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H.B. 276 Enrolled






Sponsor: Thomas V. Hatch

                  This act modifies the Insurance Code to modify the assessment on title insurers and title
                  insurance agencies and to make technical changes. This act has a July 1, 2002 effective date.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                      31A-23-315, as enacted by Chapter 130, Laws of Utah 1998
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 31A-23-315 is amended to read:
                       31A-23-315. Assessment on title insurance agencies or title insurers.
                      (1) For purposes of this section:
                      (a) "Premium" is as defined in Subsection 59-9-101 (3).
                      (b) "Title insurer" means a person:
                      (i) making any contract or policy of title insurance as:
                      (A) insurer[,];
                      (B) guarantor[,]; or
                      (C) surety[, or];
                      (ii) proposing to make [as insurer, guarantor, or surety,] any contract or policy of title
                  insurance[;] as:
                      (A) insurer;
                      (B) guarantor; or
                      (C) surety; or
                      [(ii)] (iii) transacting or proposing to transact any phase of title insurance, including:
                      (A) soliciting;
                      (B) negotiating preliminary to execution;
                      (C) executing of a contract of title insurance;

                      (D) insuring; and
                      (E) transacting matters subsequent to the execution of the contract and arising out of the
                      (c) "Utah risks" means insuring, guaranteeing, or indemnifying with regard to real or
                  personal property located in Utah, an owner of real or personal property, the holders of liens or
                  encumbrances on that property, or others interested in the property against loss or damage suffered
                  by reason of:
                      (i) liens or encumbrances upon, defects in, or the unmarketability of the title to the property;
                      (ii) invalidity or unenforceability of any liens or encumbrances on the property.
                      (2) (a) Beginning on July 1, 1998, the insurance commissioner may assess each title insurer
                  and each title insurance agency an annual assessment determined in accordance with this Subsection
                  (2) to be used for the purposes described in Subsection (3).
                      (b) A title insurance agency shall be assessed [$150] up to:
                      (i) $200 for the first office in each county in which the title insurance agency maintains an
                  office[.]; and
                      (ii) $100 for each additional office the title insurance agency maintains in the county
                  described in Subsection (2)(b)(i).
                      (c) A title insurer shall be assessed up to:
                      (i) [$150] $200 for the first office in each county in which the title insurer maintains an
                  office; [and]
                      (ii) $100 for each additional office the title insurer maintains in the county described in
                  Subsection (2)(c)(i); and
                      [(ii)] (iii) an amount calculated by:
                      (A) aggregating the assessments imposed on:
                      (I) title insurance agencies under Subsection (2)(b); and [on]
                      (II) title insurers under [Subsection] Subsections (2)(c)(i) and (2)(c)(ii);
                      (B) subtracting the amount determined under Subsection (2)(c)[(i)](iii)(A) from the total

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                  costs and expenses determined under Subsection (2)(d); and
                      (C) multiplying:
                      (I) the amount calculated under Subsection (2)(c)[(ii)](iii)(B); and
                      (II) the percentage of total premiums for title insurance on Utah risk that are premiums of
                  the title insurer.
                      (d) Notwithstanding Section 31A-3-103 and in accordance with Title 63, Chapter 46a, Utah
                  Administrative Rulemaking Act, the department by rule shall establish the amount of costs and
                  expenses described under Subsection (3) that will be covered by the assessment, except the costs or
                  expenses to be covered by the assessment may not exceed [$50,000] $75,000 annually.
                      (3) [(a)] All money received by the state under this section:
                      (a) shall be deposited in the General Fund as a dedicated credit of the department[.]; and
                      (b) [The money] may be expended by the department only to pay for any cost or expense
                  incurred by the department in the administration, investigation, and enforcement of [the provisions
                  of Title 31A,] Chapter 23, Parts III and IV, related to:
                      (i) the marketing of title insurance[.]; and
                      (ii) audits of agencies.
                      (4) The assessment imposed by this section shall be in addition to any premium assessment
                  imposed under Subsection 59-9-101 (3).
                      Section 2. Effective date.
                      This act takes effect on July 1, 2002.

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