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SENATE FLOOR VERSION
March 25, 2024
ENGROSSED HOUSE
BILL NO. 1506 By: Sneed of the House
and
Seifried of the Senate
An Act relating to insurance; amending 36 O.S. 2021,
Section 5001, which relates to title insurers and
previously issued polici es; directing title insurance
producer or title insurer provide certain requested
copies at no charge; modifying time frame; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 5001, is
amended to read as follows:
Section 5001. A. Any foreign or domestic stock insurer
authorized by its corporate charter to engage in business as a title
insurer shall be entitled to the issuance of a certificate of
authority as a title insurer in this state upon meeting the
applicable requirements of Article 6, Authorization of Insurers and
General Requirements, of the Oklahoma Insurance Code, except that
existing title insurers may have their certificate of authori ty
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renewed by maintaining surplus in regard to policyholders of not
less than Five Hundred Thousand Dollars ($500,000.00).
B. A person engaged in the business of preparing or issuing
abstracts of, but not guaranteeing or insuring, title to property,
or a person acting only as a title insurance producer appointed by a
title insurer, shall not be deemed to be a title insurer.
C. Every commitment and policy of title insurance issued by any
insurance company authorized to do business in this state shall be
countersigned by some person, partnership, corporation or agency
actively engaged in the real estate title business and maintaining
an office in the state, who is a duly appointed a title insurance
producer for a title insurance company holding a valid licen se and
authorized to do business in the state; provided, that no commitment
or policy of title insurance shall be issued in the State of
Oklahoma except:
1. After examination by an attorney licensed to practice in
this state of a duly certified abstract e xtension or supplemental
abstract prepared by an abstractor licensed in the county where the
property is located, from a certified abstract plant in the county
where the property is located or per a temporary certificate of
authority as provided in Section 33 of Title 1 of the Oklahoma
Statutes, from the effective date of a prior owner's policy of title
insurance issued by a title insurer licensed in this stat e provided
by the insured, the prior title insurance producer or the prior
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title insurer, at the ti me a valid order is placed pursuant to the
provisions of the Oklahoma Abstractors Law brought forward to the
effective date of the abstract plant. Subject to the conditions and
stipulations, the exclusions from coverage, exceptions from coverage
and endorsements to the policy, any policy issued based on a prior
owner's policy and a supplemental abstract shall insure the insured
against loss or damage sustaine d or incurred by reason of
unmarketability of title from sovereignty to the effective date of
the policy, not to exceed the amount of insurance stated in the
policy; or
2. If a prior owner's policy of title insurance is not
provided, then a title insurance commitment and policy may be issued
after examination by an attorney licensed to practice in this state
of a duly certified abstract of title prepared by a bonded and
licensed abstractor as defined in the Oklahoma Abstractors Law.
D. If the current owne r or insured, or the owner's or insured's
authorized agent requests, in writing, a copy of any prev iously
issued owner's policy, the title insurance producer or the title
insurer that issued the policy shall provide the requesting party
with a copy of the schedules in the previously issued policy , at no
charge, within five (5) three (3) business days, unless there exists
an unavoidable delay.
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E. As used in this section, the term "representative" shall
mean a person authorized to act on behalf of or in plac e of another
in the current transaction.
F. Every title insurance producer, title insurer or perso n who
conducts a real estate closing that presents, for filing in the
office of the county clerk, an instrument of conveyance or vesting
title in connection with a transaction in which an owner's policy of
title insurance is to be issued by a title insuran ce producer or
title insurer that is based upon such instrument shall place a
legend within the instrument that sets forth the following
information:
Deed presented for filing by: [Name of title insurance
producer, title insurer or person conducting closin g]
File Number: [File Number of title insurance producer, title
insurer or person conducting closing]
[Name of Title Insurer designated in the Commitment for Title
Insurance]
G. The Insurance Department shall maintain, for each title
insurance producer or title insurer holding a valid license and
authorized to do business in the state, contact information for the
office or person responsible for making availa ble copies of owner's
policies pursuant to this statute and shall make such contact
information generally available to the public on its website and by
telephone request.
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H. The Insurance Commissioner may promulgate rules and
regulations to carry out the provisions of this section.
SECTION 2. This act shall become effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
March 25, 2024 - DO PASS