HLS 21RS-305 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 65
BY REPRESENTATIVE ECHOLS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE: Provides relative to mandatory audits of title insurance producers by title
insurers
1 AN ACT
2To amend and reenact R.S. 22:526, relative to mandatory audits of title insurance producers
3 by title insurers; to provide for periodic audits; to provide for audit requirements; to
4 make technical changes; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 22:526 is hereby amended and reenacted to read as follows:
7 ยง526. Title insurer; audit
8 A. The title insurer shall, at least once every three years, conduct an on-site
9 audit of the escrow and settlement practices, escrow accounts, security arrangements,
10 files, underwriting and claims practices, and policy inventory of the producer. If the
11 title insurance producer fails to maintain separate escrow or trust accounts for each
12 title insurer it represents, the title insurer shall verify that the funds related to
13 closings in which the title insurer's policies are issued are reasonably ascertainable
14 from the books of account and records of the title insurance producer.
15 B. The department commissioner may promulgate regulations setting forth
16 the standards of audit and the form of audit required. The department commissioner
17 may also require the title insurer to provide a copy of its audit reports to the
18 department.
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 65
HLS 21RS-305 ENGROSSED
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 65 Engrossed 2021 Regular Session Echols
Abstract: Provides relative to mandatory audits of title insurance producers by title insurers.
Present law provides that title insurers shall, at least once every three years, conduct an on-
site audit of the escrow and settlement practices, escrow accounts, security arrangements,
files, underwriting and claims practices, and policy inventory of the producer.
Proposed law retains present law except the requirement that such audits be conducted on-
site.
Present law provides that the department may set forth the standards and the form of periodic
title insurer audits.
Proposed law specifies that authority to set forth the standards and the form of periodic title
insurer audits rests with the commissioner of insurance.
Present law provides that the department may require title insurers to provide a copy of their
audit reports to the department.
Proposed law specifies that authority to require title insurers to provide a copy of their audit
reports to the department rests with the commissioner of insurance.
(Amends R.S. 22:526)
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.