Amended IN Assembly March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 762Introduced by Assembly Member WaldronFebruary 15, 2017 An act to amend Section 12340.1 12370 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 762, as amended, Waldron. Title insurance. insurers: finances and investments.Existing law defines title insurance as insuring, guaranteeing, or indemnifying an owner of real or personal property or the holder of liens or encumbrances or others who have interests in the property against loss or damage due to liens, encumbrances, or defects in the title to the insured property, defects in liens or encumbrances, or defects in title searches. Existing law requires every title insurer to annually set apart a sum equal to 10% of its premiums collected during the year. Those sums are required to be allowed to accumulate until a fund is created equal to 25% of the aggregate of the subscribed capital stock of the insurer, or $1,000,000, whichever is the lower amount. The fund is known as the title surplus fund.This bill would make technical, nonsubstantive changes to those provisions.This bill would increase the annual sum required to be set apart by the title insurer to 12% of its premiums collected during the year and would provide that the monetary amount required to be allowed to accumulate in the title surplus fund, as provided, be increased to $1,250,000.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 12370 of the Insurance Code is amended to read:12370. (a) Every title insurer shall annually set apart a sum equal to 10 12 percent of its premiums collected during the year. Such Those sums shall be allowed to accumulate until a fund is created equal in amount to 25 percent of the aggregate of the subscribed capital stock of the insurer, or one million dollars ($1,000,000), one million two hundred fifty thousand dollars ($1,250,000), whichever is the lower amount. After(b) After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such 12380), that amount shall be reduced by the aggregate amount which shall be that is set aside and maintained by such that insurer in such an unearned premium reserve. Such That fund shall be known as the title insurance surplus fund.SECTION 1.Section 12340.1 of the Insurance Code is amended to read:12340.1.Title insurance means insuring, guaranteeing, or indemnifying owners of real or personal property or the holders of liens or encumbrances thereon or others interested therein against loss or damage suffered by reason of the following:(a)Liens or encumbrances on, or defects in, the title to the property.(b)Invalidity or unenforceability of any liens or encumbrances on the property.(c)Incorrectness of searches relating to the title to real or personal property.
Amended IN Assembly March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 762Introduced by Assembly Member WaldronFebruary 15, 2017 An act to amend Section 12340.1 12370 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 762, as amended, Waldron. Title insurance. insurers: finances and investments.Existing law defines title insurance as insuring, guaranteeing, or indemnifying an owner of real or personal property or the holder of liens or encumbrances or others who have interests in the property against loss or damage due to liens, encumbrances, or defects in the title to the insured property, defects in liens or encumbrances, or defects in title searches. Existing law requires every title insurer to annually set apart a sum equal to 10% of its premiums collected during the year. Those sums are required to be allowed to accumulate until a fund is created equal to 25% of the aggregate of the subscribed capital stock of the insurer, or $1,000,000, whichever is the lower amount. The fund is known as the title surplus fund.This bill would make technical, nonsubstantive changes to those provisions.This bill would increase the annual sum required to be set apart by the title insurer to 12% of its premiums collected during the year and would provide that the monetary amount required to be allowed to accumulate in the title surplus fund, as provided, be increased to $1,250,000.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Amended IN Assembly March 23, 2017
Amended IN Assembly March 23, 2017
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 762
Introduced by Assembly Member WaldronFebruary 15, 2017
Introduced by Assembly Member Waldron
February 15, 2017
An act to amend Section 12340.1 12370 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 762, as amended, Waldron. Title insurance. insurers: finances and investments.
Existing law defines title insurance as insuring, guaranteeing, or indemnifying an owner of real or personal property or the holder of liens or encumbrances or others who have interests in the property against loss or damage due to liens, encumbrances, or defects in the title to the insured property, defects in liens or encumbrances, or defects in title searches. Existing law requires every title insurer to annually set apart a sum equal to 10% of its premiums collected during the year. Those sums are required to be allowed to accumulate until a fund is created equal to 25% of the aggregate of the subscribed capital stock of the insurer, or $1,000,000, whichever is the lower amount. The fund is known as the title surplus fund.This bill would make technical, nonsubstantive changes to those provisions.This bill would increase the annual sum required to be set apart by the title insurer to 12% of its premiums collected during the year and would provide that the monetary amount required to be allowed to accumulate in the title surplus fund, as provided, be increased to $1,250,000.
Existing law defines title insurance as insuring, guaranteeing, or indemnifying an owner of real or personal property or the holder of liens or encumbrances or others who have interests in the property against loss or damage due to liens, encumbrances, or defects in the title to the insured property, defects in liens or encumbrances, or defects in title searches. Existing law requires every title insurer to annually set apart a sum equal to 10% of its premiums collected during the year. Those sums are required to be allowed to accumulate until a fund is created equal to 25% of the aggregate of the subscribed capital stock of the insurer, or $1,000,000, whichever is the lower amount. The fund is known as the title surplus fund.
This bill would make technical, nonsubstantive changes to those provisions.
This bill would increase the annual sum required to be set apart by the title insurer to 12% of its premiums collected during the year and would provide that the monetary amount required to be allowed to accumulate in the title surplus fund, as provided, be increased to $1,250,000.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 12370 of the Insurance Code is amended to read:12370. (a) Every title insurer shall annually set apart a sum equal to 10 12 percent of its premiums collected during the year. Such Those sums shall be allowed to accumulate until a fund is created equal in amount to 25 percent of the aggregate of the subscribed capital stock of the insurer, or one million dollars ($1,000,000), one million two hundred fifty thousand dollars ($1,250,000), whichever is the lower amount. After(b) After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such 12380), that amount shall be reduced by the aggregate amount which shall be that is set aside and maintained by such that insurer in such an unearned premium reserve. Such That fund shall be known as the title insurance surplus fund.SECTION 1.Section 12340.1 of the Insurance Code is amended to read:12340.1.Title insurance means insuring, guaranteeing, or indemnifying owners of real or personal property or the holders of liens or encumbrances thereon or others interested therein against loss or damage suffered by reason of the following:(a)Liens or encumbrances on, or defects in, the title to the property.(b)Invalidity or unenforceability of any liens or encumbrances on the property.(c)Incorrectness of searches relating to the title to real or personal property.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 12370 of the Insurance Code is amended to read:12370. (a) Every title insurer shall annually set apart a sum equal to 10 12 percent of its premiums collected during the year. Such Those sums shall be allowed to accumulate until a fund is created equal in amount to 25 percent of the aggregate of the subscribed capital stock of the insurer, or one million dollars ($1,000,000), one million two hundred fifty thousand dollars ($1,250,000), whichever is the lower amount. After(b) After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such 12380), that amount shall be reduced by the aggregate amount which shall be that is set aside and maintained by such that insurer in such an unearned premium reserve. Such That fund shall be known as the title insurance surplus fund.
SECTION 1. Section 12370 of the Insurance Code is amended to read:
### SECTION 1.
12370. (a) Every title insurer shall annually set apart a sum equal to 10 12 percent of its premiums collected during the year. Such Those sums shall be allowed to accumulate until a fund is created equal in amount to 25 percent of the aggregate of the subscribed capital stock of the insurer, or one million dollars ($1,000,000), one million two hundred fifty thousand dollars ($1,250,000), whichever is the lower amount. After(b) After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such 12380), that amount shall be reduced by the aggregate amount which shall be that is set aside and maintained by such that insurer in such an unearned premium reserve. Such That fund shall be known as the title insurance surplus fund.
12370. (a) Every title insurer shall annually set apart a sum equal to 10 12 percent of its premiums collected during the year. Such Those sums shall be allowed to accumulate until a fund is created equal in amount to 25 percent of the aggregate of the subscribed capital stock of the insurer, or one million dollars ($1,000,000), one million two hundred fifty thousand dollars ($1,250,000), whichever is the lower amount. After(b) After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such 12380), that amount shall be reduced by the aggregate amount which shall be that is set aside and maintained by such that insurer in such an unearned premium reserve. Such That fund shall be known as the title insurance surplus fund.
12370. (a) Every title insurer shall annually set apart a sum equal to 10 12 percent of its premiums collected during the year. Such Those sums shall be allowed to accumulate until a fund is created equal in amount to 25 percent of the aggregate of the subscribed capital stock of the insurer, or one million dollars ($1,000,000), one million two hundred fifty thousand dollars ($1,250,000), whichever is the lower amount. After(b) After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such 12380), that amount shall be reduced by the aggregate amount which shall be that is set aside and maintained by such that insurer in such an unearned premium reserve. Such That fund shall be known as the title insurance surplus fund.
12370. (a) Every title insurer shall annually set apart a sum equal to 10 12 percent of its premiums collected during the year. Such Those sums shall be allowed to accumulate until a fund is created equal in amount to 25 percent of the aggregate of the subscribed capital stock of the insurer, or one million dollars ($1,000,000), one million two hundred fifty thousand dollars ($1,250,000), whichever is the lower amount. After
(b) After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such 12380), that amount shall be reduced by the aggregate amount which shall be that is set aside and maintained by such that insurer in such an unearned premium reserve. Such That fund shall be known as the title insurance surplus fund.
Title insurance means insuring, guaranteeing, or indemnifying owners of real or personal property or the holders of liens or encumbrances thereon or others interested therein against loss or damage suffered by reason of the following:
(a)Liens or encumbrances on, or defects in, the title to the property.
(b)Invalidity or unenforceability of any liens or encumbrances on the property.
(c)Incorrectness of searches relating to the title to real or personal property.