13RS HB448
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HB448

13RS

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HB 448 (BR 848) - J. Greer

     AN ACT relating to title insurance.
     Create new sections of Subtitle 22 of KRS Chapter 304 to adopt the National Association of Insurance Commissioners (NAIC) model legislation to establish a licensing procedure and the requirements for the business of title insurance, including licensure of title insurance agents, to be regulated by the Department of Insurance, except attorneys licensed and actively engaged in the private practice of law in this state including but not limited to the business of a title insurance agent; create a new section of Subtitle 220 of KRS Chapter 304 to authorize closing or settlement protection to indemnify a person or entity insured under a policy of title insurance against loss because of theft or misappropriation of settlement funds in connection with issuance of the title insurance policy or for failure of a settlement agent, title agent, or employee of the title insurer to comply with the written closing instructions to the extent that failure to follow the instructions relates to the title to that interest in land or the validity, enforceability and priority of the lien of the mortgage on that interest in land; amend KRS 304.22-030 to conform; EFFECTIVE JANUARY 1, 2014.

HB 448 - AMENDMENTS


     HCS - Delete Sections 1 to 15; create a new section of Subtitle 22 of KRS Chapter 304 to define terms; create a new section of Subtitle 22 of KRS Chapter 304 to prohibit any person from acting in the capacity of a title insurance agent with respect to risks in this state without being a licensed title insurance agent, another state licensee acceptable to the commissioner of insurance or an attorney licensed in this state who is actively engaged in the practice of law, including but not limited to the business of a title insurance agent; authorize the commissioner of insurance to require title insurance agents and their delegates to maintain an errors and omission policy and fidelity coverage if the agent handles escrow or security deposits and authorizes the commissioner of insurance to promulgate regulations specifying acceptable alternatives to such coverage for errors and omission or fidelity; require title insurance agents to maintain sufficient records for the commissioner of insurance to adequately determine that the agent complies with the requirements of Section 1 to 3 of this Act, including specific record entries, documents to be kept, and retention time required; create a new section of Subtitle 22 of KRS Chapter 304 to subject title insurance agents to other applicable provisions of the insurance code unless specifically addressed by this Act or other state and federal law; create a new section of Subtitle 22 of KRS Chapter 304 to authorize the commissioner of insurance to promulgate administrative regulations and orders necessary to carry out the provisions of this Act; retain the provision to create a new section of Subtitle 22 of KRS Chapter 304 to authorize closing or settlement protection to indemnify a person or entity insured under a policy of title insurance against loss because of theft or misappropriation of settlement funds in connection with issuance of the title insurance policy or for failure of a settlement agent, title agent, or employee of the title insurer to comply with the written closing instructions to the extent that failure to follow the instructions relates to the title to that interest in land or the validity, enforceability and priority of the lien of the mortgage on that interest in land; retain the provision to amend KRS 304.22-030 to conform; EFFECTIVE January 1, 2014.
     HFA (1, M. Meredith) - Effective July 1, 2014.
     HFA (2, A. Koenig) - Amend the definition of "title insurance agent; to exclude attorneys and their employees as described in Section 2(1)(c) of this Act.

     Feb 19-introduced in House
     Feb 20-to Banking & Insurance (H)
     Feb 25-posted in committee
     Feb 27-reported favorably, 1st reading, to Consent Calendar with Committee Substitute ; floor amendments (1) and (2) filed to Committee Substitute
     Feb 28-2nd reading, to Rules; posted for passage in the Consent Orders of the Day for Friday, March 1, 2013
     Mar 1-taken from the Consent Orders of the Day, placed in the Regular Orders of the Day; 3rd reading, passed 90-0 with Committee Substitute, floor amendments (1) and (2)
     Mar 4-received in Senate
     Mar 5-to Banking & Insurance (S)

Vote History
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