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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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| Jan 04, 2012 |
referred to insurance |
| Mar 23, 2011 |
referred to insurance |
Senate Bill S4203
2011-2012 Legislative Session
Provides for the licensing of agents of title insurance companies
download bill text pdfSponsored By
(R, C, IP, RFM) Senate District
Archive: Last Bill Status - In Senate Committee Insurance Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
co-Sponsors
(R, C) 7th Senate District
2011-S4203 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A6458
- Current Committee:
- Senate Insurance
- Law Section:
- Insurance Law
- Laws Affected:
- Add Art 21-A §§2151 - 2168, amd §§107, 304, 305, 326, 327 & 2324, Ins L
- Versions Introduced in Other Legislative Sessions:
-
2009-2010:
S5815, A9388, A6086
2013-2014: A189
2015-2016: A5894
2011-S4203 (ACTIVE) - Summary
Provides for the licensing of agents of title insurance companies; establishes 2 year terms; provides that superintendent may refuse to renew, revoke or suspend any license issued and may collect up to $500 for each violation or offense not exceeding $2500 in the aggregate.
2011-S4203 (ACTIVE) - Sponsor Memo
BILL NUMBER:S4203
TITLE OF BILL:
An act
to amend the insurance law, in relation to licensing of agents of title
insurance corporations
PURPOSE:
To require persons acting as title agents in this state to
obtain a license from the state insurance department and to adhere to
the requirements of the insurance law in the conduct of their
businesses as title agents.
SUMMARY OF PROVISIONS:
Section one adds a new article 21-A to the
insurance law to license title insurance agents and to govern their
activities under such license.
Sections two through seven of the bill add a definition of title
insurance agent to section 107 of the insurance law and make sections
304(b), 305(b), 326(b), 327(a) and 2324(a) and (b) of the insurance
law applicable to title insurance agents.
JUSTIFICATION:
New York State is a state that permits business
entities, not licensed as an attorney, to act as title insurance
agents but does not regulate and license these agents. The proposed bill is intended to bring non-attorney title insurance agents under a licensing statute and the direct supervision of the New York State Superintendent of Insurance Title insurance agents handle large amounts of money on a daily basis. Title agents collect and remit premiums, hold and manage indemnity escrow accounts, mortgage and transfer taxes and, on occasion, hold and disburse closing proceeds. It is essential for the protection of the public that the Insurance Law establish minimum standards of education and technical proficiency as well as general rules for the conduct of the title insurance agency business for all persons acting as title insurance agents. The proposed bill imposes monetary and other penalties, including suspension and revocation of an agent's license, for violations of the Insurance Law. LEGISLATIVE HISTORY: S.5815 of 2009-10; S,877-A of 2007-08; S.8132 of 2006 FISCAL IMPLICATIONS: The costs incurred by the state insurance department in licensing and regulating title insurance agents will be offset by licensing fees to be paid by applicants for such licenses and for renewals thereof EFFECTIVE DATE: Immediately; provided that sections one through seven of the bill shall take effect July 1, 2012, except that subsections (a) and (b) of section 2152 of the insurance law, as added by section 1 of the bill, shall take effect on January 1, 2013.
2011-S4203 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
4203
2011-2012 Regular Sessions
I N S E N A T E
March 23, 2011
___________
Introduced by Sen. SEWARD -- read twice and ordered printed, and when
printed to be committed 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.
2165. IMPERSONATION AT EXAMINATIONS PROHIBITED.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10078-01-1
S. 4203 2
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.
(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.
S. 4203 3
(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.
(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
S. 4203 4
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
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
S. 4203 5
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
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
S. 4203 6
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.
(B) ALL CERTIFICATES OF APPOINTMENT HAVE BEEN TERMINATED BY THE TITLE
INSURANCE CORPORATIONS, AT WHICH TIME THE LICENSE BECOMES INACTIVE.
S. 4203 7
(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.
(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
S. 4203 8
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;
(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
S. 4203 9
(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.
(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.
S. 4203 10
(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;
(C) DEMONSTRATED UNTRUSTWORTHINESS; OR
(D) DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT OF BUSINESS
IN THIS STATE OR ELSEWHERE;
S. 4203 11
(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
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-
S. 4203 12
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-
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
S. 4203 13
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
OVER-THE-COUNTER MARKET OR UPON ANY NATIONAL OR REGIONAL SECURITIES
EXCHANGE.
S. 4203 14
(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
TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY, FILE WITH THE SUPER-
INTENDENT WITHIN THIRTY DAYS A STATEMENT, IN SUCH FORM AS THE SUPER-
S. 4203 15
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
WRITING BY AN OFFICER OR AUTHORIZED REPRESENTATIVE OF THE TITLE INSUR-
ANCE CORPORATION TERMINATING THE RELATIONSHIP.
S. 4203 16
(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
AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, SHALL PAY ANY COMMISSION
OR OTHER COMPENSATION TO ANY PERSON FOR ACTING AS A TITLE INSURANCE
S. 4203 17
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) 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:
S. 4203 18
(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
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
S. 4203 19
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.
(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
S. 4203 20
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
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
S. 4203 21
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-
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
S. 4203 22
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, 2012; 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,
2013; 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.
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