EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0293*
SENATE BILL 293
C4 2lr1363
CF HB 637
By: Senator Beidle
Introduced and read first time: January 19, 2022
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 12, 2022
CHAPTER ______
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 2 SENATE BILL 293
the insurer as a principal agent as designated in the title insurance agency contract 1
between the insurer and the producer. 2
(ii) The [on–site] ANNUAL review shall include a review of the title 3
insurance producer’s or agency’s policy [blank inventory] ISSUING and processing 4
operations. 5
(III) THE ANNUAL REVIEW MAY BE CONDUCTED : 6
1. AT THE PLACE OF BUSI NESS OF THE TITLE 7
INSURANCE PRODUCER ; 8
2. REMOTELY BY USING MA IL, OVERNIGHT DELIVERY , 9
OR ELECTRONIC MEANS ; OR 10
3. USING ANY COMBINATIO N OF ITEMS 1 AND 2 OF THIS 11
SUBPARAGRAPH . 12
[(iii)] (IV) If the title insurance producer or agency does not maintain 13
separate bank or trust accounts for each title insurer it represents, the title insurer shall 14
verify that the funds held on its behalf are reasonably ascertainable from the books of 15
account and records of the title insurance producer or agency. 16
[(iv)] (V) Subject to the requirement under paragraph (3) of this 17
subsection to report suspected violations that the title insurer has reasonable cause to 18
believe have occurred, if the title insurance producer or title agency holds an appointment 19
with more than one title insurer, the title insurer may limit its review to files, separately 20
held accounts, and written documentation relating to its title insurance policies. 21
(2) A written report setting forth the results of the [on–site] ANNUAL 22
review shall be prepared by the title insurer and is subject to examination under § 2–205 23
of this article. 24
(3) If, as a result of the [examination] ANNUAL REVIEW , a title insurer 25
has reasonable cause to believe that a title insurance producer or agency has engaged in 26
any of the prohibited activities set forth in § 10–126 of this subtitle, the title insurer shall 27
report in writing the suspected violation to the Commissioner [and submit a copy of the 28
examination] IN THE REPORT PREPAR ED UNDER PARAGRAPH (2) OF THIS 29
SUBSECTION IN A FORM AND FORMAT CREATED BY THE COMMISSIONER . 30
(4) The [examination] ANNUAL REVIEW required under this section is in 31
addition to any examination conducted by the Commissioner to determine compliance with 32
the accounts maintained for the benefit of the Maryland Affordable Housing Trust under § 33
22–105 of this article. 34
SENATE BILL 293 3
(5) The title insurer is not required to perform the [on–site] ANNUAL 1
review of a title insurance producer for the calendar year during which the title insurance 2
producer is initially appointed if the appointment is made on or after June 30 of that 3
calendar year. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take ef fect 5
October 1, 2022. 6
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.