S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9388

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 6, 2010
                               ___________

Introduced  by  M.  of  A.  KAVANAGH,  CARROZZA, LATIMER, FIELDS, CLARK,
  SPANO, WEISENBERG, BENJAMIN -- Multi-Sponsored by -- M. of A. BENEDET-
  TO, BING, BOYLAND, BRENNAN,  BROOK-KRASNY,  DelMONTE,  GALEF,  MAISEL,
  MARKEY,  MAYERSOHN, NOLAN, PRETLOW, TOWNS -- read once and referred to
  the Committee on Insurance

AN ACT to amend the insurance law, in relation to licensing of agents of
  title insurance corporations

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The insurance law is amended by adding a new article 21-A
to read as follows:
                               ARTICLE 21-A
                         TITLE INSURANCE AGENTS
SECTION 2151. DEFINITIONS.
        2152. ACTING WITHOUT A LICENSE.
        2153. TITLE INSURANCE AGENTS; LICENSING.
        2154. TEMPORARY LICENSE IN CASE OF DEATH, SERVICE IN ARMED FORC-
                ES OR DISABILITY.
        2155. REVOCATION OR SUSPENSION OF  LICENSE  OF  TITLE  INSURANCE
                AGENT OR CERTIFICATE OF APPOINTMENT OF A SUB-LICENSEE OR
                AN ATTORNEY ACTING AS A TITLE INSURANCE AGENT.
        2156. PENALTIES FOR VIOLATIONS.
        2157. REVOKED LICENSEES.
        2158. CERTIFICATE  OF APPOINTMENT AND NOTICE OF TERMINATION OF A
                TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY.
        2159. COMMISSIONS;  PREMIUM  SPLITTING  AND   OTHER   PROHIBITED
                PAYMENTS OR RECEIPTS OF PAYMENTS.
        2160. ACTING  FOR  OR  AIDING  UNLICENSED  OR UNAUTHORIZED TITLE
                INSURANCE CORPORATIONS.
        2161. CONTROLLED BUSINESS.
        2162. FIDUCIARY CAPACITY OF LICENSEES.
        2163. ADVERTISING BY LICENSEES.
        2164. STAY OR SUSPENSION OF SUPERINTENDENT'S DETERMINATION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD09216-05-9

A. 9388                             2

        2165. IMPERSONATION AT EXAMINATIONS PROHIBITED.
        2166. CONTINUING EDUCATION.
        2167. CHANGE OF ADDRESS.
        2168. ADMINISTRATION OF CERTAIN FUNCTIONS.

  S 2151. DEFINITIONS. IN THIS ARTICLE:
  (A)  "BUSINESS  ENTITY" MEANS A CORPORATION, ASSOCIATION, PARTNERSHIP,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP OR OTHER  LEGAL
ENTITY.
  (B)  "CONTROLLED  BUSINESS"  MEANS  ANY  PORTION  OF A TITLE INSURANCE
AGENT'S BUSINESS THAT IS REFERRED TO IT BY AN ORIGINATOR OF TITLE INSUR-
ANCE BUSINESS, WHERE THE ORIGINATOR HAS  A  FINANCIAL  INTEREST  IN  THE
TITLE INSURANCE AGENT.
  (C)  "CORE  TITLE SERVICES" IN CONNECTION WITH THE ACTIVITIES GOVERNED
BY THIS ARTICLE MEANS:
  (1) THE EVALUATION OF THE TITLE SEARCH TO  DETERMINE  INSURABILITY  OF
THE TITLE;
  (2) THE PREPARATION AND ISSUANCE OF A TITLE INSURANCE COMMITMENT;
  (3)  THE  CLEARANCE  OF UNDERWRITING EXCEPTIONS IN CONNECTION WITH THE
ISSUANCE OF A TITLE INSURANCE POLICY;
  (4) THE MARKING UP OF A TITLE INSURANCE COMMITMENT  TO  BIND  A  TITLE
INSURANCE CORPORATION; AND
  (5) THE PREPARATION AND ISSUANCE OF A TITLE INSURANCE POLICY ON BEHALF
OF A TITLE INSURANCE CORPORATION.
  (D) "FINANCIAL INTEREST" MEANS A DIRECT OR INDIRECT INTEREST, LEGAL OR
BENEFICIAL,  WHEREIN THE HOLDER IS OR WILL BE ENTITLED TO ANY PORTION OF
THE PROFITS OR NET WORTH OF THE PERSON IN WHICH THE INTEREST IS HELD.
  (E) "LICENSEE" MEANS A TITLE INSURANCE AGENT TO  WHOM  A  LICENSE  HAS
BEEN  ISSUED PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED FIFTY-THREE OF
THIS ARTICLE.
  (F) "NEGOTIATE" OR "NEGOTIATION" MEANS THE ACT OF CONFERRING  DIRECTLY
WITH OR OFFERING ADVICE DIRECTLY TO A PURCHASER OR PROSPECTIVE PURCHASER
OF A PARTICULAR TITLE INSURANCE POLICY CONCERNING ANY OF THE SUBSTANTIVE
BENEFITS,  TERMS  OR  CONDITIONS OF THE POLICY, PROVIDED THAT THE PERSON
ENGAGED IN THAT ACT SELLS TITLE INSURANCE.
  (G) "ORIGINATOR" MEANS A PERSON, OR EMPLOYEE OF SUCH PERSON, HAVING  A
FINANCIAL  INTEREST IN ANY BUSINESS ENTITY ENGAGED IN THE BUSINESS OF OR
WHO IS INDIVIDUALLY ENGAGED IN THE BUSINESS OF:
  (1) BUYING OR SELLING ANY INTEREST IN REAL PROPERTY;
  (2) MAKING LOANS SECURED BY ANY INTEREST IN REAL PROPERTY; OR
  (3) ACTING AS A REAL ESTATE BROKER OR AGENT, MORTGAGE LENDER, MORTGAGE
BANKER, MORTGAGE BROKER, OR AN AGENT, REPRESENTATIVE OR  ATTORNEY  OF  A
PERSON  WHICH  LEASES,  BUYS OR SELLS ANY INTEREST IN, OR WHICH LENDS OR
BORROWS MONEY SECURED BY AN INTEREST IN REAL PROPERTY.
  (H) "PERSON" MEANS AN INDIVIDUAL OR A BUSINESS ENTITY.
  (I) "REAL PROPERTY" MEANS ANY INTEREST IN REAL OR PERSONAL PROPERTY OR
ANY INTEREST IN A UNIT UNDER A PLAN OF COOPERATIVE OWNERSHIP FOR WHICH A
TITLE INSURANCE POLICY MAY BE ISSUED IN THIS STATE.
  (J) "REFERRAL" MEANS THE DIRECTING OR INFLUENCING, OR  THE  EXERCISING
OF  ANY  POWER  TO  DIRECT OR INFLUENCE THE PLACEMENT OF TITLE INSURANCE
BUSINESS.
  (K) "SELL" OR "SALE" MEANS TO EXCHANGE A TITLE INSURANCE POLICY BY ANY
MEANS, FOR MONEY OR ITS EQUIVALENT, ON BEHALF OF A LICENSED TITLE INSUR-
ANCE CORPORATION.

A. 9388                             3

  (L) "SOLICIT" OR "SOLICITATION" MEANS ATTEMPTING TO SELL TITLE  INSUR-
ANCE  OR  ASKING  OR  URGING  A PERSON TO APPLY FOR A PARTICULAR KIND OF
TITLE INSURANCE FROM A PARTICULAR LICENSED TITLE INSURANCE CORPORATION.
  (M)  "SUB-LICENSEE" MEANS AN INDIVIDUAL, OTHER THAN AN ORIGINATOR, WHO
IS A MEMBER, MANAGER, PARTNER, DIRECTOR, OFFICER OR EMPLOYEE OF A  BUSI-
NESS ENTITY LICENSED AS A TITLE INSURANCE AGENT DESIGNATED BY SUCH TITLE
INSURANCE AGENT TO ACT ON ITS BEHALF AND TO FULFILL CONTINUING EDUCATION
REQUIREMENTS ON BEHALF OF THE TITLE INSURANCE AGENT.
  (N)  "TITLE INSURANCE AGENT" MEANS AN AUTHORIZED PERSON, OTHER THAN AN
EMPLOYEE OF A TITLE INSURANCE CORPORATION WHO, ON BEHALF  OF  THE  TITLE
INSURANCE  CORPORATION, PERFORMS THE FOLLOWING ACTS, IN CONJUNCTION WITH
THE ISSUANCE OF A TITLE INSURANCE COMMITMENT OR POLICY:
  (1) DETERMINES INSURABILITY AND ISSUES TITLE INSURANCE COMMITMENTS  OR
POLICIES,  OR  BOTH,  BASED  UPON  THE  PERFORMANCE OR REVIEW OF A TITLE
SEARCH; AND
  (2) PERFORMS ONE OR MORE OF THE FOLLOWING FUNCTIONS:
  (A) REMITS OR DISBURSES PREMIUMS OR OTHER FUNDS; OR
  (B) SOLICITS OR NEGOTIATES THE ISSUANCE OF A TITLE INSURANCE POLICY.
  (O) "TITLE INSURANCE COMMITMENT" MEANS A REPORT,  BINDER,  CERTIFICATE
OR  OTHER  DOCUMENT  ISSUED  PRIOR  TO THE ISSUANCE OF A TITLE INSURANCE
POLICY WHICH CONTAINS THE TERMS, CONDITIONS AND EXCEPTIONS  PURSUANT  TO
WHICH A TITLE INSURANCE POLICY IS TO BE ISSUED.
  (P)  "TITLE  INSURANCE  CORPORATION"  MEANS A CORPORATION ORGANIZED IN
COMPLIANCE WITH ARTICLE SIXTY-FOUR OF THIS CHAPTER, EXCEPT THAT FOR  THE
PURPOSES OF SECTION TWO THOUSAND ONE HUNDRED SIXTY OF THIS ARTICLE, SUCH
TERM  MEANS A CORPORATION DESCRIBED IN SECTION SIX THOUSAND FOUR HUNDRED
ONE OF THIS CHAPTER WHICH HAS NOT BEEN LICENSED PURSUANT TO THIS CHAPTER
TO DO THE KIND OF INSURANCE BUSINESS, WITH THE INCIDENTAL POWERS  SPECI-
FIED IN SECTION SIX THOUSAND FOUR HUNDRED THREE OF THIS CHAPTER.
  (Q)  "TITLE INSURANCE POLICY" OR "TITLE INSURANCE" MEANS ANY POLICY OR
CONTRACT INSURING OR GUARANTEEING THE OWNERS OF REAL PROPERTY AND  CHAT-
TELS REAL AND OTHER PERSONS INTERESTED THEREIN, OR HAVING LIENS THEREON,
AGAINST LOSS BY REASON OF ENCUMBRANCES THEREON AND DEFECTIVE TITLES, AND
ANY SUBSTANTIALLY SIMILAR KIND OF INSURANCE.
  (R)  "TITLE SEARCH" MEANS A WRITTEN SYNOPSIS OR SUMMARY OF INSTRUMENTS
AFFECTING TITLES TO REAL PROPERTY, CHATTELS REAL, AND COOPERATIVE  UNITS
AND PROPRIETARY LEASES, AND OF LIENS OR CHARGES AFFECTING THE SAME.
  S  2152.  ACTING WITHOUT A LICENSE. (A) NO PERSON SHALL ACT AS A TITLE
INSURANCE AGENT IN THIS STATE WITHOUT  HAVING  AUTHORITY  TO  DO  SO  BY
VIRTUE  OF  A  LICENSE ISSUED AND IN FORCE PURSUANT TO THE PROVISIONS OF
THIS CHAPTER.
  (B) NO PERSON SHALL ACCEPT ANY FEE, COMPENSATION, COMMISSION OR  OTHER
VALUABLE  CONSIDERATION  FOR  ACTING  AS A TITLE INSURANCE AGENT IN THIS
STATE, OR WITH RESPECT TO THE ISSUANCE OF A TITLE INSURANCE  POLICY,  IF
THAT  PERSON IS REQUIRED TO BE LICENSED UNDER THIS ARTICLE AND IS NOT SO
LICENSED.
  (C) A TITLE INSURANCE CORPORATION OR A TITLE INSURANCE AGENT  MAY  PAY
OR  ASSIGN  FEES,  COMPENSATION, COMMISSIONS OR OTHER VALUABLE CONSIDER-
ATION TO A TITLE INSURANCE AGENT OR TO PERSONS WHO DO NOT ACT AS A TITLE
INSURANCE AGENT IN THIS STATE, UNLESS  THE  PAYMENT  WOULD  VIOLATE  ANY
PROVISION OF THIS CHAPTER.
  (D)  EVERY LICENSEE SHALL NOTIFY THE SUPERINTENDENT UPON CHANGING HIS,
HER OR ITS LEGAL NAME. EXCEPT FOR AN  INDIVIDUAL  LICENSEE'S  OWN  LEGAL
NAME, NO LICENSEE SHALL USE ANY NAME, IN CONDUCTING A BUSINESS REGULATED
BY  THIS  ARTICLE,  THAT  HAS NOT BEEN PREVIOUSLY APPROVED BY THE SUPER-
INTENDENT.

A. 9388                             4

  (E) SUBSECTIONS (A) AND (B) OF THIS SECTION SHALL NOT APPLY TO:
  (1)  A  TITLE  INSURANCE CORPORATION, OR TO ANY OFFICER OR EMPLOYEE OF
SUCH TITLE INSURANCE CORPORATION ACTING IN THEIR  CAPACITY  AS  SUCH  IN
DISCHARGING  THE  DUTIES  OF  THEIR  OFFICE OR EMPLOYMENT, OTHER THAN AN
ORIGINATOR, NOTWITHSTANDING THE MANNER IN WHICH THE OFFICER OR  EMPLOYEE
MAY BE COMPENSATED;
  (2)  AN  INDIVIDUAL,  OTHER  THAN  AN  ORIGINATOR, EMPLOYED BY A TITLE
INSURANCE AGENT, ACTING ON A FULL-TIME OR PART-TIME BASIS IN THE CAPACI-
TY OF AND WITHIN THE SCOPE OF HIS OR HER  DUTIES  AS  SUCH  AN  EMPLOYEE
UNDER THE SUPERVISION OF A LICENSEE, NOTWITHSTANDING THE MANNER IN WHICH
SUCH EMPLOYEE OR SUB-LICENSEE MAY BE COMPENSATED;
  (3)  AN  INDIVIDUAL,  OTHER THAN AN ORIGINATOR, ENGAGED TO REPRESENT A
TITLE INSURANCE CORPORATION OR TITLE INSURANCE AGENT AT THE  CLOSING  OF
TITLE,  AND ACTING IN SUCH CAPACITY, PROVIDED SUCH INDIVIDUAL IS PAID NO
MORE THAN THE REASONABLE AND CUSTOMARY COMPENSATION FOR SERVICES ACTUAL-
LY RENDERED AT SUCH CLOSING, BUT ONLY WITH RESPECT TO SUCH ENGAGEMENT;
  (4) A PERSON, OTHER THAN AN ORIGINATOR, ACTING IN THE CAPACITY  OF  AN
INDEPENDENT CONTRACTOR FOR A TITLE INSURANCE AGENT OR FOR A TITLE INSUR-
ANCE  CORPORATION,  WHO  RECEIVES COMPENSATION FROM SUCH AGENT OR CORPO-
RATION FOR SERVICES ACTUALLY RENDERED IN AN AMOUNT NOT IN EXCESS OF  THE
REASONABLE  AND CUSTOMARY COMPENSATION THEREOF, BUT ONLY WITH RESPECT TO
SUCH SERVICES;
  (F) SUBSECTIONS (A) AND (B) OF THIS SECTION  SHALL  NOT  APPLY  TO  AN
ATTORNEY  LICENSED  TO  PRACTICE  LAW  IN  THIS  STATE WHO HOLDS A VALID
CERTIFICATE OF APPOINTMENT ISSUED TO AND IN FORCE WITH RESPECT  TO  SUCH
ATTORNEY  PURSUANT  TO  SECTION  TWO THOUSAND ONE HUNDRED FIFTY-EIGHT OF
THIS ARTICLE BY THE TITLE INSURANCE CORPORATION FOR WHICH SUCH  ATTORNEY
IS ACTING AS A TITLE INSURANCE AGENT IN THIS STATE.
  S  2153. TITLE INSURANCE AGENTS; LICENSING. (A) THE SUPERINTENDENT MAY
ISSUE A LICENSE TO ANY  PERSON  WHO  OR  WHICH  HAS  COMPLIED  WITH  THE
REQUIREMENTS  OF  THIS  CHAPTER,  AUTHORIZING  SUCH LICENSEE TO ACT AS A
TITLE INSURANCE AGENT, ON BEHALF OF ONE OF MORE LICENSED TITLE INSURANCE
CORPORATIONS.
  (B)(1) A LICENSE ISSUED TO A BUSINESS ENTITY SHALL DESIGNATE AT LEAST:
  (A) ONE SUB-LICENSEE TO ACT AS A TITLE INSURANCE AGENT THEREUNDER  AND
TO  FULFILL THE CONTINUING EDUCATION REQUIREMENT UNDER SECTION TWO THOU-
SAND ONE HUNDRED SIXTY-SIX OF THIS ARTICLE WHO HAS FILED WITH THE SUPER-
INTENDENT A CERTIFICATE OF APPOINTMENT PURSUANT TO SECTION TWO  THOUSAND
ONE HUNDRED FIFTY-EIGHT OF THIS ARTICLE; OR
  (B)  ONE  ATTORNEY  LICENSED TO PRACTICE LAW IN THIS STATE TO ACT AS A
TITLE INSURANCE AGENT THEREUNDER WHO HAS FILED WITH THE SUPERINTENDENT A
CERTIFICATE OF APPOINTMENT PURSUANT TO SECTION TWO THOUSAND ONE  HUNDRED
FIFTY-EIGHT OF THIS ARTICLE.
  (2)  AT LEAST ONE SUCH DESIGNATED SUB-LICENSEE OR ATTORNEY MUST HAVE A
FINANCIAL INTEREST IN THE LICENSEE. A LICENSE ISSUED TO A BUSINESS ENTI-
TY SHALL AUTHORIZE ONLY THE DESIGNATED SUB-LICENSEE OR SUB-LICENSEES  OR
THE  DESIGNATED  ATTORNEY  OR  ATTORNEYS  TO  ACT ON BEHALF OF THE TITLE
INSURANCE AGENT, AND EVERY  SUCH  DESIGNATED  SUB-LICENSEE  OR  ATTORNEY
SHALL BE AUTHORIZED TO ACT ONLY IN THE NAME OF THE LICENSEE.
  (C)  EVERY  INDIVIDUAL  APPLICANT FOR A LICENSE UNDER THIS SECTION AND
EVERY DESIGNATED SUB-LICENSEE AND ATTORNEY SHALL BE  EIGHTEEN  YEARS  OF
AGE OR OVER AT THE TIME OF THE ISSUANCE OF SUCH LICENSE.
  (D)  BEFORE  ANY  ORIGINAL  TITLE  INSURANCE AGENT'S LICENSE IS ISSUED
THERE SHALL BE ON FILE IN THE OFFICE OF THE SUPERINTENDENT:
  (1) AN APPLICATION BY THE PROSPECTIVE LICENSEE IN SUCH FORM  OR  FORMS
AND   SUPPLEMENTS,   AND   CONTAINING   INFORMATION  THE  SUPERINTENDENT

A. 9388                             5

PRESCRIBES AND FOR EACH BUSINESS ENTITY,  THE  SUB-LICENSEE,  SUB-LICEN-
SEES, ATTORNEY OR ATTORNEYS NAMED IN THE APPLICATION SHALL BE DESIGNATED
RESPONSIBLE  FOR  THE  BUSINESS  ENTITY'S  COMPLIANCE WITH THE INSURANCE
LAWS, RULES AND REGULATIONS OF THIS STATE. THE APPLICATION SHALL INCLUDE
THE  NAMES  AND  ADDRESSES  OF EACH DESIGNATED SUB-LICENSEE OR ATTORNEY,
EACH PERSON THAT HAS A FINANCIAL INTEREST IN  THE  APPLICANT,  AND  EACH
SUCH  PERSON  THAT IS OR WILL BE AN ORIGINATOR, AND WITH RESPECT TO EACH
SUB-LICENSEE, ATTORNEY AND ORIGINATOR, HIS, HER OR ITS FINANCIAL  INTER-
EST  IN THE APPLICANT AND IN EVERY OTHER TITLE INSURANCE AGENT OR INSUR-
ANCE AGENT WHOSE LICENSE HAD AT ANY TIME BEEN SUSPENDED OR REVOKED,  AND
ANY OTHER INFORMATION THE SUPERINTENDENT PRESCRIBES.
  (2)  A  CERTIFICATE  OF APPOINTMENT ISSUED BY A TITLE INSURANCE CORPO-
RATION PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED FIFTY-EIGHT OF  THIS
ARTICLE,  STATING THAT IT HAS MADE SUCH INVESTIGATION OF THE PROSPECTIVE
LICENSEE AND ITS SUB-LICENSEES AND ATTORNEYS AS IT DEEMS APPROPRIATE AND
THAT SUCH TITLE INSURANCE CORPORATION APPOINTS SUCH PROSPECTIVE LICENSEE
TO ACT AS ITS  AGENT IF A LICENSE AS A TITLE INSURANCE AGENT  IS  ISSUED
BY THE SUPERINTENDENT TO THE PROSPECTIVE LICENSEE.
  (E)(1)  THE SUPERINTENDENT SHALL, IN ORDER TO DETERMINE THE COMPETENCY
OF EVERY INDIVIDUAL APPLICANT AND OF EVERY PROPOSED SUB-LICENSEE  OF  AN
APPLICANT  BUSINESS ENTITY TO HAVE THE LICENSE APPLIED FOR, REQUIRE SUCH
INDIVIDUAL TO SUBMIT TO A PERSONAL WRITTEN EXAMINATION AND TO  PASS  THE
SAME  TO  THE SATISFACTION OF THE SUPERINTENDENT. SUCH EXAMINATION SHALL
BE HELD AT SUCH TIMES AND PLACES AS THE SUPERINTENDENT SHALL  FROM  TIME
TO  TIME  DETERMINE. EVERY INDIVIDUAL APPLYING TO TAKE ANY WRITTEN EXAM-
INATION SHALL, AT THE TIME OF APPLYING THEREFOR, PAY TO THE  SUPERINTEN-
DENT,  OR,  AT  THE  DISCRETION  OF  THE SUPERINTENDENT, DIRECTLY TO ANY
ORGANIZATION THAT IS UNDER CONTRACT TO PROVIDE EXAMINATION SERVICES,  AN
EXAMINATION  FEE OF AN AMOUNT WHICH IS THE ACTUAL DOCUMENTED ADMINISTRA-
TIVE COST OF CONDUCTING SAID QUALIFYING EXAMINATION AS CERTIFIED BY  THE
SUPERINTENDENT  FROM  TIME  TO  TIME.  AN  EXAMINATION FEE REPRESENTS AN
ADMINISTRATIVE EXPENSE AND IS NOT  REFUNDABLE.  THE  SUPERINTENDENT  MAY
ACCEPT,  IN  LIEU  OF  ANY  SUCH EXAMINATION, THE RESULT OF ANY PREVIOUS
WRITTEN EXAMINATION, GIVEN BY THE SUPERINTENDENT, WHICH IN  HIS  OR  HER
JUDGMENT IS EQUIVALENT TO THE EXAMINATION FOR WHICH IT IS SUBSTITUTED.
  (2)  NO  INDIVIDUAL  SHALL BE DEEMED QUALIFIED TO TAKE THE EXAMINATION
UNLESS HE OR SHE SHALL HAVE SUCCESSFULLY COMPLETED A COURSE OR  COURSES,
APPROVED  AS  TO  METHOD  AND CONTENT BY THE SUPERINTENDENT, COVERING AT
LEAST THE CORE TITLE SERVICES  AND  THE  TITLE  INSURANCE  POLICIES  AND
REQUIRING NOT LESS THAN FORTY-FIVE HOURS OF CLASSROOM WORK OR THE EQUIV-
ALENT  IN  CORRESPONDENCE  WORK  OR  SIMILAR INSTRUCTION. SUCH COURSE OR
COURSES EITHER SHALL HAVE BEEN GIVEN BY A DEGREE CONFERRING  COLLEGE  OR
UNIVERSITY  WHICH  HAS,  WHEN SUCH COURSE IS TAKEN BY SUCH INDIVIDUAL, A
CURRICULUM OR CURRICULA REGISTERED WITH THE STATE EDUCATION  DEPARTMENT,
WHETHER  SUCH COURSE BE GIVEN AS PART OF ANY SUCH CURRICULA OR SEPARATE-
LY, OR BY ANY OTHER INSTITUTION, AGENTS' ASSOCIATION, TRADE ASSOCIATION,
BAR ASSOCIATION OR TITLE INSURANCE CORPORATION, WHICH  MAINTAINS  EQUIV-
ALENT  STANDARDS  OF  INSTRUCTION AND WHICH SHALL HAVE BEEN APPROVED FOR
SUCH PURPOSE BY THE SUPERINTENDENT.
  (F) NO SUCH WRITTEN EXAMINATION SHALL BE REQUIRED:
  (1) IN THE DISCRETION OF THE SUPERINTENDENT, OF ANY  INDIVIDUAL  WHOSE
LICENSE HAS BEEN REVOKED OR SUSPENDED;
  (2)  IN  CONNECTION  WITH  ANY CERTIFICATE OF APPOINTMENT FOR AN ADDI-
TIONAL TITLE INSURANCE CORPORATION;
  (3) OF ANY APPLICANT WHO HAS PASSED THE WRITTEN EXAMINATION  GIVEN  BY
THE  SUPERINTENDENT  FOR  A  TITLE  INSURANCE  AGENT'S  LICENSE  AND WAS

A. 9388                             6

LICENSED AS SUCH, OR OF AN APPLICANT WHO WAS LICENSED AS A TITLE  INSUR-
ANCE  AGENT BUT DID NOT PASS SUCH AN EXAMINATION, PROVIDED THE APPLICANT
APPLIES WITHIN TWO YEARS FOLLOWING THE DATE OF TERMINATION OF HIS OR HER
LICENSE; OR
  (4) OF AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS STATE.
  (G)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO COURSE OF
STUDY OR WRITTEN EXAMINATION SHALL  BE  REQUIRED  WITH  RESPECT  TO  ANY
APPLICANT  WHO  FILES  AN APPLICATION UNDER THIS SECTION WITHIN ONE YEAR
AFTER THE EFFECTIVE DATE OF THIS ARTICLE AND  WHO  DEMONSTRATES  TO  THE
SATISFACTION OF THE SUPERINTENDENT THAT SUCH PROSPECTIVE LICENSEE OR ITS
PROSPECTIVE  SUB-LICENSEE  HAS  REGULARLY AND CONTINUOUSLY PERFORMED THE
FUNCTIONS OF A TITLE INSURANCE AGENT FOR A PERIOD OF AT LEAST FIVE YEARS
IMMEDIATELY PRECEDING THE FILING OF SUCH APPLICATION.
  (H) THE SUPERINTENDENT MAY REFUSE TO ISSUE ANY TITLE INSURANCE AGENT'S
LICENSE IF, IN HIS OR HER JUDGMENT, THE PROPOSED LICENSEE OR ANY SUB-LI-
CENSEE OR ATTORNEY IS NOT TRUSTWORTHY  AND  COMPETENT  TO  ACT  AS  SUCH
AGENT,  OR  HAS  GIVEN  CAUSE FOR THE REVOCATION OR SUSPENSION OF SUCH A
LICENSE, OR HAS FAILED TO COMPLY WITH ANY PREREQUISITE FOR THE  ISSUANCE
OF SUCH LICENSE.
  (I)(1)  THE  SUPERINTENDENT  MAY REQUIRE FROM EVERY APPLICANT AND FROM
EVERY PROPOSED SUB-LICENSEE, BEFORE OR AFTER ISSUING ANY SUCH LICENSE, A
STATEMENT SUBSCRIBED AND AFFIRMED AS TRUE UNDER THE PENALTIES OF PERJURY
AS TO THE OWNERSHIP OF ANY INTEREST IN AN APPLICANT BUSINESS ENTITY  AND
AS  TO  FACTS  INDICATING WHETHER ANY APPLICANT HAS BEEN BY REASON OF AN
EXISTING LICENSE, IF ANY, OR WILL, BY REASON OF THE LICENSE APPLIED FOR,
BE RECEIVING ANY BENEFIT OR ADVANTAGE IN VIOLATION OF SECTION TWO  THOU-
SAND  THREE  HUNDRED  TWENTY-FOUR  OF  THIS CHAPTER, AND ALSO AS TO SUCH
FACTS AS THE SUPERINTENDENT MAY DEEM PERTINENT TO  THE  REQUIREMENTS  OF
THIS  SUBSECTION.  THE  SUPERINTENDENT  MAY  REFUSE TO ISSUE, SUSPEND OR
REVOKE A LICENSE, AS THE CASE MAY BE, TO OR OF  ANY  APPLICANT  AND  ANY
LICENSEE IF THE SUPERINTENDENT FINDS THAT SUCH APPLICANT OR LICENSEE HAS
BEEN  OR  WILL  BE,  AS AFORESAID, RECEIVING ANY BENEFIT OR ADVANTAGE IN
VIOLATION OF SECTION TWO THOUSAND  THREE  HUNDRED  TWENTY-FOUR  OF  THIS
CHAPTER,  OR  IF  THE  SUPERINTENDENT  FINDS THAT AN ORIGINATOR HAVING A
FINANCIAL INTEREST IN THE APPLICANT OR LICENSEE WILL BE OR HAS BEEN  THE
SOLE  SOURCE OF BUSINESS OF THE APPLICANT OR LICENSEE OR THAT THE APPLI-
CANT OR LICENSEE DOES NOT OR WILL  NOT  HAVE  SIGNIFICANT  AND  MULTIPLE
SOURCES OF BUSINESS;
  (2)  NOTHING  HEREIN DISQUALIFIES ANY APPLICANT BY REASON OF ACTS DONE
OR FACTS EXISTING AT A TIME WHEN THE SAME DID NOT, UNDER THE LAW THEN IN
FORCE, CONSTITUTE OR CONTRIBUTE TO CONSTITUTING SUCH A DISQUALIFICATION.
  (J)(1) EVERY LICENSE ISSUED TO A  BUSINESS  ENTITY  PURSUANT  TO  THIS
SECTION  SHALL  EXPIRE  ON  JUNE THIRTIETH OF EVEN NUMBERED YEARS. EVERY
LICENSE ISSUED PURSUANT TO THIS SECTION TO AN INDIVIDUAL, WHO  WAS  BORN
IN  AN  ODD  NUMBERED YEAR, SHALL EXPIRE ON THE INDIVIDUAL'S BIRTHDAY IN
EACH ODD-NUMBERED YEAR. EVERY LICENSE ISSUED PURSUANT TO THIS SECTION TO
AN INDIVIDUAL, WHO WAS BORN IN AN EVEN NUMBERED YEAR,  SHALL  EXPIRE  ON
THE INDIVIDUAL'S BIRTHDAY IN EACH EVEN NUMBERED YEAR. EVERY SUCH LICENSE
MAY  BE  RENEWED  FOR  THE ENSUING PERIOD OF TWENTY-FOUR MONTHS UPON THE
FILING OF AN APPLICATION IN CONFORMITY WITH THIS SUBSECTION.
  (2) SUCH LICENSES MAY BE ISSUED FOR ALL OF SUCH TWO  YEAR  TERMS,  OR,
UPON APPLICATION MADE DURING ANY SUCH TERM, FOR THE BALANCE THEREOF.
  (3)  ANY  LICENSE  SHALL  BE  CONSIDERED  IN  GOOD STANDING WITHIN THE
LICENSE TERM UNLESS:
  (A) REVOKED OR SUSPENDED BY THE SUPERINTENDENT PURSUANT TO THIS  ARTI-
CLE.

A. 9388                             7

  (B)  ALL CERTIFICATES OF APPOINTMENT HAVE BEEN TERMINATED BY THE TITLE
INSURANCE CORPORATIONS, AT WHICH TIME THE LICENSE BECOMES INACTIVE.
  (C)  IF  AT  THE  EXPIRATION  DATE  OF  THE LICENSE TERM, PROVIDED THE
LICENSE WAS IN GOOD STANDING DURING THE TERM, THE LICENSEE FAILS TO FILE
A RENEWAL APPLICATION.
  (4) BEFORE THE RENEWAL OF ANY TITLE INSURANCE AGENT'S LICENSE SHALL BE
ISSUED, THE FOLLOWING REQUIREMENTS SHALL HAVE BEEN MET:
  (A) THE LICENSEE SHALL HAVE FILED A COMPLETED RENEWAL  APPLICATION  IN
SUCH  FORM OR FORMS AND SUPPLEMENTS THERETO AND CONTAINING SUCH INFORMA-
TION AS THE SUPERINTENDENT MAY PRESCRIBE.
  (B) THE LICENSEE SHALL HAVE PAID SUCH FEES AS ARE PRESCRIBED  IN  THIS
SECTION.
  (5)  IF  THE  AGENT'S LICENSE IS DEEMED TO BE IN AN INACTIVE STATUS AT
THE TIME OF RENEWAL, A RENEWAL APPLICATION MAY BE  COMPLETED  AND  FILED
WITH THE SUPERINTENDENT FOR THE ENSUING TERM OF A LICENSE; HOWEVER, IF A
CERTIFICATE OF APPOINTMENT IS NOT FILED ON THE AGENT'S BEHALF WITHIN THE
TERM  OF THE RENEWAL, THE LICENSE WILL EXPIRE AND WILL NOT BE RENEWED AT
THE END OF THE LICENSE TERM. DURING THE TERM OF THE LICENSE FOR WHICH NO
CERTIFICATE OF APPOINTMENT WAS ON FILE, IT SHALL BE DEEMED TO  BE  INAC-
TIVE.
  (6) IF AN APPLICATION FOR A RENEWAL LICENSE SHALL HAVE BEEN FILED WITH
THE  SUPERINTENDENT  BEFORE  THE EXPIRATION OF SUCH LICENSE, THE LICENSE
SOUGHT TO BE RENEWED SHALL CONTINUE IN  FULL  FORCE  AND  EFFECT  EITHER
UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL LICENSE APPLIED
FOR OR UNTIL FIVE DAYS AFTER THE SUPERINTENDENT SHALL  HAVE  REFUSED  TO
ISSUE  SUCH  RENEWAL LICENSE AND SHALL HAVE GIVEN NOTICE OF SUCH REFUSAL
TO THE APPLICANT AND TO EACH PROPOSED SUB-LICENSEE. BEFORE  REFUSING  TO
RENEW ANY SUCH LICENSE, THE SUPERINTENDENT SHALL NOTIFY THE APPLICANT OF
HIS OR HER INTENTION TO DO SO AND SHALL GIVE SUCH APPLICANT A HEARING.
  (7)(A)  THE  SUPERINTENDENT  MAY IN ISSUING A RENEWAL LICENSE DISPENSE
WITH THE REQUIREMENTS OF A VERIFIED APPLICATION BY AN INDIVIDUAL  LICEN-
SEE  WHO,  BY  REASON  OF  BEING ENGAGED IN ANY MILITARY SERVICE FOR THE
UNITED STATES, IS UNABLE TO MAKE PERSONAL APPLICATION FOR  SUCH  RENEWAL
LICENSE, UPON THE FILING OF AN APPLICATION ON BEHALF OF SUCH INDIVIDUAL,
IN  SUCH  FORM  AS THE SUPERINTENDENT SHALL PRESCRIBE, BY SOME PERSON OR
PERSONS WHO IN HIS OR HER JUDGMENT HAVE KNOWLEDGE OF THE FACTS  AND  WHO
MAKE  AFFIDAVIT  SHOWING SUCH MILITARY SERVICE AND THE INABILITY OF SUCH
TITLE INSURANCE AGENT TO MAKE PERSONAL APPLICATION.
  (B) AN INDIVIDUAL LICENSEE  WHO  IS  UNABLE  TO  COMPLY  WITH  LICENSE
RENEWAL  PROCEDURES  DUE  TO  OTHER EXTENUATING CIRCUMSTANCES, SUCH AS A
LONG-TERM MEDICAL DISABILITY, MAY REQUEST A WAIVER OF  SUCH  PROCEDURES,
IN  SUCH  FORM  AS  THE SUPERINTENDENT SHALL PRESCRIBE. THE LICENSEE MAY
ALSO REQUEST A WAIVER OF ANY EXAMINATION REQUIREMENT OR ANY  OTHER  FINE
OR SANCTION IMPOSED FOR FAILURE TO COMPLY WITH RENEWAL PROCEDURES.
  (8)  IN  ADDITION TO ANY EXAMINATION FEE REQUIRED BY SUBSECTION (E) OF
THIS SECTION, THERE SHALL BE PAID TO THE SUPERINTENDENT FOR EACH LICENSE
APPLICANT FOR THE TERM OF THE  LICENSE,  EXCEPT  ANY  LICENSE  APPLICANT
UNDER  SUBSECTION  (K) OF THIS SECTION, THE SUM OF THREE HUNDRED DOLLARS
AND FOR EACH PROPOSED SUB-LICENSEE THE SUM OF  FORTY  DOLLARS  FOR  EACH
YEAR OR FRACTION OF A YEAR IN WHICH A LICENSE SHALL BE VALID. IF, HOWEV-
ER,  THE LICENSE APPLICANT SHOULD WITHDRAW THE APPLICATION OR THE SUPER-
INTENDENT SHOULD DENY THE APPLICATION BEFORE THE LICENSE APPLIED FOR  IS
ISSUED,  THE SUPERINTENDENT MAY REFUND THE FEE PAID BY THE APPLICANT FOR
THE LICENSE APPLIED FOR WITH  THE  EXCEPTION  OF  ANY  EXAMINATION  FEES
REQUIRED PURSUANT TO SUBSECTION (E) OF THIS SECTION.

A. 9388                             8

  (9)  AN  APPLICATION  FOR THE RENEWAL OF A LICENSE SHALL BE FILED WITH
THE SUPERINTENDENT NOT LESS THAN  SIXTY  DAYS  PRIOR  TO  THE  DATE  THE
LICENSE  EXPIRES  OR THE APPLICANT SHALL BE SUBJECT TO A FURTHER FEE FOR
LATE FILING OF TEN DOLLARS.
  (10)  NO  LICENSE  FEE SHALL BE REQUIRED OF ANY PERSON WHO SERVED AS A
MEMBER OF THE ARMED FORCES OF THE UNITED STATES  AT  ANY  TIME  AND  WHO
SHALL  HAVE  BEEN  DISCHARGED  THEREFROM,  UNDER  CONDITIONS  OTHER THAN
DISHONORABLE, IN A CURRENT LICENSING PERIOD, FOR THE  DURATION  OF  SUCH
PERIOD.
  (11)  EXCEPT  WHERE  A  BUSINESS  ENTITY LICENSED AS A TITLE INSURANCE
AGENT IS APPLYING TO ADD A SUB-LICENSEE, OR THE DATE OF  THE  EXPIRATION
OF  THE  LICENSE  IS  CHANGED,  OR  A  CHANGE IS APPLIED FOR PURSUANT TO
SUBSECTION (L) OF THIS SECTION, THERE SHALL BE NO FEE REQUIRED  FOR  THE
ISSUANCE OF AN AMENDED LICENSE.
  (12)  THE LICENSE SHALL CONTAIN THE LICENSEE'S NAME, ADDRESS, PERSONAL
IDENTIFICATION NUMBER, THE DATE OF ISSUANCE, THE EXPIRATION DATE AND ANY
OTHER INFORMATION THE SUPERINTENDENT DEEMS NECESSARY.
  (K) ANY LICENSEE MAY AT ANY TIME WHILE SUCH LICENSE IS IN FORCE  APPLY
TO  THE SUPERINTENDENT FOR AN ADDITIONAL LICENSE OR LICENSES AUTHORIZING
SUCH LICENSEE, AND THE SUB-LICENSEES NAMED IN SUCH EXISTING LICENSE,  TO
ACT  AS TITLE INSURANCE AGENT FOR ONE OR MORE ADDITIONAL TITLE INSURANCE
CORPORATIONS. THE SUPERINTENDENT MAY, AFTER  THE  REQUIREMENTS  OF  THIS
CHAPTER  HAVE  BEEN COMPLIED WITH AND AFTER A CERTIFICATE OF APPOINTMENT
HAS BEEN FILED WITH THE SUPERINTENDENT BY  EACH  SUCH  ADDITIONAL  TITLE
INSURANCE  CORPORATION,  AS PROVIDED IN SECTION TWO THOUSAND ONE HUNDRED
FIFTY-EIGHT OF THIS ARTICLE, ISSUE SUCH ADDITIONAL LICENSE OR  LICENSES.
THERE  SHALL  BE A FEE OF FIFTEEN DOLLARS PAID TO THE SUPERINTENDENT FOR
THE ISSUANCE OF EACH ADDITIONAL LICENSE PURSUANT TO THIS SUBSECTION.
  (L) WITHIN SIXTY DAYS OF ANY CHANGE IN THE  IDENTITY  OF  ANY  OF  ITS
SUB-LICENSEES,  OR  CHANGE  IN ANY PERSON HAVING A FINANCIAL INTEREST IN
THE TITLE INSURANCE AGENT, THE TITLE INSURANCE AGENT SHALL APPLY TO  THE
SUPERINTENDENT  FOR  AN AMENDMENT TO THE LICENSE ON A FORM PRESCRIBED BY
THE SUPERINTENDENT CONTAINING ANY INFORMATION THE  SUPERINTENDENT  DEEMS
NECESSARY.  THERE  SHALL  BE  PAID  TO  THE SUPERINTENDENT FOR EACH SUCH
APPLICATION THE SUM OF TEN DOLLARS.
  (M) THE SUPERINTENDENT MAY ISSUE A  REPLACEMENT  FOR  A  CURRENTLY  IN
FORCE  LICENSE WHICH HAS BEEN LOST OR DESTROYED. BEFORE SUCH REPLACEMENT
LICENSE SHALL BE ISSUED, THERE SHALL BE ON FILE IN  THE  OFFICE  OF  THE
SUPERINTENDENT  A  WRITTEN  APPLICATION  FOR  SUCH  REPLACEMENT LICENSE,
AFFIRMING UNDER PENALTY OF PERJURY THAT THE ORIGINAL  LICENSE  HAS  BEEN
LOST OR DESTROYED, TOGETHER WITH A FEE OF FIFTEEN DOLLARS.
  S 2154. TEMPORARY LICENSE IN CASE OF DEATH, SERVICE IN ARMED FORCES OR
DISABILITY.
  (A)  THE  SUPERINTENDENT MAY ISSUE A TEMPORARY TITLE INSURANCE AGENT'S
LICENSE, WITHOUT REQUIRING THE APPLICANT TO PASS A WRITTEN  EXAMINATION,
IN  THE  CASE  OF  A  LICENSE  ISSUED  PURSUANT TO PARAGRAPH TWO OF THIS
SUBSECTION, IN THE FOLLOWING CASES:
  (1) IN THE CASE OF THE DEATH OF A PERSON WHO AT THE TIME OF HIS  DEATH
WAS A LICENSED TITLE INSURANCE AGENT UNDER SUBSECTION (A) OF SECTION TWO
THOUSAND ONE HUNDRED FIFTY-THREE OF THIS ARTICLE:
  (A)  TO  THE  EXECUTOR OR ADMINISTRATOR OF THE ESTATE OF SUCH DECEASED
AGENT;
  (B) TO A SURVIVING NEXT OF KIN OF SUCH DECEASED AGENT, WHERE NO ADMIN-
ISTRATOR OF HIS OR HER ESTATE HAS BEEN APPOINTED  AND  NO  EXECUTOR  HAS
QUALIFIED UNDER HIS OR HER DULY PROBATED WILL;

A. 9388                             9

  (C) TO THE SURVIVING MEMBER OR MEMBERS OF A FIRM OR ASSOCIATION, WHICH
AT THE TIME OF THE DEATH OF A MEMBER WAS SUCH A LICENSED TITLE INSURANCE
AGENT; OR
  (D)  TO  AN OFFICER OR DIRECTOR OF A CORPORATION UPON THE DEATH OF THE
ONLY OFFICER OR DIRECTOR WHO WAS QUALIFIED AS A SUB-LICENSEE OR  TO  THE
EXECUTOR  OR  ADMINISTRATOR  OF  THE  ESTATE OF SUCH DECEASED OFFICER OR
DIRECTOR;
  (2) TO ANY PERSON WHO MAY BE DESIGNATED BY A PERSON LICENSED  PURSUANT
TO THIS ARTICLE AS A TITLE INSURANCE AGENT, AND WHO IS ABSENT BECAUSE OF
SERVICE  IN ANY BRANCH OF THE ARMED FORCES OF THE UNITED STATES, INCLUD-
ING A PARTNERSHIP OR CORPORATION WHICH  IS  LICENSED  PURSUANT  TO  THIS
ARTICLE  AS A TITLE INSURANCE AGENT, IN A CASE WHERE THE SUB-LICENSEE OR
ALL SUB-LICENSEES, IF MORE THAN ONE, NAMED IN THE  LICENSE  OR  LICENSES
ISSUED  TO  SUCH  PARTNERSHIP OR CORPORATION IS OR ARE ABSENT BECAUSE OF
SERVICE IN ANY BRANCH OF THE ARMED FORCES OF THE UNITED STATES; AND
  (3) TO THE NEXT OF KIN OF A PERSON WHO HAS BECOME TOTALLY DISABLED AND
PREVENTED FROM PURSUING ANY OF THE DUTIES OF HIS OR HER OCCUPATION,  AND
WHO  AT  THE  COMMENCEMENT OF HIS OR HER DISABILITY WAS A LICENSED TITLE
INSURANCE AGENT UNDER SUBSECTION (A) OF SECTION TWO THOUSAND ONE HUNDRED
FIFTY-THREE OF THIS ARTICLE.
  (B) (1) BEFORE ANY SUCH LICENSE OR LICENSES  SHALL  BE  ISSUED,  THERE
SHALL BE FILED IN THE OFFICE OF THE SUPERINTENDENT A WRITTEN APPLICATION
BY  THE  PERSON  OR  PERSONS DESIRING SUCH LICENSE OR LICENSES, TOGETHER
WITH A WRITTEN DESIGNATION OF SUCH PERSON OR PERSONS, IN THE CASE  OF  A
LICENSE  ISSUED  PURSUANT  TO  PARAGRAPH  TWO  OF SUBSECTION (A) OF THIS
SECTION, IN SUCH FORM OR FORMS AND SUPPLEMENTS THERETO,  AND  CONTAINING
SUCH INFORMATION, AS THE SUPERINTENDENT PRESCRIBES.
  (2) NO FEE SHALL BE CHARGED FOR ANY SUCH LICENSE OR ANY RENEWAL THERE-
OF,  EXCEPT THAT FEES FOR THE RENEWALS OF ANY LICENSE ISSUED PURSUANT TO
PARAGRAPH TWO OF SUBSECTION (A) OF THIS SECTION SHALL BE ONE-HALF OF THE
FEES OTHERWISE REQUIRED BY THIS CHAPTER FOR SUCH LICENSE.
  (C) SUCH LICENSE OR LICENSES SHALL AUTHORIZE  THE  PERSON  OR  PERSONS
NAMED  THEREIN TO RENEW THE BUSINESS OF THE DECEASED, ABSENT OR DISABLED
AGENT, AS THE CASE MAY BE, OR OF THE FIRM OR, IN THE CASE OF  A  LICENSE
ISSUED  PURSUANT  TO  PARAGRAPH  ONE  OR THREE OF SUBSECTION (A) OF THIS
SECTION, THE ASSOCIATION WHOSE BUSINESS IS BEING  CONTINUED  THEREUNDER,
EACH  SUCH  AGENT, FIRM OR ASSOCIATION BEING REFERRED TO IN THIS SECTION
AS "ORIGINAL LICENSEE", EXPIRING DURING THE PERIOD IN WHICH SUCH  TEMPO-
RARY LICENSE OR LICENSES ARE IN FORCE, TO COLLECT PREMIUMS DUE AND PAYA-
BLE  TO THE ORIGINAL LICENSEE OR, IN THE CASE OF A LICENSE ISSUED PURSU-
ANT TO PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION, TO  HIS  OR  HER
ESTATE,  AND  TO  PERFORM SUCH OTHER ACTS AS A TITLE INSURANCE AGENT, AS
THE CASE MAY BE, AS ARE INCIDENTAL  TO  THE  CONTINUANCE  OF  THE  TITLE
INSURANCE BUSINESS OF SUCH ORIGINAL LICENSEE.
  (D)  A  PERSON  ELIGIBLE  FOR SUCH A TEMPORARY TITLE INSURANCE AGENT'S
LICENSE MAY BE LICENSED ONLY AS A TITLE INSURANCE  AGENT  OF  THE  TITLE
INSURANCE  CORPORATION  OR CORPORATIONS WHICH SUCH ORIGINAL LICENSEE WAS
LICENSED TO REPRESENT AT THE TIME OF SUCH DEATH, ENTRANCE UPON  MILITARY
OR NAVAL DUTY OR DISABILITY.
  (E)  (1) IN THE CASE OF A LICENSE OR LICENSES ISSUED PURSUANT TO PARA-
GRAPH ONE OF SUBSECTION (A) OF THIS SECTION, THE LICENSE OR LICENSES MAY
BE ISSUED FOR A TERM NOT EXCEEDING NINETY DAYS FROM THE  DEATH  OF  SUCH
DECEASED, AND THE SUPERINTENDENT MAY IN HIS OR HER DISCRETION RENEW SUCH
LICENSE OR LICENSES FOR AN ADDITIONAL TERM OR TERMS OF NINETY DAYS EACH,
NOT EXCEEDING IN THE AGGREGATE FIFTEEN MONTHS.

A. 9388                            10

  (2)  THE  SUPERINTENDENT  MAY ISSUE RENEWAL LICENSES FOR AN ADDITIONAL
TERM OR TERMS OF NINETY DAYS EACH  EXCEEDING  THE  AGGREGATE  PERIOD  OF
FIFTEEN MONTHS WHEN IN HIS OR HER JUDGMENT IT WILL BEST SERVE THE INTER-
ESTS OF ANY PERSON SERVING IN THE ARMED FORCES OF THE UNITED STATES.
  (3)  A  LICENSE  ISSUED  TO  THE  NEXT OF KIN SHALL NOT BE RENEWED IF,
BEFORE THE EXPIRATION OF ITS TERM, AN ADMINISTRATOR OR EXECUTOR  OF  THE
DECEASED SHALL HAVE APPLIED FOR AND QUALIFIED FOR SUCH A LICENSE.
  (4) EXCEPT AS PROVIDED IN SUBSECTION (H) OF THIS SECTION, NO PERSON OR
PERSONS  SO  LICENSED SHALL, BY VIRTUE OF SUCH LICENSE, BE AUTHORIZED TO
SOLICIT, NEGOTIATE OR SELL NEW TITLE INSURANCE.
  (F) (1) IN THE CASE OF A LICENSE OR LICENSES ISSUED PURSUANT TO  PARA-
GRAPH TWO OF SUBSECTION (A) OF THIS SECTION, THE LICENSE OR LICENSES MAY
BE  ISSUED  FOR  A TERM NOT EXCEEDING SIX MONTHS, AND THE SUPERINTENDENT
MAY IN HIS OR HER DISCRETION RENEW SUCH LICENSE OR LICENSES FOR AN ADDI-
TIONAL TERM OR TERMS OF SIX MONTHS EACH.
  (2) THE TERM OF ANY SUCH LICENSE OR RENEWAL SHALL IN NO  EVENT  EXTEND
BEYOND  SIXTY DAYS AFTER THE FINAL DISCHARGE OF SUCH ABSENT TITLE INSUR-
ANCE AGENT FROM MILITARY OR NAVAL DUTY, AND EACH SUCH LICENSE OR RENEWAL
SHALL EXPIRE ON SUCH DAY AS IF THAT WERE THE DAY SPECIFIED  THEREIN  FOR
THE EXPIRATION THEREOF.
  (3) EXCEPT AS PROVIDED IN SUBSECTION (H) OF THIS SECTION, NO PERSON SO
LICENSED SHALL SOLICIT NEW BUSINESS UNDER SUCH LICENSE.
  (G)(1)  IN  THE CASE OF A LICENSE OR LICENSES ISSUED PURSUANT TO PARA-
GRAPH THREE OF SUBSECTION (A) OF THIS SECTION, THE LICENSE  OR  LICENSES
MAY  BE  ISSUED FOR A TERM NOT EXCEEDING NINETY DAYS FROM THE DISABILITY
OF SUCH PERSON, AND THE SUPERINTENDENT MAY  IN  HIS  OR  HER  DISCRETION
RENEW SUCH LICENSE OR LICENSES FOR AN ADDITIONAL TERM OR TERMS OF NINETY
DAYS EACH, NOT EXCEEDING IN THE AGGREGATE FIFTEEN MONTHS.
  (2) EXCEPT AS PROVIDED IN SUBSECTION (H) OF THIS SECTION, NO PERSON OR
PERSONS  SO  LICENSED SHALL, BY VIRTUE OF SUCH LICENSE, BE AUTHORIZED TO
SOLICIT, NEGOTIATE OR SELL NEW TITLE INSURANCE.
  (H) A TITLE INSURANCE CORPORATION FOR WHOM A DECEASED PERSON, A  DISA-
BLED  PERSON  OR A PERSON ABSENT BECAUSE OF SERVICE IN ANY BRANCH OF THE
ARMED FORCES OF THE UNITED STATES HAD BEEN ACTING AS  A  LICENSED  TITLE
INSURANCE AGENT OR ITS SUB-LICENSEE, MAY GIVE A PERSON OR PERSONS ISSUED
A  TEMPORARY LICENSE PURSUANT TO THIS SECTION WRITTEN APPROVAL TO SOLIC-
IT, NEGOTIATE AND SELL NEW TITLE INSURANCE AND SUCH  PERSON  OR  PERSONS
MAY THEREAFTER DO SO UNDER SUCH TEMPORARY LICENSE, INCLUDING ANY RENEWAL
OR EXTENSION THEREOF, UNLESS AND UNTIL SUCH APPROVAL IS REVOKED IN WRIT-
ING BY THE TITLE INSURANCE CORPORATION.
  S  2155.  REVOCATION OR SUSPENSION OF LICENSE OF TITLE INSURANCE AGENT
OR CERTIFICATE OF APPOINTMENT OF A SUB-LICENSEE OR AN ATTORNEY ACTING AS
A TITLE INSURANCE AGENT. (A) THE SUPERINTENDENT  MAY  REFUSE  TO  RENEW,
REVOKE,  OR  MAY  SUSPEND FOR A PERIOD THE SUPERINTENDENT DETERMINES THE
LICENSE OF ANY TITLE INSURANCE AGENT, IF, AFTER NOTICE AND HEARING,  THE
SUPERINTENDENT DETERMINES THAT THE LICENSEE OR ANY SUB-LICENSEE HAS:
  (1)  VIOLATED  ANY INSURANCE LAW, OR VIOLATED ANY REGULATION, SUBPOENA
OR ORDER OF THE SUPERINTENDENT OF INSURANCE OR OF ANOTHER STATE'S INSUR-
ANCE COMMISSIONER, OR HAS VIOLATED ANY LAW IN THE COURSE OF HIS  OR  HER
DEALINGS IN SUCH CAPACITY;
  (2)  PROVIDED  MATERIALLY INCORRECT, MATERIALLY MISLEADING, MATERIALLY
INCOMPLETE OR MATERIALLY UNTRUE INFORMATION IN THE LICENSE APPLICATION;
  (3) OBTAINED OR ATTEMPTED TO OBTAIN  A  LICENSE  THROUGH  MISREPRESEN-
TATION OR FRAUD;
  (4)(A) USED FRAUDULENT, COERCIVE OR DISHONEST PRACTICES;
  (B) DEMONSTRATED INCOMPETENCE;

A. 9388                            11

  (C) DEMONSTRATED UNTRUSTWORTHINESS; OR
  (D) DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT OF BUSINESS
IN THIS STATE OR ELSEWHERE;
  (5)  IMPROPERLY  WITHHELD,  MISAPPROPRIATED OR CONVERTED ANY MONIES OR
PROPERTIES RECEIVED IN THE COURSE OF BUSINESS IN  THIS  STATE  OR  ELSE-
WHERE;
  (6)  INTENTIONALLY  MISREPRESENTED  THE TERMS OF AN ACTUAL OR PROPOSED
TITLE INSURANCE CONTRACT OR APPLICATION FOR TITLE INSURANCE;
  (7) HAS BEEN CONVICTED OF A FELONY;
  (8) ADMITTED OR BEEN FOUND TO  HAVE  COMMITTED  ANY  INSURANCE  UNFAIR
TRADE PRACTICE OR FRAUD;
  (9)  HAD  A  TITLE  INSURANCE  AGENT  LICENSE,  OR  AN INSURANCE AGENT
LICENSE, OR ITS EQUIVALENT, DENIED, SUSPENDED OR REVOKED  IN  ANY  OTHER
STATE, PROVINCE, DISTRICT OR TERRITORY;
  (10)  FORGED  ANOTHER'S  NAME TO AN APPLICATION FOR TITLE INSURANCE OR
FOR ANY OTHER INSURANCE OR TO ANY DOCUMENT RELATED TO A TITLE  INSURANCE
TRANSACTION OR TO ANY OTHER INSURANCE TRANSACTION;
  (11) IMPROPERLY USED NOTES OR ANY OTHER REFERENCE MATERIAL TO COMPLETE
AN EXAMINATION FOR AN INSURANCE LICENSE;
  (12) FAILED TO COMPLY WITH AN ADMINISTRATIVE OR COURT ORDER IMPOSING A
CHILD SUPPORT OBLIGATION; OR
  (13)  FAILED TO PAY STATE INCOME TAX OR COMPLY WITH ANY ADMINISTRATIVE
OR COURT ORDER DIRECTING PAYMENT OF STATE INCOME TAX.
  (B) BEFORE REVOKING OR SUSPENDING THE LICENSE OF ANY  TITLE  INSURANCE
AGENT  PURSUANT  TO  THE  PROVISIONS OF THIS ARTICLE, THE SUPERINTENDENT
SHALL, EXCEPT  WHEN  PROCEEDING  PURSUANT  TO  SUBSECTION  (F)  OF  THIS
SECTION, GIVE NOTICE TO THE LICENSEE AND TO EVERY SUB-LICENSEE AND SHALL
HOLD,  OR  CAUSE  TO BE HELD, A HEARING NOT LESS THAN TEN DAYS AFTER THE
GIVING OF SUCH NOTICE.
  (C) IF A TITLE INSURANCE AGENT'S LICENSE PURSUANT TO THE PROVISIONS OF
THIS ARTICLE IS REVOKED OR SUSPENDED BY THE SUPERINTENDENT,  HE  OR  SHE
SHALL FORTHWITH GIVE NOTICE TO THE LICENSEE.
  (D)  THE  REVOCATION  OR  SUSPENSION  OF  ANY  TITLE INSURANCE AGENT'S
LICENSE PURSUANT TO THE  PROVISIONS  OF  THIS  ARTICLE  SHALL  TERMINATE
FORTHWITH  SUCH  TITLE  INSURANCE  AGENT'S  LICENSE  AND  THE  AUTHORITY
CONFERRED THEREBY UPON ALL SUB-LICENSEES AND ATTORNEYS.
  (E)(1) NO INDIVIDUAL OR BUSINESS ENTITY,  WHOSE  LICENSE  AS  A  TITLE
INSURANCE  AGENT  SUBJECT  TO  SUBSECTION  (A)  OF THIS SECTION HAS BEEN
REVOKED, AND NO BUSINESS ENTITY OF WHICH SUCH INDIVIDUAL  IS  A  MEMBER,
OFFICER  OR  DIRECTOR, SHALL BE ENTITLED TO OBTAIN ANY LICENSE UNDER THE
PROVISIONS OF THIS CHAPTER FOR A PERIOD OF ONE YEAR AFTER  SUCH  REVOCA-
TION,  OR, IF SUCH REVOCATION BE JUDICIALLY REVIEWED, FOR ONE YEAR AFTER
THE FINAL DETERMINATION THEREOF AFFIRMING THE ACTION OF THE  SUPERINTEN-
DENT IN REVOKING SUCH LICENSE.
  (2)  IF  ANY  SUCH  LICENSE  HELD  BY A BUSINESS ENTITY BE REVOKED, NO
MEMBER, OFFICER OR DIRECTOR OF SUCH BUSINESS ENTITY SHALL BE ENTITLED TO
OBTAIN ANY LICENSE, OR TO  BE  NAMED  AS  A  SUB-LICENSEE  IN  ANY  SUCH
LICENSE,  FOR  THE SAME PERIOD OF TIME, UNLESS THE SUPERINTENDENT DETER-
MINES, AFTER NOTICE AND HEARING, THAT SUCH MEMBER, OFFICER  OR  DIRECTOR
WAS  NOT  PERSONALLY  AT  FAULT  IN  THE MATTER ON ACCOUNT OF WHICH SUCH
LICENSE WAS REVOKED.
  (F) IF ANY LICENSED TITLE INSURANCE  AGENT  OR  ANY  PERSON  AGGRIEVED
SHALL  FILE  WITH  THE SUPERINTENDENT A VERIFIED COMPLAINT SETTING FORTH
FACTS TENDING TO SHOW SUFFICIENT GROUND FOR THE REVOCATION OR SUSPENSION
OF ANY TITLE INSURANCE AGENT'S LICENSE, THE SUPERINTENDENT SHALL,  AFTER

A. 9388                            12

NOTICE AND HEARING, DETERMINE WHETHER SUCH LICENSE SHALL BE SUSPENDED OR
REVOKED.
  (G)  THE  SUPERINTENDENT  SHALL  RETAIN  THE  AUTHORITY TO ENFORCE THE
PROVISIONS OF AND IMPOSE ANY PENALTY OR REMEDY AUTHORIZED BY THIS  CHAP-
TER AGAINST ANY INDIVIDUAL OR BUSINESS ENTITY WHO IS UNDER INVESTIGATION
FOR  OR  CHARGED  WITH A VIOLATION OF THIS CHAPTER, EVEN IF THE INDIVID-
UAL'S OR BUSINESS ENTITY'S LICENSE HAS BEEN SURRENDERED, OR HAS  EXPIRED
OR HAS LAPSED BY OPERATION OF LAW.
  (H) A LICENSEE SUBJECT TO THIS ARTICLE SHALL REPORT TO THE SUPERINTEN-
DENT  ANY  ADMINISTRATIVE  ACTION  TAKEN AGAINST THE LICENSEE IN ANOTHER
JURISDICTION OR BY ANOTHER GOVERNMENTAL  AGENCY  IN  THIS  STATE  WITHIN
THIRTY  DAYS  OF  THE FINAL DISPOSITION OF THE MATTER. THIS REPORT SHALL
INCLUDE A COPY OF THE ORDER, CONSENT TO ORDER OR  OTHER  RELEVANT  LEGAL
DOCUMENTS.
  (I)  WITHIN THIRTY DAYS OF THE INITIAL PRETRIAL HEARING DATE, A LICEN-
SEE SUBJECT TO THIS ARTICLE SHALL REPORT TO THE SUPERINTENDENT ANY CRIM-
INAL PROSECUTION OF THE LICENSEE TAKEN IN ANY JURISDICTION.  THE  REPORT
SHALL INCLUDE A COPY OF THE INITIAL COMPLAINT FILED, THE ORDER RESULTING
FROM THE HEARING AND ANY OTHER RELEVANT LEGAL DOCUMENTS.
  (J)(1)  THE  SUPERINTENDENT MAY REVOKE OR MAY SUSPEND FOR A PERIOD THE
SUPERINTENDENT DETERMINES THE CERTIFICATE OF APPOINTMENT OF ANY  SUB-LI-
CENSEE  OR  ATTORNEY ISSUED PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED
FIFTY-EIGHT OF THIS ARTICLE, IF, AFTER NOTICE AND  HEARING,  THE  SUPER-
INTENDENT  DETERMINES  THAT  SUCH SUB-LICENSEE OR ATTORNEY HAS COMMITTED
ANY ACT SPECIFIED IN PARAGRAPHS ONE THROUGH THIRTEEN OF  SUBSECTION  (A)
OF  THIS  SECTION  OR IF SUCH ATTORNEY'S LICENSE TO PRACTICE LAW IN THIS
STATE IS SUSPENDED OR REVOKED.
  (2) NO SUB-LICENSEE OR ATTORNEY WHOSE CERTIFICATE OF  APPOINTMENT  HAS
BEEN REVOKED SHALL BE ENTITLED TO OBTAIN A CERTIFICATE OF APPOINTMENT OR
LICENSE  UNDER  THE  PROVISIONS  OF THIS ARTICLE FOR ONE YEAR AFTER SUCH
REVOCATION, OR, IF SUCH REVOCATION BE JUDICIALLY REVIEWED, FOR ONE  YEAR
AFTER THE FINAL DETERMINATION THEREOF AFFIRMING THE ACTION OF THE SUPER-
INTENDENT IN REVOKING SUCH CERTIFICATE.
  (3) THE IMPOSITION OF ANY PENALTY UNDER THIS ARTICLE AGAINST AN ATTOR-
NEY  SHALL NOT LIMIT THE AUTHORITY OF ANY COURT TO IMPOSE ANY DISCIPLINE
AGAINST THE ATTORNEY PURSUANT TO ANY OTHER LAW OR RULE.
  S 2156. PENALTIES FOR VIOLATIONS. (A) THE SUPERINTENDENT, IN  LIEU  OF
REVOKING  OR  SUSPENDING  THE  LICENSE OF A LICENSEE OR A CERTIFICATE OF
APPOINTMENT OF A SUB-LICENSEE OR AN  ATTORNEY  IN  ACCORDANCE  WITH  THE
PROVISIONS  OF THIS ARTICLE, MAY IN ANY ONE PROCEEDING BY ORDER, REQUIRE
THE LICENSEE, SUB-LICENSEE OR ATTORNEY TO PAY  TO  THE  PEOPLE  OF  THIS
STATE  A  PENALTY  IN  A SUM NOT EXCEEDING FIVE HUNDRED DOLLARS FOR EACH
OFFENSE, AND A PENALTY  IN  A  SUM  NOT  EXCEEDING  TWENTY-FIVE  HUNDRED
DOLLARS IN THE AGGREGATE FOR ALL OFFENSES.
  (B)  UPON  THE FAILURE OF SUCH A LICENSEE, SUB-LICENSEE OR ATTORNEY TO
PAY SUCH PENALTY ORDERED PURSUANT TO  SUBSECTION  (A)  OF  THIS  SECTION
WITHIN  TWENTY  DAYS  AFTER  THE MAILING OF SUCH ORDER, POSTAGE PREPAID,
REGISTERED, AND ADDRESSED TO THE LAST KNOWN PLACE OF  BUSINESS  OF  SUCH
LICENSEE,  SUB-LICENSEE  OR  ATTORNEY, UNLESS SUCH ORDER IS STAYED BY AN
ORDER OF A COURT  OF  COMPETENT  JURISDICTION,  THE  SUPERINTENDENT  MAY
REVOKE THE LICENSE OF SUCH LICENSEE OR THE CERTIFICATE OF APPOINTMENT OF
SUCH  SUB-LICENSEE  OR ATTORNEY ISSUED UNDER THIS ARTICLE OR MAY SUSPEND
THE SAME FOR SUCH PERIOD AS HE OR SHE DETERMINES.
  (C) IN ADDITION TO OR IN LIEU OF REVOKING OR SUSPENDING THE LICENSE OF
A LICENSEE OR A CERTIFICATE OF  APPOINTMENT  OF  A  SUB-LICENSEE  OR  AN
ATTORNEY IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, AND IN ADDI-

A. 9388                            13

TION  TO OR IN LIEU OF ANY PENALTY IMPOSED PURSUANT TO SUBSECTION (A) OF
THIS SECTION, THE SUPERINTENDENT MAY REQUIRE A LICENSEE, SUB-LICENSEE OR
ATTORNEY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A SUM EQUAL TO THE
TITLE  INSURANCE  PREMIUM  OR  OTHER COMPENSATION RECEIVED BY THE PERSON
FOUND TO HAVE VIOLATED SECTION TWO THOUSAND ONE  HUNDRED  FIFTY-FIVE  OF
THIS  ARTICLE,  IN CONNECTION WITH ANY TRANSACTION WHICH THE SUPERINTEN-
DENT FINDS TO HAVE CONSTITUTED A GROUND FOR  SUCH  A  VIOLATION,  EXCEPT
THAT  SUCH SUM SHALL NOT INCLUDE ANY PORTION OF A PREMIUM DUE TO A TITLE
INSURANCE CORPORATION.
  (D) NOTHING IN THIS ARTICLE SHALL LIMIT THE AUTHORITY  OF  THE  SUPER-
INTENDENT  TO MAINTAIN AN ACTION FOR THE PURPOSE OF OBTAINING AN INJUNC-
TION PURSUANT TO SECTION THREE HUNDRED TWENTY-SEVEN OF THIS CHAPTER.
  S 2157. REVOKED LICENSEES. (A)(1) NO PERSON SUBJECT TO THE  PROVISIONS
OF  THIS  CHAPTER  WHOSE LICENSE UNDER THIS ARTICLE HAS BEEN REVOKED, OR
WHOSE LICENSE TO ENGAGE IN THE BUSINESS OF INSURANCE IN ANY CAPACITY HAS
BEEN REVOKED BY ANY OTHER STATE OR TERRITORY OF THE UNITED STATES  SHALL
BECOME  EMPLOYED  OR APPOINTED BY A TITLE INSURANCE AGENT AS AN OFFICER,
DIRECTOR, MANAGER, CONTROLLING PERSON OR FOR OTHER SERVICES, WITHOUT THE
PRIOR WRITTEN APPROVAL OF THE SUPERINTENDENT, UNLESS SUCH  SERVICES  ARE
FOR MAINTENANCE OR ARE CLERICAL OR MINISTERIAL IN NATURE.
  (2) NO PERSON SUBJECT TO THE PROVISIONS OF THIS CHAPTER SHALL KNOWING-
LY  EMPLOY OR APPOINT ANY PERSON WHOSE LICENSE ISSUED UNDER THIS ARTICLE
HAS BEEN REVOKED, OR WHOSE LICENSE TO ENGAGE IN THE BUSINESS  OF  INSUR-
ANCE IN ANY CAPACITY HAS BEEN REVOKED BY ANY OTHER STATE OR TERRITORY OF
THE  UNITED STATES, AS AN OFFICER, DIRECTOR, MANAGER, CONTROLLING PERSON
OR FOR OTHER SERVICES, WITHOUT THE PRIOR WRITTEN APPROVAL OF THE  SUPER-
INTENDENT,  UNLESS  SUCH SERVICES ARE FOR MAINTENANCE OR ARE CLERICAL OR
MINISTERIAL IN NATURE.
  (3) NO CORPORATION OR PARTNERSHIP SUBJECT TO THE  PROVISIONS  OF  THIS
CHAPTER  SHALL  KNOWINGLY  PERMIT  ANY PERSON WHOSE LICENSE ISSUED UNDER
THIS ARTICLE HAS BEEN REVOKED, OR WHOSE LICENSE TO ENGAGE IN  THE  BUSI-
NESS  OF  INSURANCE IN ANY CAPACITY HAS BEEN REVOKED BY ANY OTHER STATE,
OR TERRITORY OF THE UNITED STATES, TO BE A SHAREHOLDER OR HAVE AN INTER-
EST IN SUCH CORPORATION OR PARTNERSHIP, NOR SHALL ANY SUCH PERSON BECOME
A SHAREHOLDER OR PARTNER IN SUCH CORPORATION OR PARTNERSHIP, WITHOUT THE
PRIOR WRITTEN APPROVAL OF THE SUPERINTENDENT.
  (4) FOR THE PURPOSE OF THIS SECTION  A  "CONTROLLING  PERSON"  IS  ANY
PERSON  WHO OR WHICH, DIRECTLY OR INDIRECTLY, HAS THE POWER TO DIRECT OR
CAUSE TO BE DIRECTED THE  MANAGEMENT,  CONTROL  OR  ACTIVITIES  OF  SUCH
LICENSEE.
  (B)  THE  SUPERINTENDENT  MAY  APPROVE  THE EMPLOYMENT, APPOINTMENT OR
PARTICIPATION OF ANY SUCH PERSON WHOSE LICENSE HAS BEEN REVOKED:
  (1) IF HE OR SHE DETERMINES THAT THE DUTIES  AND  RESPONSIBILITIES  OF
SUCH  PERSON ARE SUBJECT TO APPROPRIATE SUPERVISION AND THAT SUCH DUTIES
AND RESPONSIBILITIES WILL NOT HAVE AN ADVERSE EFFECT  UPON  THE  PUBLIC,
OTHER  LICENSEES, OR THE LICENSEE PROPOSING EMPLOYMENT OR APPOINTMENT OF
SUCH PERSON; OR
  (2) IF SUCH PERSON HAS FILED AN APPLICATION FOR  RELICENSING  PURSUANT
TO  THIS  ARTICLE  AND  THE  APPLICATION  FOR  RELICENSING  HAS NOT BEEN
APPROVED OR DENIED WITHIN ONE HUNDRED TWENTY DAYS FOLLOWING  THE  FILING
THEREOF,  UNLESS THE SUPERINTENDENT DETERMINES WITHIN THE SAID TIME THAT
EMPLOYMENT OR APPOINTMENT OF SUCH PERSON BY A LICENSEE IN THE CONDUCT OF
AN INSURANCE BUSINESS WOULD NOT BE IN THE PUBLIC INTEREST.
  (C) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE OWNERSHIP OF
SHARES OF ANY CORPORATION LICENSED  PURSUANT  TO  THIS  CHAPTER  IF  THE
SHARES  OF  SUCH  CORPORATION  ARE  PUBLICLY  HELD  AND  TRADED  IN  THE

A. 9388                            14

OVER-THE-COUNTER MARKET OR UPON  ANY  NATIONAL  OR  REGIONAL  SECURITIES
EXCHANGE.
  (D)  THE  PROVISIONS  OF  THIS  SECTION  SHALL  APPLY TO RELATIONSHIPS
CREATED OR PROPOSED ON OR AFTER THE EFFECTIVE DATE OF THIS  SECTION,  AS
WELL AS TO ANY PERSON WHOSE LICENSE IS REVOKED ON OR AFTER SUCH DATE.
  S  2158.  CERTIFICATE  OF  APPOINTMENT  AND NOTICE OF TERMINATION OF A
TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY. (A) EVERY TITLE  INSUR-
ANCE  CORPORATION  DOING BUSINESS IN THIS STATE SHALL FILE A CERTIFICATE
OF APPOINTMENT IN SUCH FORM AS THE SUPERINTENDENT MAY PRESCRIBE IN ORDER
TO APPOINT TITLE INSURANCE AGENTS OR ATTORNEYS LICENSED TO PRACTICE  LAW
IN  THIS  STATE TO ACT AS TITLE INSURANCE AGENTS ON BEHALF OF SUCH TITLE
INSURANCE CORPORATIONS.
  (B)(1) TO APPOINT A TITLE INSURANCE AGENT, THE APPOINTING TITLE INSUR-
ANCE CORPORATION SHALL FILE, IN A FORMAT APPROVED BY THE SUPERINTENDENT,
A CERTIFICATE OF APPOINTMENT STATING THAT IT HAS MADE SUCH INVESTIGATION
OF THE PROSPECTIVE TITLE INSURANCE AGENT AS IT  DEEMED  APPROPRIATE  AND
THAT SUCH TITLE INSURANCE CORPORATION APPOINTS SUCH PROSPECTIVE LICENSEE
SO  NAMED TO ACT AS ITS AGENT IF A LICENSE AS A TITLE INSURANCE AGENT IS
ISSUED BY THE SUPERINTENDENT TO THE PROSPECTIVE LICENSEE.  SUCH  CERTIF-
ICATE  SHALL  BE  SUBSCRIBED BY AN OFFICER OF THE TITLE INSURANCE CORPO-
RATION AND AFFIRMED BY SUCH OFFICER AS TRUE UNDER PENALTY OF PERJURY.
  (2) TO APPOINT AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS  STATE  TO
ACT AS A TITLE INSURANCE AGENT IN THIS STATE, PURSUANT TO SUBSECTION (F)
OF SECTION TWO THOUSAND ONE HUNDRED FIFTY-TWO OF THIS ARTICLE, OR TO ACT
UNDER  A  LICENSE  ISSUED  TO A BUSINESS ENTITY, PURSUANT TO SECTION TWO
THOUSAND ONE HUNDRED FIFTY-THREE OF THIS ARTICLE, THE  APPOINTING  TITLE
INSURANCE  CORPORATION  SHALL  FILE,  IN A FORMAT APPROVED BY THE SUPER-
INTENDENT, A CERTIFICATE OF APPOINTMENT STATING THAT IT  HAS  MADE  SUCH
INVESTIGATION  OF  THE  ATTORNEY  AS  IT DEEMS APPROPRIATE AND THAT SUCH
TITLE INSURANCE CORPORATION APPOINTS SUCH ATTORNEY SO NAMED  TO  ACT  AS
ITS  AGENT.  SUCH  CERTIFICATE  SHALL BE SUBSCRIBED BY AN OFFICER OF THE
TITLE INSURANCE CORPORATION AND AFFIRMED BY SUCH OFFICER AS  TRUE  UNDER
PENALTY OF PERJURY.
  (3)  TO APPOINT A SUB-LICENSEE TO ACT AS A TITLE INSURANCE AGENT UNDER
A LICENSE ISSUED TO A BUSINESS ENTITY, PURSUANT TO SECTION TWO  THOUSAND
ONE  HUNDRED FIFTY-THREE OF THIS ARTICLE, THE APPOINTING TITLE INSURANCE
CORPORATION SHALL FILE, IN A FORMAT APPROVED BY  THE  SUPERINTENDENT,  A
CERTIFICATE  OF  APPOINTMENT STATING THAT IT HAS MADE SUCH INVESTIGATION
OF THE SUB-LICENSEE AS IT DEEMS APPROPRIATE AND THAT SUCH  TITLE  INSUR-
ANCE  CORPORATION  APPOINTS  SUCH  INDIVIDUAL  SO  NAMED  TO ACT AS SUCH
SUB-LICENSEE.  SUCH CERTIFICATE SHALL BE SUBSCRIBED BY AN OFFICER OF THE
TITLE INSURANCE CORPORATION AND AFFIRMED BY SUCH OFFICER AS  TRUE  UNDER
PENALTY OF PERJURY.
  (C) CERTIFICATES OF APPOINTMENT SHALL BE VALID UNTIL (1) TERMINATED BY
THE  APPOINTING  TITLE  INSURANCE  CORPORATION  AFTER  A  TERMINATION IN
ACCORDANCE WITH THE PROVISIONS OF THE AGENCY CONTRACT; (2)  THE  LICENSE
OR  THE CERTIFICATE OF APPOINTMENT IS SUSPENDED OR REVOKED BY THE SUPER-
INTENDENT; OR (3) THE LICENSE EXPIRES AND IS NOT RENEWED.
  (D) EVERY TITLE INSURANCE CORPORATION OR THE AUTHORIZED REPRESENTATIVE
OF THE TITLE INSURANCE CORPORATION DOING BUSINESS IN THIS  STATE  SHALL,
UPON  TERMINATION  OF  THE  CERTIFICATE  OF  APPOINTMENT AS SET FORTH IN
SUBSECTION (C) OF THIS SECTION OF ANY TITLE INSURANCE AGENT LICENSED  IN
THIS STATE, OR OF ANY SUB-LICENSEE, OR OF ANY ATTORNEY LICENSED TO PRAC-
TICE  LAW IN THIS STATE, OR UPON TERMINATION FOR CAUSE FOR ACTIVITIES AS
SET FORTH  IN  SUBSECTION  (A)  OF  SECTION  TWO  THOUSAND  ONE  HUNDRED
FIFTY-FIVE  OF  THIS  ARTICLE,  OF THE CERTIFICATE OF APPOINTMENT OF ANY

A. 9388                            15

TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY, FILE  WITH  THE  SUPER-
INTENDENT  WITHIN  THIRTY  DAYS  A STATEMENT, IN SUCH FORM AS THE SUPER-
INTENDENT MAY PRESCRIBE, OF THE FACTS RELATIVE TO SUCH  TERMINATION  FOR
CAUSE.    THE  TITLE  INSURANCE CORPORATION, OR ITS AUTHORIZED REPRESEN-
TATIVE SHALL PROVIDE, WITHIN FIFTEEN DAYS AFTER  NOTIFICATION  HAS  BEEN
SENT  TO  THE  SUPERINTENDENT,  A  COPY  OF THE STATEMENT FILED WITH THE
SUPERINTENDENT TO THE TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY AT
HIS OR  HER  LAST  KNOWN  ADDRESS  BY  CERTIFIED  MAIL,  RETURN  RECEIPT
REQUESTED,  POSTAGE  PREPAID OR BY OVERNIGHT DELIVERY USING A NATIONALLY
RECOGNIZED CARRIER.  EVERY STATEMENT MADE PURSUANT  TO  THIS  SUBSECTION
SHALL BE DEEMED A PRIVILEGED COMMUNICATION.
  (E) THE TITLE INSURANCE CORPORATION, OR ITS AUTHORIZED REPRESENTATIVES
SHALL  PROMPTLY  NOTIFY THE SUPERINTENDENT IN A FORMAT ACCEPTABLE TO THE
SUPERINTENDENT IF, UPON  FURTHER  REVIEW  OR  INVESTIGATION,  THE  TITLE
INSURANCE  CORPORATION  OR ITS AUTHORIZED REPRESENTATIVE DISCOVERS ADDI-
TIONAL INFORMATION THAT WOULD HAVE BEEN REPORTABLE TO THE SUPERINTENDENT
HAD THE TITLE INSURANCE CORPORATION THEN KNOWN OF ITS EXISTENCE.   EVERY
STATEMENT  MADE PURSUANT TO THIS SUBSECTION SHALL BE DEEMED A PRIVILEGED
COMMUNICATION.
  (F) (1) WITHIN FIFTEEN DAYS AFTER MAKING THE NOTIFICATION REQUIRED  BY
SUBSECTION  (E)  OF  THIS SECTION THE TITLE INSURANCE CORPORATION OR ITS
AUTHORIZED REPRESENTATIVE SHALL MAIL A COPY OF THE NOTIFICATION  TO  THE
TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY AT HIS OR HER LAST KNOWN
ADDRESS  BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID OR
BY OVERNIGHT DELIVERY USING A NATIONALLY RECOGNIZED CARRIER.
  (2) WITHIN THIRTY DAYS AFTER THE TITLE INSURANCE  AGENT,  SUB-LICENSEE
OR  ATTORNEY  HAS  RECEIVED THE ORIGINAL OR ADDITIONAL NOTIFICATION, THE
TITLE  INSURANCE  AGENT,  SUB-LICENSEE  OR  ATTORNEY  MAY  FILE  WRITTEN
COMMENTS  CONCERNING  THE  SUBSTANCE OF THE NOTIFICATION WITH THE SUPER-
INTENDENT. THE TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY SHALL, BY
THE SAME MEANS, SIMULTANEOUSLY SEND  A  COPY  OF  THE  COMMENTS  TO  THE
REPORTING  TITLE  INSURANCE CORPORATION OR ITS AUTHORIZED REPRESENTATIVE
AND THE COMMENTS SHALL BECOME A PART OF THE  SUPERINTENDENT'S  FILE  AND
ACCOMPANY EVERY COPY OF A REPORT DISTRIBUTED OR DISCLOSED FOR ANY REASON
ABOUT  THE  TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY AS PERMITTED
BY SECTION ONE HUNDRED TEN OF THIS CHAPTER.
  (G)(1) IN THE ABSENCE OF FRAUD, BAD FAITH OR GROSS NEGLIGENCE, A TITLE
INSURANCE CORPORATION OR ITS AUTHORIZED REPRESENTATIVE, A  TITLE  INSUR-
ANCE  AGENT,  A  SUB-LICENSEE,  AN  ATTORNEY,  THE SUPERINTENDENT, OR AN
ORGANIZATION OF WHICH THE SUPERINTENDENT IS A MEMBER AND  THAT  COMPILES
THE  INFORMATION  AND  MAKES IT AVAILABLE TO OTHER INSURANCE SUPERINTEN-
DENTS OR COMMISSIONERS OR REGULATORY OR LAW ENFORCEMENT  AGENCIES  SHALL
NOT  BE  SUBJECT  TO CIVIL LIABILITY, AND A CIVIL CAUSE OF ACTION OF ANY
NATURE SHALL NOT ARISE AGAINST THESE ENTITIES OR THEIR RESPECTIVE AGENTS
OR EMPLOYEES AS A RESULT OF ANY STATEMENT OR INFORMATION REQUIRED BY  OR
PROVIDED  PURSUANT  TO  THIS  SECTION OR ANY INFORMATION RELATING TO ANY
STATEMENT THAT MAY BE REQUESTED IN WRITING BY THE SUPERINTENDENT, FROM A
TITLE INSURANCE CORPORATION, A TITLE INSURANCE AGENT, A SUB-LICENSEE  OR
AN  ATTORNEY,  OR  THE  AUTHORIZED  REPRESENTATIVE  OF ANY OF THEM, OR A
STATEMENT BY A TERMINATING TITLE INSURANCE CORPORATION OR THE AUTHORIZED
REPRESENTATIVE OF THE TITLE INSURANCE CORPORATION, OR A TITLE  INSURANCE
AGENT,  SUB-LICENSEE OR ATTORNEY TO A TITLE INSURANCE CORPORATION OR THE
AUTHORIZED REPRESENTATIVE OF  THE  TITLE  INSURANCE  CORPORATION,  TITLE
INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY LIMITED SOLELY AND EXCLUSIVELY
TO  WHETHER  A TERMINATION FOR CAUSE WAS REPORTED TO THE SUPERINTENDENT,
PROVIDED THAT THE PROPRIETY OF ANY TERMINATION FOR CAUSE IS CERTIFIED IN

A. 9388                            16

WRITING BY AN OFFICER OR AUTHORIZED REPRESENTATIVE OF THE  TITLE  INSUR-
ANCE CORPORATION TERMINATING THE RELATIONSHIP.
  (2)  IN  ANY  ACTION  BROUGHT  AGAINST A PERSON THAT MAY HAVE IMMUNITY
UNDER PARAGRAPH ONE OF THIS SUBSECTION FOR MAKING ANY STATEMENT REQUIRED
BY THIS SECTION OR PROVIDING ANY INFORMATION RELATING TO  ANY  STATEMENT
THAT  MAY  BE  REQUESTED  BY  THE SUPERINTENDENT, THE PARTY BRINGING THE
ACTION SHALL PLEAD SPECIFICALLY IN ANY ALLEGATION THAT PARAGRAPH ONE  OF
THIS  SUBSECTION  DOES NOT APPLY BECAUSE THE PERSON MAKING THE STATEMENT
OR PROVIDING THE INFORMATION  DID  SO  FRAUDULENTLY,  IN  BAD  FAITH  OR
THROUGH GROSS NEGLIGENCE.
  (3)  PARAGRAPHS  ONE  AND TWO OF THIS SUBSECTION SHALL NOT ABROGATE OR
MODIFY ANY EXISTING STATUTORY OR COMMON LAW PRIVILEGES OR IMMUNITIES.
  (H)(1) ANY DOCUMENTS, MATERIALS OR OTHER INFORMATION IN THE CONTROL OR
POSSESSION OF THE SUPERINTENDENT THAT ARE FURNISHED BY A TITLE INSURANCE
CORPORATION, TITLE INSURANCE  AGENT,  SUB-LICENSEE  OR  ATTORNEY  OR  AN
EMPLOYEE  OR  AGENT  THEREOF  ACTING  ON BEHALF THEREOF, RELATING TO THE
TERMINATION OF A TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY  PURSU-
ANT  TO  THIS  SECTION  OR OBTAINED BY THE SUPERINTENDENT IN AN INVESTI-
GATION PURSUANT TO THIS SECTION SHALL BE CONFIDENTIAL BY LAW AND  PRIVI-
LEGED,  SHALL  NOT  BE SUBJECT TO FREEDOM OF INFORMATION REQUESTS, SHALL
NOT BE SUBJECT TO SUBPOENA, AND SHALL NOT BE  SUBJECT  TO  DISCOVERY  OR
ADMISSIBLE  IN EVIDENCE IN ANY PRIVATE CIVIL ACTION. HOWEVER, THE SUPER-
INTENDENT IS AUTHORIZED TO USE THE DOCUMENTS, MATERIALS OR OTHER  INFOR-
MATION  IN  FURTHERANCE  OF  ANY REGULATORY OR LEGAL ACTION BROUGHT AS A
PART OF THE SUPERINTENDENT'S DUTIES. FURTHER, THIS PARAGRAPH  SHALL  NOT
APPLY TO ANY DOCUMENTS, MATERIALS OR OTHER INFORMATION IN THE CONTROL OR
POSSESSION  OF ANY PERSON OR ENTITY OTHER THAN THE SUPERINTENDENT OR THE
DEPARTMENT, REGARDLESS OF WHETHER OR NOT SUCH  DOCUMENTS,  MATERIALS  OR
OTHER  INFORMATION  ARE  IDENTICAL OR SIMILAR TO DOCUMENTS, MATERIALS OR
OTHER INFORMATION IN THE SUPERINTENDENT'S CONTROL OR POSSESSION TO WHICH
THE CONFIDENTIALITY RESTRICTIONS OF THIS PARAGRAPH APPLY.
  (2) NEITHER THE SUPERINTENDENT NOR ANY PERSON WHO RECEIVED  DOCUMENTS,
MATERIALS  OR  OTHER INFORMATION WHILE ACTING UNDER THE AUTHORITY OF THE
SUPERINTENDENT SHALL BE PERMITTED OR REQUIRED TO TESTIFY IN ANY  PRIVATE
CIVIL ACTION CONCERNING ANY CONFIDENTIAL DOCUMENTS, MATERIALS, OR INFOR-
MATION SUBJECT TO THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBSECTION.
  (3)  NOTHING  IN  THIS  ARTICLE SHALL PROHIBIT THE SUPERINTENDENT FROM
RELEASING FINAL, ADJUDICATED ACTIONS INCLUDING  FOR  CAUSE  TERMINATIONS
THAT ARE OPEN TO PUBLIC INSPECTION PURSUANT TO ARTICLE SIX OF THE PUBLIC
OFFICERS LAW TO A DATA BASE OR OTHER CLEARINGHOUSE SERVICE MAINTAINED BY
THE  NATIONAL  ASSOCIATION OF INSURANCE COMMISSIONERS, ITS AFFILIATES OR
SUBSIDIARIES.
  (I) A TITLE INSURANCE CORPORATION, A TITLE INSURANCE AGENT, A  SUB-LI-
CENSEE  OR  AN  ATTORNEY  THAT  FAILS  TO  REPORT  AS REQUIRED UNDER THE
PROVISIONS OF THIS SECTION OR THAT IS FOUND  TO  HAVE  REPORTED  FRAUDU-
LENTLY, IN BAD FAITH OR THROUGH GROSS NEGLIGENCE BY A COURT OF COMPETENT
JURISDICTION  MAY, AFTER NOTICE AND HEARING, HAVE ITS LICENSE OR CERTIF-
ICATE OF APPOINTMENT ISSUED UNDER THIS CHAPTER SUSPENDED OR REVOKED  AND
MAY  BE  FINED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF  THIS CHAPTER,
PROVIDED, HOWEVER, THAT A TITLE INSURANCE CORPORATION MAY BE FINED UP TO
FIVE THOUSAND DOLLARS. IN THE CASE OF A DOMESTIC TITLE INSURANCE  CORPO-
RATION,  THE  PROVISIONS  OF  ARTICLE SEVENTY-FOUR OF THIS CHAPTER SHALL
ALSO APPLY.
  S 2159. COMMISSIONS; PREMIUM SPLITTING AND OTHER  PROHIBITED  PAYMENTS
OR  RECEIPTS OF PAYMENTS. (A) NO TITLE INSURANCE CORPORATION DOING BUSI-
NESS IN THIS STATE, AND NO AGENT OR OTHER REPRESENTATIVE THEREOF, EXCEPT

A. 9388                            17

AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, SHALL PAY ANY  COMMISSION
OR  OTHER  COMPENSATION  TO  ANY  PERSON FOR ACTING AS A TITLE INSURANCE
AGENT IN THIS STATE, EXCEPT TO A PERSON LICENSED OR OTHERWISE AUTHORIZED
TO  ACT  AS A TITLE INSURANCE AGENT OF SUCH TITLE INSURANCE CORPORATION.
NO TITLE INSURANCE AGENT OR ANY REPRESENTATIVE OF SUCH AGENT  SHALL  PAY
ANY  COMMISSION OR COMPENSATION, EXCEPT AS PROVIDED IN SUBSECTION (E) OF
THIS SECTION, TO ANY OTHER TITLE INSURANCE AGENT OR  ANY  REPRESENTATIVE
OF SUCH AGENT.
  (B)  NO TITLE INSURANCE AGENT SHALL RECEIVE ANY COMMISSIONS OR FEES OR
SHARES THEREOF IN CONNECTION WITH   INSURANCE COVERAGES  PLACED  FOR  OR
INSURANCES SERVICES RENDERED TO THE STATE, ITS AGENCIES AND DEPARTMENTS,
PUBLIC  BENEFIT  CORPORATIONS,  MUNICIPALITIES  AND  OTHER  GOVERNMENTAL
SUBDIVISIONS IN THIS STATE, UNLESS SUCH TITLE INSURANCE  AGENT  ACTUALLY
PLACED  INSURANCE  COVERAGES ON BEHALF OF OR RENDERED INSURANCE SERVICES
TO THE STATE, ITS AGENCIES AND DEPARTMENTS, PUBLIC BENEFIT CORPORATIONS,
MUNICIPALITIES AND OTHER GOVERNMENTAL SUBDIVISIONS IN THIS STATE.
  (C) THE SUPERINTENDENT SHALL, BY REGULATION, REQUIRE  TITLE  INSURANCE
AGENTS  TO  FILE DISCLOSURE STATEMENTS WITH THE INSURANCE DEPARTMENT AND
THE MOST SENIOR OFFICIAL OF THE GOVERNMENTAL UNIT INVOLVED, WITH RESPECT
TO ANY INSURANCE COVERAGES PLACED FOR OR INSURANCE SERVICES RENDERED  TO
THE  STATE,  ITS  AGENCIES AND DEPARTMENTS, PUBLIC BENEFIT CORPORATIONS,
MUNICIPALITIES AND OTHER GOVERNMENTAL SUBDIVISIONS IN THIS STATE.
  (D) NO TITLE INSURANCE AGENT OR ITS SUB-LICENSEES, EMPLOYEES,  OR  ANY
OTHER  PERSON ACTING FOR OR ON ITS BEHALF, SHALL, EXCEPT AS PERMITTED IN
SECTION TWO THOUSAND THREE HUNDRED TWENTY-FOUR OF THIS CHAPTER: (1) MAKE
ANY REBATE OF ANY PORTION OF THE FEE, PREMIUM OR CHARGE MADE, OR (2) PAY
OR GIVE EITHER DIRECTLY OR INDIRECTLY, ANY COMMISSION, ANY PART  OF  ITS
FEES  OR  CHARGES,  OR  ANY OTHER CONSIDERATION OR VALUABLE THING, AS AN
INDUCEMENT FOR, OR AS COMPENSATION FOR, ANY TITLE INSURANCE BUSINESS  TO
ANY  APPLICANT FOR INSURANCE OR TO ANY PERSON ACTING AS AGENT, REPRESEN-
TATIVE, ATTORNEY, OR EMPLOYEE OF THE OWNER,  LESSEE,  MORTGAGEE  OR  THE
PROSPECTIVE  OWNER,  LESSEE,  OR MORTGAGEE OF THE REAL PROPERTY WHICH IS
THE SUBJECT OF A TITLE INSURANCE POLICY.
  (E) NOTHING IN THIS SECTION SHALL  BE  CONSTRUED  AS  PROHIBITING  THE
PAYMENT  TO  ANY  PERSON  OF  A  BONA FIDE SALARY, COMPENSATION OR OTHER
PAYMENT FOR GOODS OR FACILITIES ACTUALLY FURNISHED OR FOR SERVICES ACTU-
ALLY PERFORMED. SUCH PAYMENT SHALL NOT EXCEED THE REASONABLE AND CUSTOM-
ARY COMPENSATION FOR  THE  GOODS  OR  SERVICES  OR  FACILITIES  ACTUALLY
RENDERED OR FURNISHED.
  (F)  A  TITLE  INSURANCE AGENT SHALL NOT DIRECTLY OR INDIRECTLY ACCEPT
ANY PAYMENT FOR OR REIMBURSEMENT OF ANY FEE, FINE OR PENALTY IMPOSED  BY
THE  SUPERINTENDENT  ON THE TITLE INSURANCE AGENT PURSUANT TO THIS CHAP-
TER.
  S 2160. ACTING FOR OR AIDING UNLICENSED OR UNAUTHORIZED  TITLE  INSUR-
ANCE  CORPORATIONS.  NO  PERSON SHALL IN THIS STATE ACT AS AGENT FOR ANY
TITLE INSURANCE CORPORATION WHICH IS NOT LICENSED OR AUTHORIZED TO DO  A
TITLE INSURANCE BUSINESS IN THIS STATE, IN THE DOING OF ANY TITLE INSUR-
ANCE  BUSINESS IN THIS STATE OR IN SOLICITING, NEGOTIATING OR EFFECTUAT-
ING ANY TITLE INSURANCE, OR SHALL IN THIS STATE IN ANY  WAY  OR  MANNER,
EXCEPT  BY PROVIDING A TITLE SEARCH, AID ANY SUCH TITLE INSURANCE CORPO-
RATION IN EFFECTING ANY TITLE INSURANCE POLICY.
  S 2161. CONTROLLED BUSINESS. A TITLE INSURANCE AGENT SHALL  NOT  ALLOW
AN ORIGINATOR TO HOLD A FINANCIAL INTEREST IN SUCH TITLE INSURANCE AGENT
UNLESS  ALL  OF  THE  FOLLOWING  REQUIREMENTS ARE MET AT THE TIME OF THE
ACQUISITION OF SUCH FINANCIAL INTEREST AND AT ALL TIMES THEREAFTER:

A. 9388                            18

  (A) THE ORIGINATOR MAKING A REFERRAL OF TITLE INSURANCE  BUSINESS,  AT
OR  PRIOR TO THE TIME OF THE REFERRAL, DISCLOSES IN WRITING TO THE PARTY
BEING REFERRED:
  (1)  THAT  THE ORIGINATOR HAS A FINANCIAL INTEREST IN THE TITLE INSUR-
ANCE AGENT;
  (2) AN ESTIMATE OF THE COST OF THE SERVICES  OF  THE  TITLE  INSURANCE
AGENT, INCLUDING, WITHOUT LIMITATION, THE TITLE INSURANCE PREMIUMS;
  (3)  THAT  THE  PARTY  BEING REFERRED IS NOT REQUIRED TO USE THE TITLE
INSURANCE AGENT TO WHICH THE PARTY IS BEING REFERRED.
  (B) THE ORIGINATOR IS NOT THE SOLE SOURCE OF  BUSINESS  OF  THE  TITLE
INSURANCE AGENT.
  (C)  THE TITLE INSURANCE AGENT HAS SIGNIFICANT AND MULTIPLE SOURCES OF
BUSINESS.
  (D) ANY MONEY OR OTHER THING OF VALUE  PAID  BY  THE  TITLE  INSURANCE
AGENT  TO THE ORIGINATOR IS BASED ON THE ORIGINATOR'S FINANCIAL INTEREST
IN THE TITLE INSURANCE AGENT AND IS NOT RELATED TO  THE  AMOUNT  OF  THE
INSURANCE  BUSINESS SUCH ORIGINATOR REFERS TO THE TITLE INSURANCE AGENT,
PROVIDED, HOWEVER, THAT SUBSECTIONS (B) AND (C) OF  THIS  SECTION  SHALL
NOT  APPLY TO AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS STATE OR TO A
LAW FIRM LAWFULLY RENDERING LEGAL SERVICES IN THIS  STATE  ACTING  AS  A
TITLE  INSURANCE AGENT AS AN ADJUNCT TO THE ATTORNEY'S OR THE LAW FIRM'S
LAW PRACTICE WHO (1) REPRESENTS A CLIENT IN A REAL  ESTATE  TRANSACTION,
(2)  PERFORMS THE ACTS ENUMERATED IN PARAGRAPHS ONE, TWO, THREE AND FIVE
OF SUBSECTION (C) OF SECTION TWO THOUSAND ONE HUNDRED FIFTY-ONE OF  THIS
ARTICLE,  AND  (3)  WAS A TITLE INSURANCE AGENT ON THE DATE THIS SECTION
FIRST BECAME A LAW AND  FOR  AT  LEAST  THE  TWELVE  MONTHS  IMMEDIATELY
PRECEDING SUCH DATE.
  S  2162.  FIDUCIARY CAPACITY OF LICENSEES. (A) EVERY LICENSEE SHALL BE
RESPONSIBLE IN A FIDUCIARY CAPACITY FOR ALL FUNDS RECEIVED OR  COLLECTED
AS A TITLE INSURANCE AGENT AND SHALL NOT, WITHOUT THE EXPRESS CONSENT OF
HIS  OR  HER  OR ITS PRINCIPAL, MINGLE ANY SUCH FUNDS WITH HIS OR HER OR
ITS OWN FUNDS OR WITH FUNDS HELD BY HIM OR HER OR IT IN ANY OTHER CAPAC-
ITY.
  (B) THIS SECTION SHALL NOT REQUIRE ANY SUCH AGENT TO MAINTAIN A  SEPA-
RATE  BANK  DEPOSIT FOR THE FUNDS OF EACH SUCH PRINCIPAL, IF AND AS LONG
AS THE FUNDS SO HELD FOR EACH SUCH PRINCIPAL ARE REASONABLY  ASCERTAINA-
BLE FROM THE BOOKS OF ACCOUNT AND RECORDS OF SUCH AGENT.
  S  2163.  ADVERTISING  BY  LICENSEES. (A)(1) NO LICENSEE SHALL MAKE OR
ISSUE IN THIS STATE ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR, CARD OR
OTHER PUBLIC ANNOUNCEMENT PURPORTING TO MAKE KNOWN THE FINANCIAL  CONDI-
TION  OF  ANY TITLE INSURANCE CORPORATION, UNLESS THE SAME SHALL CONFORM
TO THE REQUIREMENTS OF SECTION ONE THOUSAND THREE  HUNDRED  THIRTEEN  OF
THIS CHAPTER.
  (2)  NO LICENSEE OR OTHER PERSON SHALL, BY ANY ADVERTISEMENT OR PUBLIC
ANNOUNCEMENT IN THIS STATE, CALL ATTENTION  TO  ANY  UNAUTHORIZED  TITLE
INSURANCE CORPORATION.
  (B) EVERY LICENSEE SHALL, IN ALL ADVERTISEMENTS, PUBLIC ANNOUNCEMENTS,
SIGNS,  PAMPHLETS, CIRCULARS AND CARDS, WHICH REFER TO A TITLE INSURANCE
CORPORATION, SET FORTH THEREIN THE NAME IN FULL OF THE  TITLE  INSURANCE
CORPORATION REFERRED TO.
  S  2164.  STAY  OR  SUSPENSION  OF SUPERINTENDENT'S DETERMINATION. THE
COMMENCEMENT OF A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT  OF  THE  CIVIL
PRACTICE  LAW  AND  RULES, TO REVIEW THE ACTION OF THE SUPERINTENDENT IN
SUSPENDING OR REVOKING OR REFUSING TO RENEW ANY LICENSE UNDER THIS ARTI-
CLE, SHALL STAY SUCH ACTION OF THE SUPERINTENDENT FOR A PERIOD OF THIRTY
DAYS. SUCH STAY SHALL NOT BE EXTENDED FOR A  LONGER  PERIOD  UNLESS  THE

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COURT  SHALL  DETERMINE, AFTER A PRELIMINARY HEARING OF WHICH THE SUPER-
INTENDENT IS NOTIFIED FORTY-EIGHT HOURS IN ADVANCE, THAT A STAY  OF  THE
SUPERINTENDENT'S ACTION PENDING THE FINAL DETERMINATION OR FURTHER ORDER
OF  THE  COURT WILL NOT UNDULY INJURE THE INTERESTS OF THE PEOPLE OF THE
STATE.
  S 2165. IMPERSONATION AT  EXAMINATIONS  PROHIBITED.  NO  PERSON  SHALL
IMPERSONATE  ANY  OTHER PERSON, OR PERMIT OR AID IN ANY MANNER ANY OTHER
PERSON TO IMPERSONATE HIM OR HER, IN  CONNECTION  WITH  ANY  EXAMINATION
HELD IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
  S  2166. CONTINUING EDUCATION. (A) THIS SECTION SHALL APPLY TO PERSONS
LICENSED PURSUANT TO THIS ARTICLE AND TO  INDIVIDUALS  DESIGNATED  AS  A
SUB-LICENSEE  TO  FULFILL  THE  CONTINUING EDUCATION REQUIREMENTS FOR AN
ENTITY LICENSED UNDER THIS ARTICLE.
  (B) THIS SECTION SHALL NOT APPLY TO:
  (1) AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS STATE;
  (2) ANY LICENSEES AS THE SUPERINTENDENT  MAY  EXEMPT  SUBJECT  TO  ANY
CONTINUING  EDUCATION REQUIREMENTS DEEMED APPROPRIATE BY THE SUPERINTEN-
DENT.
  (C) PERSONS LICENSED PURSUANT TO THIS ARTICLE  AND  NOT  EXEMPT  UNDER
THIS  ARTICLE,  SHALL BIENNIALLY SATISFACTORILY COMPLETE SUCH COURSES OR
PROGRAMS OF INSTRUCTION AS MAY BE APPROVED  BY  THE  SUPERINTENDENT,  AS
FOLLOWS:
  (1)  ANY  PERSON HOLDING A LICENSE ISSUED PURSUANT TO THIS ARTICLE AND
NOT EXEMPT UNDER SUBSECTION (B) OF THIS SECTION SHALL, DURING EACH  FULL
BIENNIAL  LICENSING  PERIOD, SATISFACTORILY COMPLETE COURSES OR PROGRAMS
OF INSTRUCTION OR ATTEND SEMINARS AS MAY BE APPROVED BY THE  SUPERINTEN-
DENT EQUIVALENT TO FIFTEEN CREDIT HOURS OF INSTRUCTION.
  (2)  EXCESS  CREDIT  HOURS  ACCUMULATED  DURING ANY BIENNIAL LICENSING
PERIOD SHALL NOT CARRY FORWARD TO THE NEXT BIENNIAL LICENSING PERIOD.
  (D)(1) THE COURSES OR PROGRAMS OF INSTRUCTION SUCCESSFULLY  COMPLETED,
WHICH SHALL BE DEEMED TO MEET THE SUPERINTENDENT'S STANDARDS FOR CONTIN-
UING  EDUCATION  REQUIREMENTS, SHALL BE COURSES, PROGRAMS OF INSTRUCTION
OR SEMINARS, APPROVED AS TO METHOD AND CONTENT  BY  THE  SUPERINTENDENT,
RELATED  TO TITLE INSURANCE, AND GIVEN BY A DEGREE CONFERRING COLLEGE OR
UNIVERSITY WHOSE CURRICULUM  IS  REGISTERED  WITH  THE  STATE  EDUCATION
DEPARTMENT  AT THE TIME THE PERSON TAKES THE COURSE, WHETHER SUCH COURSE
BE GIVEN AS PART OF SUCH CURRICULUM  OR  SEPARATELY,  OR  BY  ANY  OTHER
INSTITUTION,  AGENTS' ASSOCIATION, TRADE ASSOCIATION, BAR ASSOCIATION OR
TITLE INSURANCE CORPORATION, WHICH  MAINTAINS  EQUIVALENT  STANDARDS  OF
INSTRUCTION  AND  WHICH SHALL HAVE BEEN APPROVED FOR SUCH PURPOSE BY THE
SUPERINTENDENT.
  (2) THE NUMBER OF CREDIT HOURS ASSIGNED TO  EACH  OF  THE  COURSES  OR
PROGRAMS  OF  INSTRUCTION  SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION
SHALL BE DETERMINED BY THE SUPERINTENDENT.
  (E) A PERSON WHO TEACHES ANY APPROVED COURSE  OF  INSTRUCTION  OR  WHO
LECTURES  AT  ANY  APPROVED SEMINAR, AND WHO IS SUBJECT TO THIS SECTION,
SHALL BE GRANTED THE SAME NUMBER OF CREDIT HOURS AS WOULD BE GRANTED  TO
A  PERSON  TAKING  AND  SUCCESSFULLY  COMPLETING SUCH COURSE, SEMINAR OR
PROGRAM, PROVIDED THAT SUCH CREDIT HOURS SHALL BE CREDITED ONLY ONCE PER
APPROVED COURSE DURING ANY BIENNIAL LICENSING PERIOD.
  (F) EVERY PERSON SUBJECT TO THIS SECTION  SHALL  FURNISH,  IN  A  FORM
SATISFACTORY  TO  THE  SUPERINTENDENT,  CERTIFICATION  ATTESTING  TO THE
COURSE OR PROGRAMS OF INSTRUCTION TAKEN AND  SUCCESSFULLY  COMPLETED  BY
SUCH PERSON PURSUANT TO SUBSECTION (D) OF THIS SECTION.
  (G)(1)  ANY  PERSON  FAILING  TO MEET THE REQUIREMENTS IMPOSED BY THIS
SECTION SHALL NOT BE ELIGIBLE TO RENEW THE LICENSE.

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  (2) ANY PERSON WHOSE LICENSE WAS NOT RENEWED SHALL NOT BE ELIGIBLE  TO
BECOME  RELICENSED  DURING THE NEXT BIENNIAL LICENSING PERIOD UNTIL THAT
PERSON HAS DEMONSTRATED TO THE SATISFACTION OF THE  SUPERINTENDENT  THAT
CONTINUING EDUCATION REQUIREMENTS FOR THE LAST BIENNIAL LICENSING PERIOD
WERE MET.
  (3) ANY PERSON WHOSE LICENSE WAS NOT RENEWED PURSUANT TO PARAGRAPH ONE
OF  THIS  SUBSECTION,  WHO  ACCUMULATES  SUFFICIENT CREDIT HOURS FOR THE
PRIOR LICENSING PERIOD TO QUALIFY FOR RELICENSING IN THE BIENNIAL PERIOD
FOLLOWING SUCH NON-RENEWAL, MAY NOT APPLY THOSE SAME CREDIT HOURS TOWARD
THE CONTINUING EDUCATION REQUIREMENTS FOR THE CURRENT BIENNIAL LICENSING
PERIOD.
  (H)(1) ANY ENTITY ELIGIBLE TO PROVIDE COURSES,  PROGRAMS  OF  INSTRUC-
TION,  OR  SEMINARS  IN  ACCORDANCE WITH SUBSECTION (D) OF THIS SECTION,
MUST FILE FOR APPROVAL BY THE SUPERINTENDENT ON  A  BIENNIAL  BASIS,  TO
CONFORM  WITH  ITS AREA OF INSTRUCTION, A PROVIDER ORGANIZATION APPLICA-
TION AND A COURSE SUBMISSION APPLICATION FOR EACH  COURSE,  PROGRAM  AND
SEMINAR.
  (2)  THE  PROVIDER ORGANIZATION APPLICATION SHALL INCLUDE THE NAMES OF
ALL INSTRUCTORS TO BE USED DURING THE CONTRACT PERIOD,  AND  INSTRUCTORS
MAY  BE  ADDED  DURING  THE  PERIOD  BY NOTIFYING THE SUPERINTENDENT AND
PAYING THE APPROPRIATE FILING FEE.
  (3) THE COMPLETED APPLICATIONS SHALL BE RETURNED IN A  TIMELY  MANNER,
AS  SPECIFIED BY THE SUPERINTENDENT, WITH A NON-REFUNDABLE FILING FEE OF
TWO HUNDRED DOLLARS PER ORGANIZATION, FIFTY DOLLARS PER COURSE,  PROGRAM
AND SEMINAR, AND FIFTY DOLLARS PER INSTRUCTOR.
  (4)  APPROVAL  OF  THE  APPLICATION  SHALL BE AT THE DISCRETION OF THE
SUPERINTENDENT.
  (I) EACH LICENSEE SHALL PAY A BIENNIAL FEE OF TEN DOLLARS PER LICENSE,
FOR CONTINUING EDUCATION CERTIFICATE FILING AND  RECORDING  CHARGES,  TO
THE SUPERINTENDENT OR, AT THE DISCRETION OF THE SUPERINTENDENT, DIRECTLY
TO AN ORGANIZATION UNDER CONTRACT TO PROVIDE CONTINUING EDUCATION ADMIN-
ISTRATIVE SERVICES.
  S 2167. CHANGE OF ADDRESS.  A LICENSEE UNDER THIS ARTICLE SHALL INFORM
THE  SUPERINTENDENT  BY  A  MEANS  ACCEPTABLE TO THE SUPERINTENDENT OF A
CHANGE OF ADDRESS WITHIN THIRTY DAYS OF THE CHANGE.
  S 2168. ADMINISTRATION OF CERTAIN FUNCTIONS.  THE  SUPERINTENDENT  MAY
DESIGNATE  THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) OR
ANY AFFILIATES OR SUBSIDIARIES THAT THE NAIC OVERSEES TO PERFORM  MINIS-
TERIAL FUNCTIONS, INCLUDING THE COLLECTION OF FEES, RELATED TO LICENSING
UNDER THIS ARTICLE THAT THE SUPERINTENDENT MAY DEEM APPROPRIATE.
  S  2. Subsection (a) of section 107 of the insurance law is amended by
adding a new paragraph 54 to read as follows:
  (54) "TITLE INSURANCE AGENT" HAS THE MEANING ASCRIBED TO IT BY SECTION
TWO THOUSAND ONE HUNDRED FIFTY-ONE OF THIS CHAPTER.
  S 3. Subsection (b) of section 304 of the insurance law, as amended by
chapter 635 of the laws of 1996, is amended to read as follows:
  (b) The person conducting such hearing shall have power to  administer
oaths,  examine  and  cross-examine  witnesses  and  receive documentary
evidence, and shall report his OR HER findings, orally or in writing, to
the superintendent with or without  recommendation.    Such  report,  if
adopted  by  the  superintendent  or  by his OR HER authority may be the
basis of any determination made by the superintendent or by his  OR  HER
authority.  One hundred twenty days after the effective date of a deter-
mination of liability for a  civil  penalty  pursuant  to  section  four
hundred  three,  two  thousand  one  hundred  two [or], two thousand one
hundred thirty-three, TWO THOUSAND ONE HUNDRED FIFTY-SIX OR TWO THOUSAND

A. 9388                            21

ONE HUNDRED FIFTY-EIGHT of this chapter, such determination of liability
for a civil penalty may be entered as a judgment and  enforced,  without
court  proceedings,  in  the  same  manner as the enforcement of a money
judgment  in civil actions in any court of competent jurisdiction or any
other place provided for the entry of civil judgment within the state of
New York.
  S 4. Subsection (b) of section 305 of the insurance law is amended  to
read as follows:
  (b)  No  insurer,  insurance  agent,  TITLE INSURANCE AGENT, insurance
broker or other person subject to the provisions of this  chapter  whose
conduct,  condition or practices are being investigated, and no officer,
director or employee of any such person, shall be entitled to witness or
mileage fees.
  S 5. Subsection (b) of section 326 of the insurance law is amended  to
read as follows:
  (b) Except as provided in section two thousand one hundred twenty-four
AND  SECTION  TWO  THOUSAND  ONE HUNDRED SIXTY-FOUR of this chapter, the
commencement of such proceeding shall  not  affect  the  enforcement  or
validity  of  the  superintendent's  order, regulation or decision under
review unless the court shall determine, after a preliminary hearing  of
which  the  superintendent  is  notified  at  least forty-eight hours in
advance, that a stay of enforcement  pending  the  proceeding  or  until
further  direction  of the court will not unduly injure the interests of
the people of the state, in which case a stay of execution may be grant-
ed.
  S 6. Subsection (a) of section 327 of the insurance law is amended  to
read as follows:
  (a)  The superintendent may maintain and prosecute, in the name of the
people of the state, an action against any insurer, its officers, direc-
tors, trustees or agents OR AGAINST ANY PERSON UNLAWFULLY  ACTING  AS  A
TITLE  INSURANCE  AGENT or against any broker or adjuster or against any
other person subject to the provisions of this chapter, for the  purpose
of obtaining an injunction restraining such person or persons from doing
any acts in violation of the provisions of this chapter.
  S  7.  Subsections  (a)  and (b) of section 2324 of the insurance law,
subsection (a) as amended by chapter  482  of  the  laws  of  2000,  are
amended to read as follows:
  (a)  No  authorized  insurer, no licensed insurance agent, NO LICENSED
TITLE INSURANCE AGENT, no licensed insurance broker, and no employee  or
other  representative  of  any such insurer, agent or broker shall make,
procure or negotiate any contract of insurance  other  than  as  plainly
expressed in the policy or other written contract issued or to be issued
as evidence thereof, or shall directly or indirectly, by giving or shar-
ing  a  commission or in any manner whatsoever, pay or allow or offer to
pay or allow to the insured or to any employee of the insured, either as
an inducement to the making of insurance or  after  insurance  has  been
effected,  any rebate from the premium which is specified in the policy,
or any special favor or advantage in the dividends or other  benefit  to
accrue  thereon,  or  shall give or offer to give any valuable consider-
ation or inducement of any kind, directly or indirectly,  which  is  not
specified in such policy or contract, other than any article of merchan-
dise  not  exceeding fifteen dollars in value which shall have conspicu-
ously stamped or printed thereon the advertisement of the insurer, agent
or broker, or shall give, sell or purchase, or offer to  give,  sell  or
purchase,  as  an  inducement  to  the  making  of  such insurance or in
connection therewith, any stock, bond or other securities or  any  divi-

A. 9388                            22

dends  or  profits  accrued  thereon,  nor shall the insured, his OR HER
agent or representative knowingly receive directly  or  indirectly,  any
such rebate or special favor or advantage, provided, however, a licensed
insurance  agent,  A LICENSED TITLE INSURANCE AGENT or a licensed insur-
ance broker may retain the  usual  commission  or  underwriting  fee  on
insurance  placed  on his OR HER own property or risks, if the aggregate
of such commissions or underwriting fees will not exceed five percent of
the total net commissions or underwriting fees received by such licensed
insurance agent, LICENSED TITLE  INSURANCE  AGENT  or  insurance  broker
during the calendar year.
  (b) Within the meaning of subsection (a) [hereof] OF THIS SECTION, the
sharing  of a commission with the insured shall be deemed to include any
case in which a licensed insurance agent, LICENSED TITLE INSURANCE AGENT
or a licensed insurance broker which is a subsidiary corporation of,  or
a corporation affiliated with, any corporation insured, received commis-
sions  for  the  negotiation or procurement of any policy or contract of
insurance for the insured.
  S 8. This act shall take effect immediately;  provided  that  sections
one  through seven of this act shall take effect July 1, 2010; provided,
further, that subsections (a) and (b) of section 2152 of  the  insurance
law,  as  added by section one of this act, shall take effect January 1,
2011; provided, however, that the superintendent of insurance is author-
ized to promulgate such rules and regulations and take any  other  meas-
ures  as  may be necessary for the timely implementation of sections one
through seven of this act.