DAR File No. 32547

Insurance, Title and Escrow Commission

R592-9

Title Insurance Recovery, Education, and Research Fund Assessment Rule

NOTICE OF PROPOSED RULE

DAR File No.: 32547
Filed: 04/23/2009, 02:08
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being repealed due to failure to comply with Subsection 31A-2-404(3) requiring the Title and Escrow Commission to provide the Real Estate Commission with the same proposed rule filing form and rule text as is provided to the Division of Administrative Rules. At the same time as this repeal filing is being made, a new rule filing is being processed and provided to the Real Estate Commission as required by law. (DAR NOTE: The proposed new Rule R592-9 is under DAR No. 32527 and was published in the May 1, 2009, issue of the Bulletin.)

Summary of the rule or change:

It has been determined that the process of filing this rule for the rulemaking process violated the code. As a result, this rule is being repealed then re-filed and provided to the Real Estate Commission as required by Subsection 31A-2-404(3).

State statutory or constitutional authorization for this rule:

Sections 31A-41-202 and 31A-2-308

Anticipated cost or savings to:

the state budget:

The repeal of this rule will have no fiscal impact on the department since it is being put back into effect at the same time, resulting in no lapse or change in rule content.

local governments:

The repeal of this rule will not affect local governments since the rule deals solely with the relationship between the Commission and the title industry.

small businesses and persons other than businesses:

The repeal of this rule will have no fiscal impact on small businesses since it is being put back into effect at the same time resulting in no lapse or change in rule content.

Compliance costs for affected persons:

The repeal of this rule will have no fiscal impact on individuals, associations, entities, etc., since it will be put back into effect at the same time resulting in no lapse or change in rule content.

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

At the same time this rule is being repealed another filing is being made to put it back into effect. Both filings will be put into effect on the same day resulting in no lapse or change in rule content. Canyon Walker Anderson, Title and Escrow Commission Chair

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:

06/15/2009

This rule may become effective on:

06/22/2009

Authorized by:

Jilene Whitby, Information Specialist

R592. Insurance, Title and Escrow Commission.

[R592-9. Title Insurance Recovery, Education, and Research Fund Assessment Rule.

R592-9-1. Authority.

This rule is promulgated pursuant to Section 31A-41-202 which requires the Title and Escrow Commission to determine the amount of required assessments from individual title insurance producers and title insurance agencies to provide funding for the recovery, education, and research fund.

 

R592-9-2. Purpose and Scope.

(1) The purpose of this rule is:

(a) to establish the amounts for individual title insurance producer assessments; and

(b) to establish the amounts for title insurance agency assessments.

(2) This rule applies to all individual title insurance producer applicants and licensees and all title insurance agency license applicants and licensees and any unlicensed person doing the business of title insurance.

 

R592-9-3. Establishing Assessment Amounts.

(1) Prior to July 1 of each year, the Commission shall establish the assessment amounts for:

(a) an initial producer license for an individual title insurance producer applicant;

(b) a renewal license for a licensed individual title insurance producer;

(c) an initial agency license for a title insurance agency applicant; and

(d) an annual assessment for a licensed title insurance agency.

(2) Annual licensed title insurance agency assessment amounts shall be established for the following four premium bands of title insurance premiums:

(a) Band A: $0 to $1 million;

(b) Band B: more than $1 million to $10 million;

(c) Band C: more than $10 million to $20 million; and

(d) Band D: more than $20 million.

(3) The individual producer and agency assessment amounts shall be adopted by motion of the Commission.

(4) The adopted assessment amounts shall be posted on the Insurance Department's web page.

 

R592-9-4. Individual Title Insurance Producer Assessment.

(1) Beginning July 1, 2009:

(a) A person applying for an initial individual title insurance producer license or a licensed individual title producer adding an additional title insurance line of authority shall pay an assessment not to exceed $20.00 at the time of application; and

(b) a licensee renewing an individual title insurance producer license shall pay an assessment not to exceed $20.00 at the time of application.

(2) An individual title insurance producer assessment will be paid in accordance with R590-102, Insurance Department Fee Payment Rule.

 

R592-9-5. Title Insurance Agency Assessment.

(1) Beginning July 1, 2008, a person applying for an initial title insurance agency license shall pay an assessment of $1,000 at the time of application.

(2) Beginning January 1, 2009, a licensed title insurance agency shall pay an annual assessment.

(3) An agency's placement in one of the four assessment bands will be determined by an agency's title insurance written premium volume for the preceding calendar year as of December 31 of that calendar year.

(4) An agency's annual assessment will be paid in accordance with R590-102, Insurance Department Fee Payment Rule.

 

R592-9-6. Penalties.

A person found, after a hearing or other regulatory process, to be in violation of this rule shall be subject to penalties as provided under Section 31A-2-308.

 

R592-9-7. Enforcement Date.

The commissioner will begin enforcing this rule July 1, 2008.

 

R592-9-8. Severability.

If any provision or clause of this rule or its application to any person or situation is held invalid, such invalidity may 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 recovery fund assessment

Date of Enactment or Last Substantive Amendment: July 14, 2008

Authorizing, and Implemented or Interpreted Law: 31A-2-308; 31A-41-202]