CS/HB 937

1
A bill to be entitled
2An act relating to title insurance; creating the Florida
32008 Title Insurance Study Advisory Council; providing for
4membership; providing for administrative support for the
5council; providing responsibilities of the council;
6authorizing the council to invite independent actuaries to
7provide certain information; providing council meeting
8requirements; requiring the council to file a report with
9the Governor and Legislature; providing for termination of
10the council; providing an effective date.
11
12     WHEREAS, the Legislature finds that a stable and efficient
13title insurance delivery system is necessary to promote the
14economic well-being of the citizens of Florida, and
15     WHEREAS, Florida consumers have a right to effective and
16affordable title insurance, and
17     WHEREAS, title insurance is essential to ensure homeowners
18and landowners of the safety of real estate transfers in
19Florida, and
20     WHEREAS, investors and lienholders require the security
21accorded their business interests by a financially stable and
22regulated title insurance industry, and
23     WHEREAS, a viable title insurance delivery system requires
24efficient and comprehensive state oversight to regulate insurer
25and agent solvency, education, licensing, and discipline and the
26establishment of nondiscriminatory title insurance rates and
27forms, and
28     WHEREAS, it is the express intent of the Legislature to
29conduct a comprehensive review of the title insurance industry
30prior to authorizing any substantive alterations to the
31regulatory scheme, delivery of the product, or rules impacting
32the conduct of the industry, NOW, THEREFORE,
33
34Be It Enacted by the Legislature of the State of Florida:
35
36     Section 1.  (1)  This act may be cited as the "Florida 2008
37Title Insurance Study Advisory Council Act."
38     (2)  The purpose of this act is to create an advisory
39council to undertake a comprehensive examination of the title
40insurance delivery system of this state with the ultimate goal
41of making recommendations for legislation to promote a sound and
42stable system to promote the safety of real property transfers
43in this state.
44     (3)  The Florida 2008 Title Insurance Study Advisory
45Council is created. The council shall consist of the following
4623 members:
47     (a)  The Governor or the Governor's designee. The Governor
48or the Governor's designee shall serve as chair of the council.
49     (b)  The Chief Financial Officer or the Chief Financial
50Officer's designee. The Chief Financial Officer or the Chief
51Financial Officer's designee shall serve as vice chair of the
52council.
53     (c)  One member of the Senate appointed by the President of
54Senate.
55     (d)  One member of the House of Representatives appointed
56by the Speaker of the House of Representatives.
57     (e)  The Insurance Consumer Advocate appointed pursuant to
58s. 627.0613, Florida Statutes.
59     (f)  The Commissioner of Insurance Regulation or the
60commissioner's designee.
61     (g)  The Secretary of Business and Professional Regulation
62or the secretary's designee.
63     (h)  Four representatives of title insurers doing business
64in this state from four different title insurers appointed by
65the President of the Senate and four representatives of title
66insurers doing business in this state from four different title
67insurers appointed by the Speaker of the House of
68Representatives. No more than one such appointment may be named
69for each affiliated group of corporations as defined in s.
70624.509(5)(a)2., Florida Statutes.
71     (i)  Three independent licensed title insurance agents
72appointed by the President of the Senate from a list of five
73agents submitted by the Florida Land Title Association.
74     (j)  Three independent licensed title insurance agents
75appointed by the Speaker of the House of Representatives from a
76list of five agents submitted by the Florida Land Title
77Association.
78     (k)  Two members of the Real Property, Probate and Trust
79Law Section of The Florida Bar who are practicing real estate
80attorneys not employed by a title insurer. The designation of
81such members shall be made by the Real Property, Probate and
82Trust Law Section of The Florida Bar.
83     (4)  The council shall be administratively supported by the
84staff of the Office of the Governor. The Department of Financial
85Services, the Office of Insurance Regulation, and other agencies
86of the state, as well as staff of the applicable legislative
87committees, shall supply any information, assistance, and
88facilities that are deemed necessary by the council to carry out
89its duties.
90     (5)  The council shall undertake a comprehensive
91examination of the title insurance delivery system in this state
92and shall include in its study consideration of:
93     (a)  The historical development of the title insurance
94industry in this state and its uniqueness among other lines of
95insurance.
96     (b)  The current regulatory structure under which oversight
97responsibility is shared between different state agencies.
98     (c)  The adequacy of funds and agency personnel to exercise
99regulatory oversight.
100     (d)  The adequacy of current mechanisms and expertise to
101gather meaningful data to properly evaluate and adopt title
102insurance rates.
103     (e)  Such other topics as the council deems necessary to
104conduct a thorough examination of the title insurance industry.
105     (6)  The council, at the direction of the chair, may invite
106independent actuaries with title insurance expertise to provide
107information and appear before the council to aid in performing
108its duties.
109     (7)  The council shall hold its initial meeting no later
110than August 1, 2008, in Tallahassee. Staff for the council chair
111shall schedule and organize the initial meeting. Subsequent
112meetings of the council must be held in Tallahassee according to
113a schedule developed by the chair.
114     (8)  The council shall submit a final report, setting forth
115findings and specific legislative recommendations, to the
116Governor, the President of the Senate, and the Speaker of the
117House of Representatives on or before December 31, 2009. The
118council shall terminate after submitting its final report but
119not later than December 31, 2009.
120     Section 2.  This act shall take effect July 1, 2008.


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