| 1 | A bill to be entitled |
| 2 | An act relating to title insurance; creating the Florida |
| 3 | 2008 Title Insurance Study Advisory Council; providing for |
| 4 | membership; providing for administrative support for the |
| 5 | council; providing responsibilities of the council; |
| 6 | authorizing the council to invite independent actuaries to |
| 7 | provide certain information; providing council meeting |
| 8 | requirements; requiring the council to file a report with |
| 9 | the Governor and Legislature; providing for termination of |
| 10 | the council; providing an effective date. |
| 11 |
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| 12 | WHEREAS, the Legislature finds that a stable and efficient |
| 13 | title insurance delivery system is necessary to promote the |
| 14 | economic well-being of the citizens of Florida, and |
| 15 | WHEREAS, Florida consumers have a right to effective and |
| 16 | affordable title insurance, and |
| 17 | WHEREAS, title insurance is essential to ensure homeowners |
| 18 | and landowners of the safety of real estate transfers in |
| 19 | Florida, and |
| 20 | WHEREAS, investors and lienholders require the security |
| 21 | accorded their business interests by a financially stable and |
| 22 | regulated title insurance industry, and |
| 23 | WHEREAS, a viable title insurance delivery system requires |
| 24 | efficient and comprehensive state oversight to regulate insurer |
| 25 | and agent solvency, education, licensing, and discipline and the |
| 26 | establishment of nondiscriminatory title insurance rates and |
| 27 | forms, and |
| 28 | WHEREAS, it is the express intent of the Legislature to |
| 29 | conduct a comprehensive review of the title insurance industry |
| 30 | prior to authorizing any substantive alterations to the |
| 31 | regulatory scheme, delivery of the product, or rules impacting |
| 32 | the conduct of the industry, NOW, THEREFORE, |
| 33 |
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| 34 | Be It Enacted by the Legislature of the State of Florida: |
| 35 |
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| 36 | Section 1. (1) This act may be cited as the "Florida 2008 |
| 37 | Title Insurance Study Advisory Council Act." |
| 38 | (2) The purpose of this act is to create an advisory |
| 39 | council to undertake a comprehensive examination of the title |
| 40 | insurance delivery system of this state with the ultimate goal |
| 41 | of making recommendations for legislation to promote a sound and |
| 42 | stable system to promote the safety of real property transfers |
| 43 | in this state. |
| 44 | (3) The Florida 2008 Title Insurance Study Advisory |
| 45 | Council is created. The council shall consist of the following |
| 46 | 23 members: |
| 47 | (a) The Governor or the Governor's designee. The Governor |
| 48 | or the Governor's designee shall serve as chair of the council. |
| 49 | (b) The Chief Financial Officer or the Chief Financial |
| 50 | Officer's designee. The Chief Financial Officer or the Chief |
| 51 | Financial Officer's designee shall serve as vice chair of the |
| 52 | council. |
| 53 | (c) One member of the Senate appointed by the President of |
| 54 | Senate. |
| 55 | (d) One member of the House of Representatives appointed |
| 56 | by the Speaker of the House of Representatives. |
| 57 | (e) The Insurance Consumer Advocate appointed pursuant to |
| 58 | s. 627.0613, Florida Statutes. |
| 59 | (f) The Commissioner of Insurance Regulation or the |
| 60 | commissioner's designee. |
| 61 | (g) The Secretary of Business and Professional Regulation |
| 62 | or the secretary's designee. |
| 63 | (h) Four representatives of title insurers doing business |
| 64 | in this state from four different title insurers appointed by |
| 65 | the President of the Senate and four representatives of title |
| 66 | insurers doing business in this state from four different title |
| 67 | insurers appointed by the Speaker of the House of |
| 68 | Representatives. No more than one such appointment may be named |
| 69 | for each affiliated group of corporations as defined in s. |
| 70 | 624.509(5)(a)2., Florida Statutes. |
| 71 | (i) Three independent licensed title insurance agents |
| 72 | appointed by the President of the Senate from a list of five |
| 73 | agents submitted by the Florida Land Title Association. |
| 74 | (j) Three independent licensed title insurance agents |
| 75 | appointed by the Speaker of the House of Representatives from a |
| 76 | list of five agents submitted by the Florida Land Title |
| 77 | Association. |
| 78 | (k) Two members of the Real Property, Probate and Trust |
| 79 | Law Section of The Florida Bar who are practicing real estate |
| 80 | attorneys not employed by a title insurer. The designation of |
| 81 | such members shall be made by the Real Property, Probate and |
| 82 | Trust Law Section of The Florida Bar. |
| 83 | (4) The council shall be administratively supported by the |
| 84 | staff of the Office of the Governor. The Department of Financial |
| 85 | Services, the Office of Insurance Regulation, and other agencies |
| 86 | of the state, as well as staff of the applicable legislative |
| 87 | committees, shall supply any information, assistance, and |
| 88 | facilities that are deemed necessary by the council to carry out |
| 89 | its duties. |
| 90 | (5) The council shall undertake a comprehensive |
| 91 | examination of the title insurance delivery system in this state |
| 92 | and shall include in its study consideration of: |
| 93 | (a) The historical development of the title insurance |
| 94 | industry in this state and its uniqueness among other lines of |
| 95 | insurance. |
| 96 | (b) The current regulatory structure under which oversight |
| 97 | responsibility is shared between different state agencies. |
| 98 | (c) The adequacy of funds and agency personnel to exercise |
| 99 | regulatory oversight. |
| 100 | (d) The adequacy of current mechanisms and expertise to |
| 101 | gather meaningful data to properly evaluate and adopt title |
| 102 | insurance rates. |
| 103 | (e) Such other topics as the council deems necessary to |
| 104 | conduct a thorough examination of the title insurance industry. |
| 105 | (6) The council, at the direction of the chair, may invite |
| 106 | independent actuaries with title insurance expertise to provide |
| 107 | information and appear before the council to aid in performing |
| 108 | its duties. |
| 109 | (7) The council shall hold its initial meeting no later |
| 110 | than August 1, 2008, in Tallahassee. Staff for the council chair |
| 111 | shall schedule and organize the initial meeting. Subsequent |
| 112 | meetings of the council must be held in Tallahassee according to |
| 113 | a schedule developed by the chair. |
| 114 | (8) The council shall submit a final report, setting forth |
| 115 | findings and specific legislative recommendations, to the |
| 116 | Governor, the President of the Senate, and the Speaker of the |
| 117 | House of Representatives on or before December 31, 2009. The |
| 118 | council shall terminate after submitting its final report but |
| 119 | not later than December 31, 2009. |
| 120 | Section 2. This act shall take effect July 1, 2008. |