HB 4147

1	A bill to be entitled
2	An act relating to title insurance agency licensure;
3	amending s. 626.8418, F.S.; deleting a requirement
4	that an applicant for licensure as a title insurance
5	agency deposit with the Department of Financial
6	Services a specified amount or post a surety bond of
7	like amount payable to the department for the benefit
8	of appointing title insurers damaged by the title
9	insurance agency's failure to meet contractual
10	obligations; providing an effective date.
11
12	Be It Enacted by the Legislature of the State of Florida:
13
14	Section 1.  Section 626.8418, Florida Statutes, is amended
15	to read:
16	626.8418  Application for title insurance agency license.-
17	Prior to doing business in this state as a title insurance
18	agency, a title insurance agency must meet all of the following
19	requirements:
20	(1)  The applicant must file with the department an
21	application for a license as a title insurance agency, on
22	printed forms furnished by the department, that includes all of
23	the following:
24	(1)(a)  The name of each majority owner, partner, officer,
25	and director of the agency.
26	(2)(b)  The residence address of each person required to be
27	listed under subsection (1) paragraph (a).
28	(3)(c)  The name of the agency and its principal business
29	address.
30	(4)(d)  The location of each agency office and the name
31	under which each agency office conducts or will conduct
32	business.
33	(5)(e)  The name of each agent to be in full-time charge of
34	an agency office and specification of which office.
35	(6)(f)  Such additional information as the department
36	requires by rule to ascertain the trustworthiness and competence
37	of persons required to be listed on the application and to
38	ascertain that such persons meet the requirements of this code.
39	(2)  The applicant must have deposited with the department
40	securities of the type eligible for deposit under s. 625.52 and
41	having at all times a market value of not less than $35,000. In
42	place of such deposit, the title insurance agency may post a
43	surety bond of like amount payable to the department for the
44	benefit of any appointing insurer damaged by a violation by the
45	title insurance agency of its contract with the appointing
46	insurer. If a properly documented claim is timely filed with the
47	department by a damaged title insurer, the department may remit
48	an appropriate amount of the deposit or the proceeds that are
49	received from the surety in payment of the claim. The required
50	deposit or bond must be made by the title insurance agency, and
51	a title insurer may not provide the deposit or bond directly or
52	indirectly on behalf of the title insurance agency. The deposit
53	or bond must secure the performance by the title insurance
54	agency of its duties and responsibilities under the issuing
55	agency contracts with each title insurer for which it is
56	appointed. The agency may exchange or substitute other
57	securities of like quality and value for securities on deposit,
58	may receive the interest and other income accruing on such
59	securities, and may inspect the deposit at all reasonable times.
60	Such deposit or bond must remain unimpaired as long as the title
61	insurance agency continues in business in this state and until 1
62	year after termination of all title insurance agency
63	appointments held by the title insurance agency. The title
64	insurance agency is entitled to the return of the deposit or
65	bond together with accrued interest after such year has passed,
66	if no claim has been made against the deposit or bond. If a
67	surety bond is unavailable generally, the department may adopt
68	rules for alternative methods to comply with this subsection.
69	With respect to such alternative methods for compliance, the
70	department must be guided by the past business performance and
71	good reputation and character of the proposed title insurance
72	agency. A surety bond is deemed to be unavailable generally if
73	the prevailing annual premium exceeds 25 percent of the
74	principal amount of the bond.
75	Section 2.  This act shall take effect July 1, 2012.

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