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5 This act modifies the Insurance Code to modify the assessment on title insurers h and title
5a insurance agencies h and to make
6 technical changes. This act has a July 1, 2002 effective date.
7 This act affects sections of Utah Code Annotated 1953 as follows:
9 31A-23-315, as enacted by Chapter 130, Laws of Utah 1998
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 31A-23-315 is amended to read:
12 31A-23-315. Assessment on title insurers.
13 (1) For purposes of this section:
14 (a) "Premium" is as defined in Subsection 59-9-101 (3).
15 (b) "Title insurer" means a person:
16 (i) making any contract or policy of title insurance as:
17 (A) insurer[
18 (B) guarantor[
19 (C) surety[
20 (ii) proposing to make [
22 (A) insurer;
23 (B) guarantor; or
24 (C) surety; or
26 (A) soliciting;
27 (B) negotiating preliminary to execution;
28 (C) executing of a contract of title insurance;
29 (D) insuring; and
30 (E) transacting matters subsequent to the execution of the contract and arising out of the
32 (c) "Utah risks" means insuring, guaranteeing, or indemnifying with regard to real or
33 personal property located in Utah, an owner of real or personal property, the holders of liens or
34 encumbrances on that property, or others interested in the property against loss or damage suffered
35 by reason of:
36 (i) liens or encumbrances upon, defects in, or the unmarketability of the title to the
37 property; or
38 (ii) invalidity or unenforceability of any liens or encumbrances on the property.
39 (2) (a) Beginning on July 1, 1998, the insurance commissioner may assess each title
40 insurer and each title insurance agency an annual assessment determined in accordance with this
41 Subsection (2) to be used for the purposes described in Subsection (3).
42 (b) A title insurance agency shall be assessed [
43 (i) $200 for the first office in each county in which the title insurance agency maintains
44 an office[
45 (ii) $100 for each additional office the title insurance agency maintains in the county
46 described in Subsection (2)(b)(i).
47 (c) A title insurer shall be assessed h UP TO h :
48 (i) [
49 office; [
50 (ii) $100 for each additional office the title insurer maintains in the county described in
51 Subsection (2)(c)(i); and
53 (A) aggregating the assessments imposed on:
54 (I) title insurance agencies under Subsection (2)(b); and [
55 (II) title insurers under [
56 (B) subtracting the amount determined under Subsection (2)(c)[
57 costs and expenses determined under Subsection (2)(d); and
58 (C) multiplying:
59 (I) the amount calculated under Subsection (2)(c)[
60 (II) the percentage of total premiums for title insurance on Utah risk that are premiums of
61 the title insurer.
62 (d) Notwithstanding Section 31A-3-103 and in accordance with Title 63, Chapter 46a,
63 Utah Administrative Rulemaking Act, the department by rule shall establish the amount of costs
64 and expenses described under Subsection (3) that will be covered by the assessment, except the
65 costs or expenses to be covered by the assessment may not exceed [
66 (3) [
67 (a) shall be deposited in the General Fund as a dedicated credit of the department[
68 (b) [
69 incurred by the department in the administration, investigation, and enforcement of [
71 (i) the marketing of title insurance[
72 (ii) audits of agencies.
73 (4) The assessment imposed by this section shall be in addition to any premium assessment
74 imposed under Subsection 59-9-101 (3).
75 Section 2. Effective date.
76 This act takes effect on July 1, 2002.
Legislative Review Note
as of 1-23-02 4:53 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.