HB 0075

CS

CHAMBER ACTION

1	The Justice Council recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to title insurance; amending ss. 624.608
7	and 627.7711, F.S.; revising the definitions of title
8	insurance and related and primary title services; amending
9	s. 627.7845, F.S.; revising requirements for title
10	insurers to issue title insurance; revising requirements
11	for title insurers to preserve and retain certain evidence
12	of searches and examinations; requiring the Office of
13	Insurance Regulation to approve title insurance forms and
14	rates for certain title insurance; providing effective
15	dates.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1.  Section 624.608, Florida Statutes, is amended
20	to read:
21	624.608  "Title insurance" defined.--"Title insurance" is:
22	(1)  Insurance of owners of real property or others having
23	an interest in real property or contractual interest derived
24	therefrom, or liens or encumbrances on real property, against
25	loss by encumbrance, or defective titles, or invalidity, or
26	adverse claim to title; or
27	(2)  Insurance of owners and secured parties of the
28	existence, attachment, perfection, and priority of security
29	interests in personal property under the Uniform Commercial
30	Code.
31
32	Title insurance shall not be construed to include policies that
33	insure for prospective loan defaults due to nonpayment of the
34	loan, including, but not limited to, credit insurance forms
35	similar to those defined in the NAIC Consumer Credit Insurance
36	Model Act or the Credit Personal Property Insurance Model Act.
37	Section 2.  Subsection (1) of section 627.7711, Florida
38	Statutes, is amended to read:
39	627.7711  Definitions.--As used in this part, the term:
40	(1)(a)  "Related title services" means services performed
41	by a title insurer or title insurance agent or agency, in the
42	agent's or agency's capacity as such, including, but not limited
43	to, preparing or obtaining a title search, examining title,
44	examining searches of the records of a Uniform Commercial Code
45	filing office and such other information as may be necessary,
46	preparing documents necessary to close the transaction,
47	conducting the closing, or handling the disbursing of funds
48	related to the closing in a real estate closing transaction in
49	which a title insurance commitment or policy is to be issued.
50	The premium, together with the charge for related title
51	services, constitutes the regular title insurance premium.
52	(b)  "Primary title services" means determining
53	insurability in accordance with sound underwriting practices
54	based upon evaluation of a reasonable search and examination of
55	the title or the records of a Uniform Commercial Code filing
56	office and such other information as may be necessary,
57	determination and clearance of underwriting objections and
58	requirements to eliminate risk, preparation and issuance of a
59	title insurance commitment setting forth the requirements to
60	insure, and preparation and issuance of the policy.
61	Section 3.  Subsections (1) and (2) of section 627.7845,
62	Florida Statutes, are amended to read:
63	627.7845  Determination of insurability required;
64	preservation of evidence of title search and examination.--
65	(1)  A title insurer may not issue a title insurance
66	commitment, endorsement, or title insurance policy until the
67	title insurer has caused to be conducted a reasonable search and
68	examination of the title or the records of a Uniform Commercial
69	Code filing office, as applicable, has examined and of such
70	other information as may be necessary, and has caused to be made
71	a determination of insurability of title or the existence,
72	attachments, perfection, and priority of a Uniform Commercial
73	Code security interest, including endorsement coverages, in
74	accordance with sound underwriting practices.
75	(2)  The title insurer shall cause the evidence of the
76	reasonable search and examination of the title or the records of
77	a Uniform Commercial Code filing office to be preserved and
78	retained in its files or in the files of its title insurance
79	agent or agency for a period of not less than 7 years after the
80	title insurance commitment, title insurance policy, or guarantee
81	of title was issued. The title insurer or agent or agency must
82	produce the evidence required to be maintained by this
83	subsection at its offices upon the demand of the office. Instead
84	of retaining the original evidence, the title insurer or the
85	title insurance agent or agency may, in the regular course of
86	business, establish a system under which all or part of the
87	evidence is recorded, copied, or reproduced by any photographic,
88	photostatic, microfilm, microcard, miniature photographic, or
89	other process which accurately reproduces or forms a durable
90	medium for reproducing the original.
91	Section 4.  The Office of Insurance Regulation shall
92	approve the title insurance form and corresponding rate for the
93	insurance described in s. 624.608(2), Florida Statutes, not
94	later than January 1, 2006.
95	Section 5.  This act shall take effect upon becoming a law,
96	except that sections 2 and 3 of this act shall take effect on
97	the date the Office of Insurance Regulation approves the title
98	insurance form and corresponding rate for insurance required
99	under section 4 of this act.

CODING: Words stricken are deletions; words underlined are additions.