DAR File No. 28508

Insurance, Title and Escrow Commission

R592-3

Submission of a Title Schedule of Filing

NOTICE OF CHANGE IN PROPOSED RULE

DAR File No.: 28508
Filed: 05/15/2006, 02:35
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

As a result of the hearing and comments received during the first comment period, additional changes are being proposed.

Summary of the rule or change:

The title of the "Schedule of Escrow Charges" form is being changed to "Schedule of Minimum Charges for Escrow Services" to emphasize that these are minimum charges. It has also been determined that marketing information does not need to be filed with the department. As a result, all references to "marketing information" have been eliminated from the rule. (DAR NOTE: This change in proposed rule has been filed to make additional changes to a proposed new rule that was published in the March 1, 2006, issue of the Utah State Bulletin, on page 36. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the change in proposed rule and the proposed new rule together to understand all of the changes that will be enforceable should the agency make this rule effective.)

State statutory or constitutional authorization for this rule:

Section 31A-2-404

Anticipated cost or savings to:

the state budget:

The changes to this rule will reduce the work of department's title specialists who will not be required to review and file marketing information filed by title agencies. The elimination of this filing will also save on storage for the documents. These changes will not affect department revenues or budget.

local governments:

The changes to this rule will have no effect on local government since the changes deal only with the relationship between the department and their licensees.

other persons:

There will be no added expense to licensees or consumers as a result of the proposed changes. There will be a savings in time and postage in the elimination of the requirement for title agencies to file marketing information with the department. This change should not affect consumers.

Compliance costs for affected persons:

There will be no added expense to licensees or consumers as a result of the proposed changes. There will be a savings in time and postage in the elimination of the requirement for title agencies to file marketing information with the department. This change should not affect consumers.

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

The proposed changes to this rule will save title agencies time and postage. 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:

07/03/2006

This rule may become effective on:

07/11/2006

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R592. Insurance, Title and Escrow Commission.

R592-3. [Submission of]Filing a [Title ]Schedule of Minimum Charges for Escrow Services[Charges Filing].

R592-3-1. Authority.

This rule is promulgated by the Title and Escrow Commission pursuant to Section 31A-2-404.

R592-3-2. Purpose and Scope.

(1) The purpose of this rule is to set forth the procedures for filing a Schedule of Minimum[Escrow] Charges for Escrow Services pursuant to Section 31A-19a-209.

(2) This rule applies to all title insurers, agencies and producers providing escrow services in Utah.

R592-3-3. Required Documents.

(1) The department requires that the documents described in this rule shall be used for all filings. Actual copies may be used or you may adapt them to your word processing system. If adapted, the content, size, font, and format must be similar.

(2) The following filing documents are available on the department's web site, http://www.insurance.utah.gov/RF-Flgs.html.

(a) "Schedule of Minimum[Escrow] Charges for Escrow Services;"

(b) ["Title Marketing Information Package Filing Schedule;" and

(c) ]"Transmittal Document for Title Agency or Title Producer."

R592-3-4. Definitions.

In addition to the definitions of Sections 31A-1-301, 31A-2-402,and 31A-19a-102, the following definitions shall apply for the purpose of this rule:

(1) "Certification" means that a filing being submitted is in compliance with the Utah Insurance Code.

(2) "File and Use" means a filing can be used, sold, or offered for sale after it has been filed with the department.

(3) "File Before Use" means a filing can be used, sold, or offered for sale after it has been filed with the department and a stated period of time has elapsed from the date filed.

(4) "Filer" means a person or entity who submits a filing.

(5) ["Marketing Information Package" means an information packet, a listing kit, a farm package or any other form of title evidence beyond that which is readily available in public records in the county in which the property is located.

(6) ]"Order to Prohibit Use" means an order issued by the commissioner that forbids the use of a filing.

([7]6) "Rejected" means a filing is:

(a) not submitted in accordance with Utah laws and rules;

(b) returned to the filer by the department with the reasons for rejection; and

(c) not considered filed with the department.

R592-3-5. General Filing Information.

(1) Each filing submitted must be accurate, consistent, complete, and contain all required documents in order for the filing to be processed in a timely and efficient manner.  The commissioner may request any additional information deemed necessary.

(2) Insurers and filers are responsible for assuring

compliance with Utah laws and rules. Filings not in compliance with Utah laws and rules are subject to regulatory action under Section 31A-2-308.

(3) Charges, supplementary information, and forms applying to a specific program or product may be submitted as one filing.

(4) A filing that does not comply with this rule will be rejected as incomplete and returned to the filer. A rejected filing is not considered filed with the department.

(5) Prior filings will not be researched to determine the purpose of the current filing.

(6) The department does not review or proofread every filing.

(a) A filing may be reviewed:

(i) when submitted;

(ii) as a result of a complaint;

(iii) during a regulatory examination or investigation; or

(iv) at any other time the department deems necessary.

(b) If a filing is reviewed and is not in compliance with Utah laws and rules, an ORDER TO PROHIBIT USE will be issued to the filer. The commissioner may require the filer to disclose deficiencies in forms or rating practices to affected consumers.

(7) Filing correction.

(a) No filing transmittal is required when clerical or typographical corrections are made to a filing previously filed if the corrected filing is submitted within 30 days of the date "Filed" with the department. The filer will need to reference the original filing.

(b) A new filing is required if the clerical or typographical corrections are made more than 30 days after the filed date of the original filing. The filer will need to reference the original filing.

(8) Filing withdrawal. A filer must notify the department when the filer withdraws a previously filed form, charge, or supplementary information.

R592-3-6. Filing Requirements.

(1) Only an individual who is authorized to act on behalf of the insurer, agency or producer can submit a filing.

(2) A complete filing consists of the following documents submitted in the following order:

(a) Utah Transmittal Document for Title Agency or Title Producer; and

(b) Schedule of Minimum[Escrow] Charges for Escrow Services;

[(c) Title Marketing Information Package Filing Schedule, if filing includes a marketing information package;

](3) Description of Filing. The filer must:

(a) indicate whether the filing is new, amending or replacing a previous filing, or contains charges that have been previously filed and are included for informational purposes;

(b) describe the filing and the purpose of the filing in detail in the Filing Description section of the transmittal; and

(c) if the filing is amending or replacing a previous filing:

(i) provide a detailed description of the changes; and

(ii) highlight the changed provisions.

(4) Transmittal Document for Title Agency or Title Producer. The entire transmittal form must be properly completed.

(5) Schedule of Minimum[Escrow] Charges for Escrow Services.

(a) An initial Schedule of Minimum[Escrow] Charges for Escrow Services filing is a file and use filing.

(b) A revised Schedule of Minimum[Escrow] Charges for Escrow Services filing is a use and file filing and is effective:

(i) thirty calendar days after the revised Schedule of Minimum[Escrow] Charges for Escrow Services is filed; or

(ii) a date specified by the filer that is later than 30 calendar days after the revised Schedule of Minimum[Escrow] Charges for Escrow Services is filed.[

(c) Marketing Information.

(i) Marketing information must be submitted using the Title Marketing Information Package Filing Schedule.

(ii) The initial charge or a revision to an initial charge for a marketing information package must be submitted using the Transmittal Document for Title Agency or Title Producer and a Title Marketing Information Package Filing Schedule.

(iii) The filing must include a copy of the marketing information package being filed.

(iv) The filer must maintain a record copy of each filed Marketing Information Package.]

(6) Return Notification Materials.

(a) Return notification materials are limited to:

(i) a copy of the transmittal; and

(ii) a self-addressed, stamped envelope.

(b) Notice of filing will not be provided unless return notification materials are submitted.

(c) Any extra information will be discarded.

(7) Certification.

(a) The filer must certify that a filing has been properly completed AND is in compliance with Utah laws and rules.

(b) A filing will be rejected if the certification is missing or incomplete.

(c) A certification that is inaccurate may subject the filer to administrative action.

. . . . . . .

KEY: title escrow filings

Date of Enactment or Last Substantive Amendment: 2006

Authorizing, and Implemented or Interpreted Law: 31A-2-404

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.