DAR File No. 28105

Insurance, Title and Escrow Commission

R592-1

Title Insurance Licensing

NOTICE OF PROPOSED RULE

DAR File No.: 28105
Filed: 07/27/2005, 09:16
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to establish rules for the licensing of a title licensee and to concur in the issuance and renewal of a title licensee in accordance with Subsection 31A-2-404(2)(b).

Summary of the rule or change:

This rule establishes rules for the licensing of a title licensee and concurs in the issuance and renewal of a title licensee in accordance with Subsection 31A-2-404(2)(b).

State statutory or constitutional authorization for this rule:

Section 31A-2-404

Anticipated cost or savings to:

the state budget:

This rule will not require anything new of department licensees or it's staff, therefore, there will be no change in filing requirements or fees paid to the department or state's budget.

local governments:

This rule only applies to the relationship between the Insurance Department and its licensees. It does not affect local government laws or procedures.

other persons:

This rule establishes procedures to be followed by the Commission and the department and does not affect costs to the title industry or their consumers.

Compliance costs for affected persons:

This rule establishes procedures to be followed by the Commission and the department and does not affect costs to the title industry or their consumers.

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no fiscal impact on Utah businesses. D. Kent Michie, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

09/14/2005

This rule may become effective on:

09/15/2005

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R592. Insurance, Title and Escrow Commission.

R592-1. Title Insurance Licensing.

R592-1-1. Authority.

This rule is promulgated pursuant to Subsections 31A-2-404(2)(a)(ii) and (b), which direct the Title and Escrow Commission to make rules pertaining to the licensing of a title licensee and require the Title and Escrow Commission's concurrence in the issuance and renewal of title licensee licenses.

R592-1-2. Purpose and Scope.

(1) The purpose of this rule is:

(a) to establish rules for the licensing of a title licensee; and

(b) to concur in the issuance and renewal of a title license in accordance with Section 31A-2-404(2)(b).

(2) This rule applies to all title licensees and applicants for a title insurance license or renewal of a title insurance license.

R592-1-3. Definitions.

"Title licensee" has the same meaning as found in Section 31A-2-402(3).

R592-1-4. Licensing.

The Commission hereby grants its preliminary concurrence to the issuance or renewal of title insurance licenses issued by the commissioner, subject to final concurrence as specified in Section 5, to an applicant that:

(1) complies with Sections 31A-23a-104, 31A-23a-105, 31A-23a-106, 31A-23a-107, 31A-23a-108, and 31A-23a-204; and

(2) complies with Section 31A-23a-202 as an applicant for a renewal of a license; and

(3) meets all other requirements for the issuance of a license.

R592-1-5. Commission Concurrence with License Issuance or Renewal.

(1) The commissioner will report to the Title and Escrow Commission, at an interval and in a format acceptable to the commissioner and the Commission, the names of title licensee applicants or licensees:

(a) who were issued an initial license; and

(b) who were issued a renewal license.

(2) At a meeting of the Commission, the Commission shall give final concurrence or shall not concur with the licensing action of the commissioner.

(3) If the Commission votes to not concur with a licensing action of the commissioner for a licensee, the commissioner shall commence an administrative proceeding under the Utah Administrative Procedures Act to revoke, suspend, limit, or place on probation that license.

R592-1-6. Severability.

If any section, term, or provision of this rule shall be adjudged invalid for any reason, such judgment shall not affect, impair or invalidate any other section, term, or provision of this rule and the remaining sections, terms, and provisions shall be and remain in full force.

R592-1-7. Enforcement Date.

The commissioner will begin enforcing this rule upon the rule's effective date.

KEY: title insurance

2005

31A-2-402

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.