Insurance, Title and Escrow Commission

Rule R592-16

Agency Supervision by Qualifying Licensee

Notice of Proposed Rule

(New Rule)

DAR File No.: 36065
Filed: 04/13/2012 10:33:07 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to establish guidelines for agency licensing specifically in regard to Subsection 31A-23a-204(1), in order to ensure that all agencies have a dedicated licensee with a requisite level of experience directly supervising the title and escrow operations of their agency.

Summary of the rule or change:

This rule establishes guidelines for agency licensing specifically in regard to Subsection 31A-23a-204(1), and ensures that all title agencies have a dedicated licensee with a requisite level of experience directly supervising the title and escrow operations of their agency.

State statutory or constitutional authorization for this rule:

• Section 31A-2-404

Anticipated cost or savings to:

the state budget:

This rule should have no fiscal impact on the department in costs or savings. It clarifies what is already in the code, clarifying requisite level of experience for the supervisor of an agency.

local governments:

This rule will have no effect on local governments since it deals solely with the relationship between the department and its licensees, in this case, title agencies and producers.

small businesses:

The small agency that does not have a supervisor in-house with the requisite level of experience will need to obtain one. They may be able to designate someone internally or hire someone from outside. The latter, of course, would be more expensive. The exact cost of either of these options, or any others, would be in part dependent upon the experience and expertise of the person.

persons other than small businesses, businesses, or local governmental entities:

Large agencies that do not have a supervisor in-house with the requisite level of experience will need to obtain one. They may be able to designate someone within their operation or hire someone from outside. The latter, of course, would be more expensive. The exact cost of either of these options, or any other, would vary from agency to agency.

Compliance costs for affected persons:

Agencies that do not have a supervisor in-house with the requisite level of experience will need to obtain one. They may be able to designate someone within their operation or hire someone from outside. The latter, of course, would be more expensive. The exact cost of either of these options, or any other, would vary from agency to agency.

Comments by the department head on the fiscal impact the rule may have on businesses:

The cost of this rule will vary from agency to agency

Neal T. Gooch, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Title and Escrow Commission
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/31/2012

Interested persons may attend a public hearing regarding this rule:

• 05/14/2012 09:00 AM, East Building, 420 N State Street, Spruce Room, Salt Lake City, UT

This rule may become effective on:

06/07/2012

Authorized by:

Jilene Whitby, Information Specialist

R592. Insurance, Title and Escrow Commission.

R592-16. Agency Supervision by Qualifying Licensee.

R592-16-1. Authority.

This rule is promulgated pursuant to Subsections 31A-2-404(2)(a)(ii), (iv) and (b), which direct the Title and Escrow Commission to make rules pertaining to the licensing of a title licensee, standards of conduct for a title insurer, agency or producer, and require the Title and Escrow Commission's concurrence in the issuance and renewal of title licensee licenses.

 

R592-16-2. Purpose and Scope.

(1) The purpose of this rule is to establish guidelines for agency licensing specifically in regard to the 31A-23a-204(1), in order to ensure that all agencies have a dedicated licensee with a requisite level of experience directly supervising the title and escrow operations of their agency.

(2) This rule applies to all applicants for a title insurance agency license or renewal of a title insurance agency license.

 

R592-16-3. Definitions.

"Qualifying Licensee" means the individual or individuals designated by the agency under Section 31A-23a-204(1).

 

R592-16-4. Licensing/Supervision.

(1) The Commission finds that in order to protect the public the Qualifying Licensee shall be:

(a) devoted to only a single agency;

(b) responsible for the direct supervision and oversight of the title and escrow operations of their agency; and

(c) named as the "Qualifying Licensee" for only a single agency.

(2) The Qualifying Licensee may seek an exemption from compliance with this rule, from the Commissioner, with concurrence of the Commission.

 

R592-16-5. Enforcement Date.

The commissioner will begin enforcing this rule upon the rule's effective date.

 

R592-16-6. Severability.

If any provision of this rule or its application to any person or situation is held to be invalid, that invalidity shall not affect any other provision or application of this rule which can be given effect without the invalid provision or application, and to this end the provisions of this rule are declared to be severable.

 

KEY: title insurance

Date of Enactment or Last Substantive Amendment: 2012

Authorizing, and Implemented or Interpreted Law: 31A-2-404; 31A-23a-204