Maryland 2022 Regular Session

Maryland Senate Bill SB293 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	LAWRENCE J. HOGAN, JR., Governor Ch. 701
2	1
3		-	– 1 –
4		-	Chapter 701
5		-	(Senate Bill 293)
6	2
7		-	AN ACT concerning
	3	+	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
	4	+	[Brackets] indicate matter deleted from existing law.
	5	+	Underlining indicates amendments to bill.
	6	+	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
	7	+	amendment.
	8	+	sb0293
8	9
9		-	Insurance – Title Insurance Producers – Annual Review
	10	+	SENATE BILL 293
	11	+	C4 2lr1363
	12	+	CF HB 637
	13	+	By: Senator Beidle
	14	+	Introduced and read first time: January 19, 2022
	15	+	Assigned to: Finance
	16	+	Committee Report: Favorable with amendments
	17	+	Senate action: Adopted
	18	+	Read second time: February 12, 2022
10	19
11		-	FOR the purpose of authorizing a title insurer to conduct a required annual review of a title
12		-	insurance producer in person, remotely by using mail, overnight delivery, or
13		-	electronic means, or by a combination of in–person and remote methods; and
14		-	generally relating to title insurance and the annual review of title insurance
15		-	producers.
	20	+	CHAPTER ______
16	21
17		-	BY repealing and reenacting, with amendments,
18		-	Article – Insurance
19		-	Section 10–121(k)
20		-	Annotated Code of Maryland
21		-	(2017 Replacement Volume and 2021 Supplement)
	22	+	AN ACT concerning 1
22	23
23		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
24		-	That the Laws of Maryland read as follows:
	24	+	Insurance – Title Insurance Producers – Annual Review 2
25	25
26		-	Article – Insurance
	26	+	FOR the purpose of authorizing a title insurer to conduct a required annual review of a title 3
	27	+	insurance producer in person, remotely by using mail, overnight delivery, or 4
	28	+	electronic means, or by a combination of in–person and remote methods; and 5
	29	+	generally relating to title insurance and the annual review of title insurance 6
	30	+	producers. 7
27	31
28		-	10–121.
	32	+	BY repealing and reenacting, with amendments, 8
	33	+	Article – Insurance 9
	34	+	Section 10–121(k) 10
	35	+	Annotated Code of Maryland 11
	36	+	(2017 Replacement Volume and 2021 Supplement) 12
29	37
30		-	(k) (1) (i) Except as provided in paragraph (5) of this subsection, the title
31		-	insurer shall during each calendar year conduct an [on–site] ANNUAL review of the
32		-	underwriting, claims, and escrow practices of each title insurance producer appointed by
33		-	the insurer as a principal agent as designated in the title insurance agency contract
34		-	between the insurer and the producer.
	38	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
	39	+	That the Laws of Maryland read as follows: 14
35	40
36		-	(ii) The [on–site] ANNUAL review shall include a review of the title
37		-	insurance producer’s or agency’s policy [blank inventory] ISSUING and processing
38		-	operations.
	41	+	Article – Insurance 15
39	42
40		-	~~(III) THE ANNUAL REVIEW MAY BE CONDUCTED :~~
	43	+	10–121. 16
41	44
42		-	1. AT THE PLACE OF BUSI NESS OF THE TITLE
43		-	INSURANCE PRODUCER ;
	45	+	(k) (1) (i) Except as provided in paragraph (5) of this subsection, the title 17
	46	+	insurer shall during each calendar year conduct an [on–site] ANNUAL review of the 18
	47	+	underwriting, claims, and escrow practices of each title insurance producer appointed by 19 2 SENATE BILL 293
44	48
45		-	2. REMOTELY BY USING MA IL, OVERNIGHT DELIVERY ,
46		-	OR ELECTRONIC MEANS ; OR
47		-	Ch. 701 2022 LAWS OF MARYLAND
48	49
49		-	– 2 –
50		-	3. USING ANY COMBINATIO N OF ITEMS 1 AND 2 OF THIS
51		-	SUBPARAGRAPH .
	50	+	the insurer as a principal agent as designated in the title insurance agency contract 1
	51	+	between the insurer and the producer. 2
52	52
53		-	[(iii)] (IV) If the title insurance producer or agency does not maintain
54		-	separate bank or trust accounts for each title insurer it represents, the title insurer shall
55		-	verify that the funds held on its behalf are reasonably ascertainable from the books of
56		-	account and records of the title insurance producer or agency.
	53	+	(ii) The [on–site] ANNUAL review shall include a review of the title 3
	54	+	insurance producer’s or agency’s policy [blank inventory] ISSUING and processing 4
	55	+	operations. 5
57	56
58		-	[(iv)] (V) Subject to the requirement under paragraph (3) of this
59		-	subsection to report suspected violations that the title insurer has reasonable cause to
60		-	believe have occurred, if the title insurance producer or title agency holds an appointment
61		-	with more than one title insurer, the title insurer may limit its review to files, separately
62		-	held accounts, and written documentation relating to its title insurance policies.
	57	+	(III) THE ANNUAL REVIEW MAY BE CONDUCTED : 6
63	58
64		-	(2) A written report setting forth the results of the [on–site] ANNUAL
65		-	review shall be prepared by the title insurer and is subject to examination under § 2–205
66		-	of this article.
	59	+	1. AT THE PLACE OF BUSI NESS OF THE TITLE 7
	60	+	INSURANCE PRODUCER ; 8
67	61
68		-	(3) If, as a result of the [examination] ANNUAL REVIEW , a title insurer
69		-	has reasonable cause to believe that a title insurance producer or agency has engaged in
70		-	any of the prohibited activities set forth in § 10–126 of this subtitle, the title insurer shall
71		-	report in writing the suspected violation to the Commissioner [and submit a copy of the
72		-	examination] IN THE REPORT PREPAR ED UNDER PARAGRAPH (2) OF THIS
73		-	SUBSECTION IN A FORM AND FORMAT CREATED BY THE COMMISSIONER .
	62	+	2. REMOTELY BY USING MA IL, OVERNIGHT DELIVERY , 9
	63	+	OR ELECTRONIC MEANS ; OR 10
74	64
75		-	(4) The [examination] ANNUAL REVIEW required under this section is in
76		-	addition to any examination conducted by the Commissioner to determine compliance with
77		-	the accounts maintained for the benefit of the Maryland Affordable Housing Trust under §
78		-	22–105 of this article.
	65	+	3. USING ANY COMBINATIO N OF ITEMS 1 AND 2 OF THIS 11
	66	+	SUBPARAGRAPH . 12
79	67
80		-	(5) The title ~~insurer is~~ not ~~required to perform the [on–site] ANNUAL~~
81		-	~~review of a~~ title ~~insurance producer for the calendar year during which~~ the title ~~insurance~~
82		-	~~producer is initially appointed if~~ the ~~appointment is made~~ on ~~or after June 30~~ of ~~that~~
83		-	~~calendar year~~.
	68	+	[(iii)] (IV) If the title insurance producer or agency does not maintain 13
	69	+	separate bank or trust accounts for each title insurer it represents, the title insurer shall 14
	70	+	verify that the funds held on its behalf are reasonably ascertainable from the books of 15
	71	+	account and records of the title insurance producer or agency. 16
84	72
85		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take ef fect
86		-	October 1, 2022.
	73	+	[(iv)] (V) Subject to the requirement under paragraph (3) of this 17
	74	+	subsection to report suspected violations that the title insurer has reasonable cause to 18
	75	+	believe have occurred, if the title insurance producer or title agency holds an appointment 19
	76	+	with more than one title insurer, the title insurer may limit its review to files, separately 20
	77	+	held accounts, and written documentation relating to its title insurance policies. 21
87	78
88		-	Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.
	79	+	(2) A written report setting forth the results of the [on–site] ANNUAL 22
	80	+	review shall be prepared by the title insurer and is subject to examination under § 2–205 23
	81	+	of this article. 24
	82	+
	83	+	(3) If, as a result of the [examination] ANNUAL REVIEW , a title insurer 25
	84	+	has reasonable cause to believe that a title insurance producer or agency has engaged in 26
	85	+	any of the prohibited activities set forth in § 10–126 of this subtitle, the title insurer shall 27
	86	+	report in writing the suspected violation to the Commissioner [and submit a copy of the 28
	87	+	examination] IN THE REPORT PREPAR ED UNDER PARAGRAPH (2) OF THIS 29
	88	+	SUBSECTION IN A FORM AND FORMAT CREATED BY THE COMMISSIONER . 30
	89	+
	90	+	(4) The [examination] ANNUAL REVIEW required under this section is in 31
	91	+	addition to any examination conducted by the Commissioner to determine compliance with 32
	92	+	the accounts maintained for the benefit of the Maryland Affordable Housing Trust under § 33
	93	+	22–105 of this article. 34
	94	+	SENATE BILL 293 3
	95	+
	96	+
	97	+	(5) The title insurer is not required to perform the [on–site] ANNUAL 1
	98	+	review of a title insurance producer for the calendar year during which the title insurance 2
	99	+	producer is initially appointed if the appointment is made on or after June 30 of that 3
	100	+	calendar year. 4
	101	+
	102	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take ef fect 5
	103	+	October 1, 2022. 6
	104	+
	105	+
	106	+
	107	+
	108	+	Approved:
	109	+	________________________________________________________________________________
	110	+	Governor.
	111	+	________________________________________________________________________________
	112	+	President of the Senate.
	113	+	________________________________________________________________________________
	114	+	Speaker of the House of Delegates.