavailable generally, the department may adopt
   68  rules for alternative methods to comply with this subsection.
   69  With respect to such alternative methods for compliance, the
   70  department must be guided by the past business performance and
   71  good reputation and character of the proposed title insurance
   72  agency. A surety bond is deemed to be unavailable generally if
   73  the prevailing annual premium exceeds 25 percent of the
   74  principal amount of the bond.
   75         Section 2. This act shall take effect July 1, 2012.