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