HB 0075

CS

CHAMBER ACTION

1	The Insurance Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to title insurance; amending ss. 624.608,
7	626.841, and 627.7711, F.S.; revising the definitions of
8	title insurance, title insurance agent, title insurance
9	agency, and related and primary title services; amending
10	s. 627.7845, F.S.; revising requirements for title
11	insurers to issue title insurance; revising requirements
12	for title insurers to preserve and retain certain evidence
13	of searches and examinations; providing a procedure for a
14	transition period for certain title insurance policy
15	forms; providing an effective date.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1.  Section 624.608, Florida Statutes, is amended
20	to read:
21	624.608  "Title insurance" defined.--"Title insurance" is:
22	(1)  Insurance of owners of real property or others having
23	an interest in real property or contractual interest derived
24	therefrom, or liens or encumbrances on real property, against
25	loss by encumbrance, or defective titles, or invalidity, or
26	adverse claim to title; or
27	(2)  Insurance of owners and secured parties of the
28	existence, attachment, perfection, and priority of security
29	interests in personal property under the Uniform Commercial
30	Code.
31	Section 2.  Section 626.841, Florida Statutes, is amended
32	to read:
33	626.841  Definitions.--The term:
34	(1)  "Title insurance agent" means a person appointed in
35	writing by a title insurer to issue and countersign commitments
36	or policies of title insurance in its behalf, including
37	insurance under the Uniform Commercial Code.
38	(2)  "Title insurance agency" means an insurance agency
39	under which title insurance agents and other employees determine
40	insurability in accordance with underwriting rules and standards
41	prescribed by the title insurer represented by the agency, and
42	issue and countersign commitments, endorsements, or policies of
43	title insurance, including insurance under the Uniform
44	Commercial Code, on behalf of the appointing title insurer. The
45	term does not include a title insurer.
46	Section 3.  Paragraphs (a) and (b) of subsection (1) of
47	section 627.7711, Florida Statutes, are amended to read:
48	627.7711  Definitions.--As used in this part, the term:
49	(1)(a)  "Related title services" means services performed
50	by a title insurer or title insurance agent or agency, in the
51	agent's or agency's capacity as such, including, but not limited
52	to, preparing or obtaining a title search, examining title,
53	examining searches of the records of a filing office under the
54	Uniform Commercial Code and such other information as may be
55	necessary, preparing documents necessary to close the
56	transaction, conducting the closing, or handling the disbursing
57	of funds related to the closing in a real estate closing
58	transaction in which a title insurance commitment or policy is
59	to be issued. The premium, together with the charge for related
60	title services, constitutes the regular title insurance premium.
61	(b)  "Primary title services" means determining
62	insurability in accordance with sound underwriting practices
63	based upon evaluation of a reasonable search and examination of
64	the title or the records of a filing office under the Uniform
65	Commercial Code and such other information as may be necessary,
66	determination and clearance of underwriting objections and
67	requirements to eliminate risk, preparation and issuance of a
68	title insurance commitment setting forth the requirements to
69	insure, and preparation and issuance of the policy.
70	Section 4.  Subsections (1) and (2) of section 627.7845,
71	Florida Statutes, are amended to read:
72	627.7845  Determination of insurability required;
73	preservation of evidence of title search and examination.--
74	(1)  A title insurer may not issue a title insurance
75	commitment, endorsement, or title insurance policy until the
76	title insurer has caused to be conducted a reasonable search and
77	examination of the title or the records of a filing office under
78	the Uniform Commercial Code, as applicable, has examined and of
79	such other information as may be necessary, and has caused to be
80	made a determination of insurability of title or existence,
81	attachment, perfection, and priority of a security interest
82	under the Uniform Commercial Code, including endorsement
83	coverages, in accordance with sound underwriting practices.
84	(2)  The title insurer shall cause the evidence of the
85	reasonable search and examination of the title or the records of
86	a filing office under the Uniform Commercial Code to be
87	preserved and retained in its files or in the files of its title
88	insurance agent or agency for a period of not less than 7 years
89	after the title insurance commitment, title insurance policy, or
90	guarantee of title was issued. The title insurer or agent or
91	agency must produce the evidence required to be maintained by
92	this subsection at its offices upon the demand of the office.
93	Instead of retaining the original evidence, the title insurer or
94	the title insurance agent or agency may, in the regular course
95	of business, establish a system under which all or part of the
96	evidence is recorded, copied, or reproduced by any photographic,
97	photostatic, microfilm, microcard, miniature photographic, or
98	other process which accurately reproduces or forms a durable
99	medium for reproducing the original.
100	Section 5.  Upon the effective date of this act, any policy
101	form for insurance which qualifies as title insurance under s.
102	624.608(2), Florida Statutes, and for which a substantially
103	similar policy form has been previously approved by the Office
104	of Insurance Regulation as property and casualty insurance, may
105	continue to be sold by that property and casualty insurer until
106	the office approves the title insurance form provided for in s.
107	624.608(2), Florida Statutes, and the Financial Services
108	Commission approves a corresponding rule for rates for the form,
109	after which time the property and casualty insurance form may no
110	longer be sold.
111	Section 6.  This act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.