81R5380 PMO-F
By: Eltife S.B. No. 510
A BILL TO BE ENTITLED
AN ACT
relating to licensing of certain residents of a state as escrow
officers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2652.051(c), Insurance Code, is amended
to read as follows:
(c) The completed application must state that:
(1) the proposed escrow officer is an individual who
is a bona fide resident of:
(A) this state; or
(B) a state adjacent to this state;
(2) the proposed escrow officer is an attorney or is a
bona fide employee of:
(A) an attorney licensed as an escrow officer; or
(B) a title insurance agent or direct operation;
(3) the proposed escrow officer has reasonable
experience or instruction in the field of title insurance; [and]
(4) the title insurance agent or direct operation does
not know of any fact or condition that disqualifies the proposed
escrow officer from receiving a license; and
(5) the proposed escrow officer is a bona fide
employee of a title insurance agent or direct operation with an
office in this state.
SECTION 2. Section 2652.103, Insurance Code, is amended to
read as follows:
Sec. 2652.103. AMOUNT OF BOND OR DEPOSIT. (a) The amount
of the bond or deposit required under this subchapter is determined
by multiplying the number of escrow officers employed by the title
insurance agent or direct operation by:
(1) $5,000 for an application of an individual who is a
bona fide resident of this state; or
(2) $10,000 for an application of an individual who is
a bona fide resident of a state adjacent to this state.
(b) Notwithstanding Subsection (a), [except that] the
maximum amount of the bond or deposit required under this
subchapter is $50,000.
SECTION 3. Section 2652.201, Insurance Code, is amended to
read as follows:
Sec. 2652.201. GROUNDS FOR LICENSE DENIAL OR DISCIPLINARY
ACTION. (a) The department may deny an application for a license
or discipline an escrow officer under Sections 4005.102, 4005.103,
and 4005.104 if the department determines that the applicant or
license holder has:
(1) wilfully violated this title;
(2) intentionally made a material misstatement in the
license application;
(3) obtained or attempted to obtain the license by
fraud or misrepresentation;
(4) misappropriated or converted to the escrow
officer's own use or illegally withheld money belonging to a title
insurance agent, direct operation, or another person;
(5) been guilty of fraudulent or dishonest practices;
(6) materially misrepresented the terms and
conditions of a title insurance policy or contract; or
(7) failed to complete all educational requirements.
(b) The department may not deny an application for a license
or discipline an escrow officer under Section 4005.102, 4005.103,
or 4005.104 solely because the individual resides in an adjacent
state and acts as an escrow officer in this state as a bona fide
employee of a title insurance agent or direct operation in this
state.
SECTION 4. This Act applies to an application to act as an
escrow officer that is filed with the Texas Department of Insurance
on or after the effective date of this Act. An application filed
before that date is governed by the law in effect on the date the
application was filed, and the former law is continued in effect for
that purpose.
SECTION 5. This Act takes effect September 1, 2009.