This filing was published in the 06/15/2009, issue, Vol. 2009, No. 12, of the Utah State Bulletin.
Insurance, Title and Escrow Commission
Title Insurance Administration Hearings and Penalty Imposition
NOTICE OF PROPOSED RULE
DAR File No.: 32701
Filed: 06/01/2009, 05:47
Received by: NL
Purpose of the rule or reason for the change:
This rule is being changed to set procedures for the commissioner and commission when an informal adjudicative procedure is used to resolve a title insurance matter. The rule also sets procedures for an administrative hearing.
Summary of the rule or change:
Section R592-2-1 notes that Subsections 31A-2-404(2)(e) and (h) provide the process for conducting a hearing or delegating it rather than for the making of rules dealing with hearings. Section R592-2-2 has been rewritten with new definitions for "Commission", "Commissioner", and "Title insurance matters". Two new sections have been added, Section R592-2-4, Title Insurance Matters Referred for Enforcement, and Section R592-2-5, Imposition of a Penalty When an Informal Adjudicative Proceeding is Used to Resolve a Title Insurance Matter. The rule eliminates the reference to "department's administrative law judge" and adds "commissioner's administrative law judge". Section R592-2-5 also adds a penalty matrix for informal adjudication proceedings. The new renumbered Section R592-2-6 explains the process of going to an administrative hearing. It clarifies the rules of the commissioner and the commission. The new renumbered Section R592-2-7 sets the procedure for the commission to impose penalties in the case of an informal adjudicative proceeding, a stipulation and order, an administrative hearing conducted by the administrative law judge, and an administrative hearing conducted by the commission. Section R592-2-6 in now Section R592-2-8, and Section R592-2-7 is now Section R592-2-9.
State statutory or constitutional authorization for this rule:
Anticipated cost or savings to:
the state budget:
This rule will have no fiscal impact on the department. It sets procedures and penalties to be used by the commission in an informal adjudicative proceeding. The penalties set by the commission must then be approved or disapproved by the commissioner.
This rule will have no effect on local governments since it deals solely with the relationship between the department and their insurers.
small businesses and persons other than businesses:
This rule will have no fiscal impact on small businesses. It will let those who are involved in an informal adjudication know what the penalties will be for various violations.
Compliance costs for affected persons:
This rule will have no fiscal impact on individuals, insurers, agencies, etc. It will let those who are involved in an informal adjudication know what the penalties will be for various violations. The rule sets procedures to be followed and penalties to be set in informal adjudicative proceedings and administrative hearings.
Comments by the department head on the fiscal impact the rule may have on businesses:
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 firstname.lastname@example.org
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:
Interested persons may attend a public hearing regarding this rule:
7/13/2009 at 9:00 AM, East Building ( behind the Capitol), 420 N State Street, Copper Room, Salt Lake City, UT
This rule may become effective on:
Jilene Whitby, Information Specialist
R592. Insurance, Title and Escrow Commission.
R592-2. Title Insurance Administrative Hearings and Penalty Imposition.
This rule is
promulgated pursuant to Subsections 31A-2-404(2)(e) and (h), [
which direct the Title and Escrow Commission to make rules
pertaining to the conduct of title administrative hearings, the delegation of] title administrative hearing[ s,] and [ the
imposition of] [ penalties ]for
violation[ s] of statute or rule.
R592-2-2. Purpose and Scope.
(1) The purpose of this rule [
(a) to establish procedures for the [
(i) to delegate [
]to the [ department's
administrative law judge to] conduct an administrative
(ii) to conduct an administrative hearing; 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.
(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.
licensee" has the same meaning as found in Section 31A-2-402(3).]
4]. Administrative Hearing[ s].
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.]
The Commission][ will review the
report at each meeting and, either]:
(a) delegate the conduct of the [
hearing to the [ department's administrative law judge]; or
determine that the Commission will ]conduct
the [ requested ]administrative hearing.
(3) For an
administrative hearing conducted by the [
the [ Commission][ will]:
(a) set [
the] date, time, and
place [ of] the administrative hearing;
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
] (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 [
administrative law judge [ will] assist the [ Commission]
in its conduct of an administrative hearing[ as required].
5]. Imposition of Penalties.
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) 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
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.]
7]. Enforcement Date.
The commissioner will begin enforcing this rule upon the rule's effective date.
KEY: title insurance
Date of Enactment or Last Substantive
December 13, 2006]
Authorizing, and Implemented or Interpreted Law: 31A-2-402
Text to be deleted is struck through and surrounded by brackets (e.g., [
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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 email@example.com
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.
Last modified: 07/14/2009 8:03 PM