83R3924 PMO-F
By: Darby H.B. No. 3046
A BILL TO BE ENTITLED
AN ACT
relating to the provision of title insurance coverage by more than
one title insurance company in a single title insurance
transaction.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2704, Insurance Code, is
amended by adding Section 2704.005 to read as follows:
Sec. 2704.005. COINSURANCE OF RISK. (a) A title insurance
company authorized to engage in business in this state may not issue
a title insurance policy for a risk insured by one or more other
title insurance companies unless each other title insurance company
executes a coinsurance endorsement prescribed by the commissioner.
(b) The premium for the title insurance policy described by
Subsection (a) shall be determined for the total risk insured and
apportioned between or among the title insurance companies insuring
the risk based on the amount of risk insured by each insurer.
(c) The title insurance company issuing the title insurance
policy is responsible for collecting the title insurance premium
and distributing the premium as apportioned under Subsection (b).
SECTION 2. This Act applies only to a title insurance policy
that is delivered or issued for delivery on or after January 1,
2014. A policy delivered or issued for delivery before that date is
governed by the law as it existed immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
SECTION 3. This Act takes effect September 1, 2013.