EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0293*
SENATE BILL 293
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By: Senator Beidle
Introduced and read first time: January 19, 2022
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Insurance – Title Insurance Producers – Annual Review 2
FOR the purpose of authorizing a title insurer to conduct a required annual review of a title 3
insurance producer in person, remotely by using mail, overnight delivery, or 4
electronic means, or by a combination of in–person and remote methods; and 5
generally relating to title insurance and the annual review of title insurance 6
producers. 7
BY repealing and reenacting, with amendments, 8
Article – Insurance 9
Section 10–121(k) 10
Annotated Code of Maryland 11
(2017 Replacement Volume and 2021 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Insurance 15
10–121. 16
(k) (1) (i) Except as provided in paragraph (5) of this subsection, the title 17
insurer shall during each calendar year conduct an [on–site] ANNUAL review of the 18
underwriting, claims, and escrow practices of each title insurance producer appointed by 19
the insurer as a principal agent as designated in the title insurance agency contract 20
between the insurer and the producer. 21
(ii) The [on–site] ANNUAL review shall include a review of the title 22
insurance producer’s or agency’s policy [blank inventory] ISSUING and processing 23
operations. 24 2 SENATE BILL 293
(III) THE ANNUAL REVIEW MAY BE CONDUCTED : 1
1. AT THE PLACE OF BUSI NESS OF THE TITLE 2
INSURANCE PRODUCER ; 3
2. REMOTELY BY USING MA IL, OVERNIGHT DELIVERY , 4
OR ELECTRONIC MEANS ; OR 5
3. USING ANY COMBINATIO N OF ITEMS 1 AND 2 OF THIS 6
SUBPARAGRAPH . 7
[(iii)] (IV) If the title insurance producer or agency does not maintain 8
separate bank or trust accounts for each title insurer it represents, the title insurer shall 9
verify that the funds held on its behalf are reasonably ascertainable from the books of 10
account and records of the title insurance producer or agency. 11
[(iv)] (V) Subject to the requirement under paragraph (3) of this 12
subsection to report suspected violations that the title insurer has reasonable cause to 13
believe have occurred, if the title insurance producer or title agency holds an appointment 14
with more than one title insurer, the title insurer may limit its review to files, separately 15
held accounts, and written documentation relating to its title insurance policies. 16
(2) A written report setting forth the results of the [on–site] ANNUAL 17
review shall be prepared by the title insurer and is subject to examination under § 2–205 18
of this article. 19
(3) If, as a result of the [examination] ANNUAL REVIEW , a title insurer 20
has reasonable cause to believe that a title insurance producer or agency has engaged in 21
any of the prohibited activities set forth in § 10–126 of this subtitle, the title insurer shall 22
report in writing the suspected violation to the Commissioner [and submit a copy of the 23
examination] IN THE REPORT PREPARED UNDE R PARAGRAPH (2) OF THIS 24
SUBSECTION . 25
(4) The [examination] ANNUAL REVIEW required under this section is in 26
addition to any examination conducted by the Commissioner to determine compliance with 27
the accounts maintained for the benefit of the Maryland Affordable Housing Trust under § 28
22–105 of this article. 29
(5) The title insurer is not required to perform the [on–site] ANNUAL 30
review of a title insurance producer for the calendar year during which the title insurance 31
producer is initially appointed if the appointment is made on or after June 30 of that 32
calendar year. 33
SENATE BILL 293 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2022. 2