Suspends certain provisions of law relative to on-site audits of title insurance producers. (Item #25)
The suspension of R.S. 22:526(A) alters the existing requirement that title insurers conduct on-site audits of title insurance producers at least once every three years. Instead of in-person evaluations of escrow accounts and underwriting practices, the resolution permits these audits to occur via remote means, which can still ensure thoroughness and integrity. This change is set to remain in effect until the sixtieth day after the final adjournment of the 2021 Regular Legislative Session.
SCR26, introduced by Senator Talbot, is a Senate Concurrent Resolution that suspends certain provisions of Louisiana law regarding the requirement for on-site audits of title insurance producers. The resolution acknowledges that the current public health emergency due to COVID-19 has necessitated social distancing measures, which impact traditional auditing practices. By allowing audits to be conducted remotely, the bill aims to adapt to the changing circumstances while maintaining oversight of title insurance practices.
Discussions surrounding SCR26 highlighted a necessity for flexibility in regulatory practices amid the ongoing public health concerns. While the resolution was crafted in response to the pandemic, the sentiment suggests a general understanding among legislators of the need to adapt existing laws to the current health landscape. Many see the bill as a pragmatic approach to maintaining oversight without compromising health and safety guidelines.
Although SCR26 has generally received positive support due to its timely response to legislative adjustments needed during the pandemic, there may be concerns about the integrity of remote audits compared to traditional on-site inspections. Some stakeholders may worry about the potential loss of thoroughness or oversight when audits can be conducted remotely, raising questions about the efficacy of monitoring title insurance producers during this temporary suspension.