DAR File No. 29130

Insurance, Title and Escrow Commission

R592-2

Title Insurance Administrative Hearings and Penalty Imposition

NOTICE OF PROPOSED RULE

DAR File No.: 29130
Filed: 10/16/2006, 03:24
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The changes to this rule are being made to make the rule comply more closely with the requirements of the Code.

Summary of the rule or change:

The rule clarifies the relationship between the Title and Escrow Commission and the Insurance Commissioner regarding administrative hearings and penalty imposition.

State statutory or constitutional authorization for this rule:

Section 31A-2-404

Anticipated cost or savings to:

the state budget:

This rule will not change the work of the department to the degree that it will require a change in personnel, nor a change in revenues.

local governments:

Local government will not be affected by the changes to this rule since it deals only with the relationship between the department and its licensees.

other persons:

The changes to the rule clarify the relationship between the Title and Escrow Commission and the Insurance Department as well as their responsibilities in title hearings and the imposition of penalties. Persons outside of the department and the Commission will not be affected by these changes.

Compliance costs for affected persons:

The changes to the rule clarify the relationship between the Title and Escrow Commission and the Insurance Department as well as their responsibilities in title hearings and the imposition of penalties. Persons outside of the department and the Commission will not be affected by these changes.

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

The changes to this rule will have 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:

Insurance
Title and Escrow Commission
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

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:

12/01/2006

This rule may become effective on:

12/08/2006

Authorized by:

Jilene Whitby, Information Specialist

R592. Insurance, Title and Escrow Commission.

R592-2. Title Insurance Administrative Hearings and Penalty Imposition.

R592-2-2. Purpose and Scope.

(1) The purpose of this rule is

(a) to establish procedures for the Commission:

(i) to delegate authority to the department's administrative law judge to conduct an administrative hearing[ for a title license applicant, a title licensee, or a title continuing education program]; or

(ii) to conduct an administrative hearing[ for a title license applicant, a title licensee, or a title continuing education program]; and

(b) to establish procedures for the Commission, after an investigation by the commissioner, to impose penalties and for the commissioner to concur with the penalties[ imposed on a title licensee, applicant for a title license, unlicensed person doing business as a title licensee, and continuing education providers submitting title continuing education programs for approval, for violations of statute, rule, Order of the Commissioner, or Order of the Commission].

(2) This rule applies to all title licensees, applicants for a title insurance license, unlicensed persons doing business as a title licensee, and continuing education providers submitting title continuing education programs for approval.

 

R592-2-4. Administrative Hearings.

[The Title and Escrow Commission may delegate the conduct of administrative hearings involving a title license applicant, a title licensee, or a title continuing education program to the department's administrative law judge.

](1) [The Commission will receive a periodic report listing each administrative hearing requested by a title license applicant, a title licensee, a title continuing education program or by the commissioner to resolve an investigation of a title licensee's conduct, the denial of a title license application, or the disapproval of a title continuing education program]When an investigation involving title insurance or escrow is concluded and the commissioner or the respondent request an administrative hearing, the commissioner will report to the Commission the commissioner's conclusion and recommended disposition of the matter under investigation.

(2) The Commission will review the report at each meeting and, either:

(a) delegate the conduct of the requested administrative hearing to the department's administrative law judge; or

(b) determine that the Commission will conduct the requested administrative hearing.

(3) For an administrative hearing conducted by the Commission, the Commission will:

(a) set the date, time, and place of the administrative hearing;

(b) notify the title license applicant, the title licensee, or the continuing education program of the date, time, and place of the administrative hearing;

(c) conduct the hearing:

(i) hear the evidence; and

(ii) make a decision based on the evidence presented;

(d) impose penalties, with the concurrence of the commissioner, in accordance with Sections 31A-2-308, 31A-23a-111, 31A-23a-112, 31A-26-213, and 31A-26-214; and

(e) issue an Order on Hearing.

(4) The department's administrative law judge will assist the Commission in its conduct of an administrative hearing as required[by ruling on admissibility of evidence and motions pertaining to the hearing].

 

R592-2-5. Imposition of Penalties.

(1) [The department will investigate alleged violations of statute or rule by a title licensee, applicants for a title insurance license, unlicensed person doing business as a title licensee, and continuing education providers submitting title continuing education programs for approval.

(2) ]If the resolution of the investigation is other than an administrative hearing or is an administrative hearing conducted by the department's administrative law judge, and the administrative proceeding imposes a penalty, the Commission must concur with the penalty imposed, prior to the imposition of the penalty.

(2[3]) If the resolution of the investigation is an administrative hearing conducted by the Commission, and the administrative hearing imposes a penalty, the commissioner must concur with the penalty imposed, prior to the imposition of the penalty.

 

KEY: title insurance

Date of Enactment or Last Substantive Amendment: [September 30, 2005]2006

Authorizing, and Implemented or Interpreted Law: 31A-2-402