Senate Bill sb0636
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Florida Senate - 2007 SB 636
By Senator Lawson
6-596-07 See HB 111
1 A bill to be entitled
2 An act relating to title insurance; amending s.
3 626.84201, F.S.; providing additional
4 requirements for nonresident title insurance
5 agent licensure; amending s. 626.9541, F.S.;
6 revising unlawful rebate specifications;
7 amending s. 627.7711, F.S.; revising
8 definitions; amending s. 627.780, F.S.;
9 providing an exception to a prohibition against
10 dealing in certain premiums; amending ss.
11 627.782 and 627.783, F.S.; revising rate and
12 rate-deviation requirements; amending s.
13 627.7845, F.S.; revising determination of
14 insurability and records retention
15 requirements; providing an effective date.
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17 Be It Enacted by the Legislature of the State of Florida:
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19 Section 1. Section 626.84201, Florida Statutes, is
20 amended to read:
21 626.84201 Nonresident title insurance
22 agents.--Notwithstanding s. 626.8414(2), the department, upon
23 application and payment of the fees specified in s. 624.501,
24 may issue a license as a nonresident title insurance agent to
25 an individual not a resident of this state in the same manner
26 applicable to the licensure of nonresident general lines
27 agents under the provisions of s. 626.741, provided the
28 individual passes the examination for licensure required under
29 s. 626.221. Nonresident title insurance agents licensed
30 pursuant to this section must complete the continuing
31 education requirements of s. 626.2815 in the same manner as
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Florida Senate - 2007 SB 636
6-596-07 See HB 111
1 resident title insurance agents. Sections 626.742 and 626.743
2 apply to nonresident title insurance agents.
3 Section 2. Paragraph (h) of subsection (1) of section
4 626.9541, Florida Statutes, is amended to read:
5 626.9541 Unfair methods of competition and unfair or
6 deceptive acts or practices defined.--
7 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR
8 DECEPTIVE ACTS.--The following are defined as unfair methods
9 of competition and unfair or deceptive acts or practices:
10 (h) Unlawful rebates.--
11 1. Except as otherwise expressly provided by law, or
12 in an applicable filing with the office, knowingly:
13 a. Permitting, or offering to make, or making, any
14 contract or agreement as to such contract other than as
15 plainly expressed in the insurance contract issued thereon;
16 b. Paying, allowing, or giving, or offering to pay,
17 allow, or give, directly or indirectly, as inducement to such
18 insurance contract, any unlawful rebate of premiums payable on
19 the contract, any special favor or advantage in the dividends
20 or other benefits thereon, or any valuable consideration or
21 inducement whatever not specified in the contract;
22 c. Giving, selling, or purchasing, or offering to
23 give, sell, or purchase, as inducement to such insurance
24 contract or in connection therewith, any stocks, bonds, or
25 other securities of any insurance company or other
26 corporation, association, or partnership, or any dividends or
27 profits accrued thereon, or anything of value whatsoever not
28 specified in the insurance contract.
29 2. Nothing in paragraph (g) or subparagraph 1. of this
30 paragraph shall be construed as including within the
31 definition of discrimination or unlawful rebates:
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Florida Senate - 2007 SB 636
6-596-07 See HB 111
1 a. In the case of any contract of life insurance or
2 life annuity, paying bonuses to all policyholders or otherwise
3 abating their premiums in whole or in part out of surplus
4 accumulated from nonparticipating insurance; provided that any
5 such bonuses or abatement of premiums is fair and equitable to
6 all policyholders and for the best interests of the company
7 and its policyholders.
8 b. In the case of life insurance policies issued on
9 the industrial debit plan, making allowance to policyholders
10 who have continuously for a specified period made premium
11 payments directly to an office of the insurer in an amount
12 which fairly represents the saving in collection expenses.
13 c. Readjustment of the rate of premium for a group
14 insurance policy based on the loss or expense thereunder, at
15 the end of the first or any subsequent policy year of
16 insurance thereunder, which may be made retroactive only for
17 such policy year.
18 d. Issuance of life insurance policies or annuity
19 contracts at rates less than the usual rates of premiums for
20 such policies or contracts, as group insurance or employee
21 insurance as defined in this code.
22 e. Issuing life or disability insurance policies on a
23 salary savings, bank draft, preauthorized check, payroll
24 deduction, or other similar plan at a reduced rate reasonably
25 related to the savings made by the use of such plan.
26 3.a. No title insurer, or any member, employee,
27 attorney, agent, or agency thereof, shall pay, allow, or give,
28 or offer to pay, allow, or give, directly or indirectly, as
29 inducement to title insurance, or after such insurance has
30 been effected, any rebate or abatement of the agent's,
31 agency's, or title insurer's share of the premium or any other
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Florida Senate - 2007 SB 636
6-596-07 See HB 111
1 charge or fee for related title services below the cost for
2 providing such services, or provide any special favor or
3 advantage, or any monetary consideration or inducement
4 whatever. Nothing herein contained shall preclude an abatement
5 in an attorney's fee charged for legal services.
6 b. Nothing in this subparagraph shall be construed as
7 prohibiting the payment of fees to attorneys at law duly
8 licensed to practice law in the courts of this state, for
9 professional services, or as prohibiting the payment of earned
10 portions of the premium to duly appointed agents or agencies
11 who actually perform services for the title insurer. Nothing
12 in this subparagraph shall be construed as prohibiting a
13 rebate or abatement of an attorney's fee charged for
14 professional services or the agent's share of the premium or
15 any other agent charge or fee to the person responsible for
16 paying the premium, charge, or fee.
17 c. No insured named in a policy, or any other person
18 directly or indirectly connected with the transaction
19 involving the issuance of such policy, including, but not
20 limited to, any mortgage broker, real estate broker, builder,
21 or attorney, any employee, agent, agency, or representative
22 thereof, or any other person whatsoever, shall knowingly
23 receive or accept, directly or indirectly, any rebate or
24 abatement of any portion of the title insurance premium or of
25 any other charge or fee said charge, or any monetary
26 consideration or inducement whatsoever, except other than as
27 set forth in sub-subparagraph b.
28 Section 3. Subsection (1) of section 627.7711, Florida
29 Statutes, is amended, and subsection (4) is added to that
30 section, to read:
31 627.7711 Definitions.--As used in this part, the term:
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Florida Senate - 2007 SB 636
6-596-07 See HB 111
1 (1)(a) "Closing Related title services" means services
2 performed by a licensed title insurer, or title insurance
3 agent or agency, or attorney agent in the agent's or agency's
4 capacity as such, including, but not limited to, preparing or
5 obtaining a title search, examining title, examining searches
6 of the records of a Uniform Commercial Code filing office and
7 such other information as may be necessary, preparing
8 documents necessary to close the transaction, conducting the
9 closing, or handling the disbursing of funds related to the
10 closing in a real estate closing transaction in which a title
11 insurance commitment or policy is to be issued. The premium,
12 together with the charge for related title services,
13 constitutes the regular title insurance premium.
14 (b) "Primary title services" means determining
15 insurability in accordance with sound underwriting practices
16 based upon evaluation of a reasonable title search and
17 examination of the title or a search of the records of a
18 Uniform Commercial Code filing office and such other
19 information as may be necessary, determination and clearance
20 of underwriting objections and requirements to eliminate risk,
21 preparation and issuance of a title insurance commitment
22 setting forth the requirements to insure, and preparation and
23 issuance of the policy. Such services do not include closing
24 services or title searches, for which a separate charge is or
25 separate charges are made.
26 (4) "Title search" means the compiling of title
27 information from official or public records.
28 Section 4. Subsection (1) of section 627.780, Florida
29 Statutes, is amended to read:
30 627.780 Illegal dealings in risk premium.--
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Florida Senate - 2007 SB 636
6-596-07 See HB 111
1 (1) A person may not knowingly quote, charge, accept,
2 collect, or receive a premium for title insurance other than
3 the premium adopted by the commission, except as provided in
4 s. 626.9541(1)(h)3.b.
5 Section 5. Subsection (1) of section 627.782, Florida
6 Statutes, is amended to read:
7 627.782 Adoption of rates.--
8 (1) Subject to the rating provisions of this code, the
9 commission must adopt a rule specifying the premium to be
10 charged in this state by title insurers for the respective
11 types of title insurance contracts and, for policies issued
12 through agents or agencies, the percentage of such premium
13 required to be retained by the title insurer which shall not
14 be less than 30 percent. However, in a transaction subject to
15 the Real Estate Settlement Procedures Act of 1974, 12 U.S.C.
16 ss. 2601 et seq., as amended, no portion of the premium
17 attributable to providing a primary title service shall be
18 paid to or retained by any person who does not actually
19 perform or is not liable for the performance of such service.
20 The commission may, by rule, establish limitations on related
21 title services charges made in addition to the premium based
22 upon the expenses associated with the services rendered and
23 other relevant factors.
24 Section 6. Subsection (1) of section 627.783, Florida
25 Statutes, is amended to read:
26 627.783 Rate deviation.--
27 (1) A title insurer may petition the office for an
28 order authorizing a specific deviation from the adopted
29 premium, and a title insurer or title insurance agent may
30 petition the office for an order authorizing and permitting a
31 specific deviation above the reasonable charge for related
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Florida Senate - 2007 SB 636
6-596-07 See HB 111
1 title services rendered specified in s. 627.782(1). The
2 petition shall be in writing and sworn to and shall set forth
3 allegations of fact upon which the petitioner will rely,
4 including the petitioner's reasons for requesting the
5 deviation. Any authorized title insurer, agent, or agency may
6 join in the petition for like authority to deviate or may file
7 a separate petition praying for like authority or opposing the
8 deviation. The office shall rule on all such petitions
9 simultaneously.
10 Section 7. Subsections (1), (2), and (3) of section
11 627.7845, Florida Statutes, are amended to read:
12 627.7845 Determination of insurability required;
13 preservation of evidence of title search and examination.--
14 (1) A title insurer may not issue a title insurance
15 commitment, endorsement, or title insurance policy until the
16 title insurer has caused to be made conducted a determination
17 of insurability based upon the evaluation of a reasonable
18 title search and examination of the title or a search of the
19 records of a Uniform Commercial Code filing office, as
20 applicable, has examined such other information as may be
21 necessary, and has caused to be made a determination of
22 insurability of title or the existence, attachments,
23 perfection, and priority of a Uniform Commercial Code security
24 interest, including endorsement coverages, in accordance with
25 sound underwriting practices.
26 (2) The title insurer shall cause the evidence of the
27 determination of insurability and the reasonable title search
28 and examination of the title or search of the records of a
29 Uniform Commercial Code filing office to be preserved and
30 retained in its files or in the files of its title insurance
31 agent or agency for a period of not less than 7 years after
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Florida Senate - 2007 SB 636
6-596-07 See HB 111
1 the title insurance commitment, title insurance policy, or
2 guarantee of title was issued. The title insurer or agent or
3 agency must produce the evidence required to be maintained by
4 this subsection at its offices upon the demand of the office.
5 Instead of retaining the original evidence, the title insurer
6 or the title insurance agent or agency may, in the regular
7 course of business, establish a system under which all or part
8 of the evidence is recorded, copied, or reproduced by any
9 photographic, photostatic, microfilm, microcard, miniature
10 photographic, or other process which accurately reproduces or
11 forms a durable medium for reproducing the original.
12 (3) The title insurer or its agent or agency must
13 maintain a record of the actual risk premium charged and
14 related title service charges made for issuance of the policy
15 and any endorsements in its files for a period of not less
16 than 7 years. The title insurer, agent, or agency must produce
17 the record at its office upon demand of the office.
18 Section 8. This act shall take effect October 1, 2007.
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