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H.B. 276





Sponsor: Thomas V. Hatch

             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:
             8      AMENDS:
             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[,]; or
             19          (C) surety[, or];
             20          (ii) proposing to make [as insurer, guarantor, or surety,] any contract or policy of title
             21      insurance[;] as:
             22          (A) insurer;
             23          (B) guarantor; or
             24          (C) surety; or
             25          [(ii)] (iii) transacting or proposing to transact any phase of title insurance, including:
             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
             31      contract.
             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 [$150] S UP TO s :
             43          (i) $200 for the first office in each county in which the title insurance agency maintains
             44      an office[.]; and
             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) [$150] $200 for the first office in each county in which the title insurer maintains an
             49      office; [and]
             50          (ii) $100 for each additional office the title insurer maintains in the county described in
             51      Subsection (2)(c)(i); and
             52          [(ii)] (iii) an amount calculated by:
             53          (A) aggregating the assessments imposed on:
             54          (I) title insurance agencies under Subsection (2)(b); and [on]
             55          (II) title insurers under [Subsection] Subsections (2)(c)(i) and (2)(c)(ii);
             56          (B) subtracting the amount determined under Subsection (2)(c)[(i)](iii)(A) from the total
             57      costs and expenses determined under Subsection (2)(d); and
             58          (C) multiplying:

             59          (I) the amount calculated under Subsection (2)(c)[(ii)](iii)(B); and
             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 [$50,000] $75,000 annually.
             66          (3) [(a)] All money received by the state under this section:
             67          (a) shall be deposited in the General Fund as a dedicated credit of the department[.]; and
             68          (b) [The money] may be expended by the department only to pay for any cost or expense
             69      incurred by the department in the administration, investigation, and enforcement of [the provisions
             70      of] Title 31A, Chapter 23, Parts III and IV, related to:
             71          (i) the marketing of title insurance[.]; and
             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.

Office of Legislative Research and General Counsel

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