Oklahoma 2024 Regular Session

Oklahoma House Bill HB1506 Compare Versions

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	30	+	March 25, 2024
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	33	+	ENGROSSED HOUSE
3	34		BILL NO. 1506 By: Sneed of the House
4	35
5	36		and
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7	38		Seifried of the Senate
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14	43		An Act relating to insurance; amending 36 O.S. 2021,
15	44		Section 5001, which relates to title insurers and
16	45		previously issued polici es; directing title insurance
17	46		producer or title insurer provide certain requested
18	47		copies at no charge; modifying time frame; and
19	48		providing an effective date.
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24		-	~~SUBJECT: Insurance~~
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26	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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28	56		SECTION 1. AMENDATORY 36 O.S. 2021, Section 5001, is
29	57		amended to read as follows:
30		-
31	58		Section 5001. A. Any foreign or domestic stock insurer
32	59		authorized by its corporate charter to engage in business as a title
33	60		insurer shall be entitled to the issuance of a certificate of
34	61		authority as a title insurer in this state upon meeting the
35	62		applicable requirements of Article 6, Authorization of Insurers and
36	63		General Requirements, of the Oklahoma Insurance Code, except that
37	64		existing title insurers may have their certificate of authori ty
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	66	+	SENATE FLOOR VERSION - HB1506 SFLR Page 2
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38	92		renewed by maintaining surplus in regard to policyholders of not
39	93		less than Five Hundred Thousand Dollars ($500,000.00).
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41	94		B. A person engaged in the business of preparing or issuing
42	95		abstracts of, but not guaranteeing or insuring, title to property,
43	96		or a person acting only as a title insurance producer appointed by a
44	97		title insurer, shall not be deemed to be a title insurer.
45		-	ENR. H. B. NO. 1506 Page 2
46	98		C. Every commitment and policy of title insurance issued by any
47	99		insurance company authorized to do business in this state shall be
48	100		countersigned by some person, partnership, corporation or agency
49	101		actively engaged in the real estate title business and maintaining
50	102		an office in the state, who is a duly appointed a title insurance
51	103		producer for a title insurance company holding a valid licen se and
52	104		authorized to do business in the state; provided, that no commitment
53	105		or policy of title insurance shall be issued in the State of
54	106		Oklahoma except:
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56	107		1. After examination by an attorney licensed to practice in
57	108		this state of a duly certified abstract e xtension or supplemental
58	109		abstract prepared by an abstractor licensed in the county where the
59	110		property is located, from a certified abstract plant in the county
60	111		where the property is located or per a temporary certificate of
61	112		authority as provided in Section 33 of Title 1 of the Oklahoma
62	113		Statutes, from the effective date of a prior owner's policy of title
63	114		insurance issued by a title insurer licensed in this stat e provided
64	115		by the insured, the prior title insurance producer or the prior
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65	143		title insurer, at the ti me a valid order is placed pursuant to the
66	144		provisions of the Oklahoma Abstractors Law brought forward to the
67	145		effective date of the abstract plant. Subject to the conditions and
68	146		stipulations, the exclusions from coverage, exceptions from coverage
69	147		and endorsements to the policy, any policy issued based on a prior
70	148		owner's policy and a supplemental abstract shall insure the insured
71	149		against loss or damage sustaine d or incurred by reason of
72	150		unmarketability of title from sovereignty to the effective date of
73	151		the policy, not to exceed the amount of insurance stated in the
74	152		policy; or
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76	153		2. If a prior owner's policy of title insurance is not
77	154		provided, then a title insurance commitment and policy may be issued
78	155		after examination by an attorney licensed to practice in this state
79	156		of a duly certified abstract of title prepared by a bonded and
80	157		licensed abstractor as defined in the Oklahoma Abstractors Law.
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82	158		D. If the current owne r or insured, or the owner's or insured's
83	159		authorized agent requests, in writing, a copy of any prev iously
84	160		issued owner's policy, the title insurance producer or the title
85	161		insurer that issued the policy shall provide the requesting party
86	162		with a copy of the schedules in the previously issued policy , at no
87	163		charge, within five (5) three (3) business days, unless there exists
88	164		an unavoidable delay.
89		-	ENR. H. B. NO. 1506 Page 3
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90	192		E. As used in this section, the term "representative" shall
91	193		mean a person authorized to act on behalf of or in plac e of another
92	194		in the current transaction.
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94	195		F. Every title insurance producer, title insurer or perso n who
95	196		conducts a real estate closing that presents, for filing in the
96	197		office of the county clerk, an instrument of conveyance or vesting
97	198		title in connection with a transaction in which an owner's policy of
98	199		title insurance is to be issued by a title insuran ce producer or
99	200		title insurer that is based upon such instrument shall place a
100	201		legend within the instrument that sets forth the following
101	202		information:
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103	203		Deed presented for filing by: [Name of title insurance
104	204		producer, title insurer or person conducting closin g]
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106	205		File Number: [File Number of title insurance producer, title
107	206		insurer or person conducting closing]
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109	207		[Name of Title Insurer designated in the Commitment for Title
110	208		Insurance]
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112	209		G. The Insurance Department shall maintain, for each title
113	210		insurance producer or title insurer holding a valid license and
114	211		authorized to do business in the state, contact information for the
115	212		office or person responsible for making availa ble copies of owner's
116	213		policies pursuant to this statute and shall make such contact
117	214		information generally available to the public on its website and by
118	215		telephone request.
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120	243		H. The Insurance Commissioner may promulgate rules and
121	244		regulations to carry out the provisions of this section.
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123	245		SECTION 2. This act shall become effective November 1, 2024.
124		-	ENR. H. B. NO. 1506 Page 4
125		-	Passed the House of Representatives the 6th day of March, 2024.
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130		-	Presiding Officer of the House
131		-	of Representatives
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135		-	Passed the Senate the 15th day of April, 2024.
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140		-	Presiding Officer of the Senate
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143		-	OFFICE OF THE GOVERNOR
144		-	Received by the Office of the Governor this ____________________
145		-	day of ___________________, 20_______, at _______ o'clock _______ M.
146		-	By: _________________________________
147		-	Approved by the Governor of the State of Oklahoma this _____ ____
148		-	day of ___________________, 20_______, at _______ o'clock _______ M.
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150		-
151		-	_________________________________
152		-	Governor of the State of Oklahoma
153		-
154		-	OFFICE OF THE SECRETARY OF STATE
155		-	Received by the Office of the Secretary of State this __________
156		-	day of ___________________, 20____ ___, at _______ o'clock _______ M.
157		-	By: _________________________________
158		-
	246	+	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
	247	+	March 25, 2024 - DO PASS