Florida Senate - 2012                      CS for CS for SB 1404
       
       
       
       By the Committees on Judiciary; and Banking and Insurance; and
       Senator Altman
       
       
       
       590-03217-12                                          20121404c2
    1                        A bill to be entitled                      
    2         An act relating to title insurance; amending s.
    3         626.2815, F.S.; specifying continuing education
    4         requirements for title insurance agents; amending s.
    5         626.8437, F.S.; specifying additional grounds to deny,
    6         suspend, revoke, or refuse to renew or continue the
    7         license or appointment of a title insurance agent or
    8         agency; amending s. 626.8473, F.S.; requiring an
    9         attorney serving as a title or real estate settlement
   10         agent to deposit and maintain certain funds in a
   11         separate trust account and permit the account to be
   12         audited by the applicable title insurer, unless
   13         prohibited by the rules of The Florida Bar; amending
   14         s. 627.777, F.S.; providing procedures and
   15         requirements relating to the approval or disapproval
   16         of title insurance forms by the Office of Insurance
   17         Regulation; amending s. 627.782, F.S.; requiring title
   18         insurance agencies and certain insurers to submit
   19         specified information to the office to assist in the
   20         analysis of title insurance premium rates, title
   21         search costs, and the condition of the title insurance
   22         industry; requiring the Financial Services Commission
   23         to adopt rules; providing an effective date.
   24  
   25  Be It Enacted by the Legislature of the State of Florida:
   26  
   27         Section 1. Paragraph (d) of subsection (3) of section
   28  626.2815, Florida Statutes, is amended, and paragraph (l) is
   29  added to that subsection, to read:
   30         626.2815 Continuing education required; application;
   31  exceptions; requirements; penalties.—
   32         (3)
   33         (d) Any person who holds a license as a customer
   34  representative, limited customer representative, title agent,
   35  motor vehicle physical damage and mechanical breakdown insurance
   36  agent, crop or hail and multiple-peril crop insurance agent, or
   37  as an industrial fire insurance or burglary insurance agent and
   38  who is not a licensed life or health insurance agent, must shall
   39  be required to complete 10 hours of continuing education courses
   40  every 2 years.
   41         (1) For compliance periods beginning on or after October 1,
   42  2014, any person who holds a license as a title insurance agent
   43  must complete a minimum of 10 hours of continuing education
   44  courses every 2 years in title insurance and escrow management
   45  specific to this state and approved by the department, which
   46  must include at least 3 hours on the subject matter of ethics,
   47  rules, or compliance with state and federal regulations relating
   48  specifically to title insurance and closing services.
   49         Section 2. Subsection (11) is added to section 626.8437,
   50  Florida Statutes, to read:
   51         626.8437 Grounds for denial, suspension, revocation, or
   52  refusal to renew license or appointment.—The department shall
   53  deny, suspend, revoke, or refuse to renew or continue the
   54  license or appointment of any title insurance agent or agency,
   55  and it shall suspend or revoke the eligibility to hold a license
   56  or appointment of such person, if it finds that as to the
   57  applicant, licensee, appointee, or any principal thereof, any
   58  one or more of the following grounds exist:
   59         (11) Failure to timely submit data as required by s.
   60  627.782.
   61         Section 3. Subsection (8) is added to section 626.8473,
   62  Florida Statutes, to read:
   63         626.8473 Escrow; trust fund.—
   64         (8) An attorney shall deposit and maintain all funds
   65  received in connection with transactions in which the attorney
   66  is serving as a title or real estate settlement agent into a
   67  separate trust account that is maintained exclusively for funds
   68  received in connection with such transactions and permit the
   69  account to be audited by its title insurers, unless maintaining
   70  funds in the separate account for a particular client would
   71  violate applicable rules of The Florida Bar.
   72         Section 4. Section 627.777, Florida Statutes, is amended to
   73  read:
   74         627.777 Approval of forms.—
   75         (1) A title insurer may not issue or agree to issue any
   76  form of title insurance commitment, title insurance policy,
   77  other contract of title insurance, or related form until it is
   78  filed with and approved by the office. The office may not
   79  disapprove a title guarantee or policy form on the ground that
   80  it has on it a blank form for an attorney’s opinion on the
   81  title.
   82         (2) The office shall approve or disapprove a form filed for
   83  approval within 180 days after receipt.
   84         (3) When the office approves any form, it shall determine
   85  if the current rate in effect applies or if the coverages
   86  require the adoption of a rule pursuant to s. 627.782.
   87         (4) The office may revoke approval of any form after
   88  providing 180 days’ notice to the title insurer.
   89         (5) An insurer may not achieve a competitive advantage over
   90  any other insurer, agency, or agent as to rates or forms. If a
   91  form or rate is approved for an insurer, the office shall
   92  expeditiously approve the forms of other insurers who apply for
   93  approval if those forms contain identical coverages, rates, and
   94  deviations which have been approved under s. 627.783.
   95         Section 5. Subsection (8) of section 627.782, Florida
   96  Statutes, is amended to read:
   97         627.782 Adoption of rates.—
   98         (8) Each title insurance agency and insurer licensed to do
   99  business in this state and each insurer’s direct or retail
  100  business in this state shall maintain and submit information,
  101  including revenue, loss, and expense data, as the office
  102  determines necessary to assist in the analysis of title
  103  insurance premium rates, title search costs, and the condition
  104  of the title insurance industry in this state. This information
  105  must be transmitted to the office annually by March 31 of the
  106  year after the reporting year. The commission shall adopt rules
  107  relating to the collection and analysis of the data from the
  108  title insurance industry. The commission may, by rule, require
  109  licensees under this part to annually submit statistical
  110  information, including loss and expense data, as the department
  111  determines to be necessary to analyze premium rates, retention
  112  rates, and the condition of the title insurance industry.
  113         Section 6. This act shall take effect July 1, 2012.