DAR File No. 42711

Insurance, Title and Escrow Commission

Rule R592-7

Title Insurance Continuing Education Program

Notice of Proposed Rule

(Repeal and Reenact)

DAR File No.: 42711
Filed: 03/20/2018 03:43:51 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The amendments to this rule are being made at the direction of the Title and Escrow Commission by a vote of 4 to 1.

Summary of the rule or change:

This rule is being amended to make a number of changes to continuing education (CE) requirements for the title insurance industry. It fully delegates authority from the Title and Escrow Commission to the Insurance Commissioner for approving CE courses, rather than granting provisional approval. It sets requirements for what types of CE can be accepted for renewal of a title insurance producer license. It allows all CE hours to be obtained through one or more insurers. It removes references to approving a title CE provider, reflecting current business practices. It also adds two new definitions and makes a number of clean-up changes for grammar and clarity.

Statutory or constitutional authorization for this rule:

• Subsection 31A-2-404(2)(a)(iii)

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget. The Insurance Department (Department) has been provisionally approving CE for the Title and Escrow Commission. These changes will have no bearing on how the Department conducts its business.

local governments:

There is no anticipated cost or savings to local governments. These changes govern the relationship between the Department and its title insurance licensees.

small businesses:

Some small businesses may see costs or savings. There are 43 CE providers that charge for CE courses taught in Utah. These providers may see a reduction in earnings due to this rule. It is not known what the magnitude of this cost would be because the Department cannot determine the number of courses each provider teaches, nor does the Department track how much they charge for classes. Conversely, the 496 agencies that pay for CE courses may see savings because agents can now get all of their CE training from title insurance companies, which generally do not charge for training.

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

The state's 2,074 individual title insurance licensees will likely see some savings, if they choose to take free CE courses from a title insurer, rather than from a CE provider that charges for training. The 43 CE providers in Utah, many of which are sole proprietors, may see a reduction in earnings if agents choose to take free CE courses from a title insurer.

Compliance costs for affected persons:

There are no compliance costs for any affected persons.

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

I. WHETHER A FISCAL IMPACT TO BUSINESS IS EXPECTED AS A RESULT OF THE PROPOSED RULE AND, IF SO, A DESCRIPTION OF WHY: Some small businesses may be impacted. CE providers that charge for training may see a reduction in earnings due to this rule. Independent agents and agencies that pay for CE courses may see savings because agents can now get all of their CE training from title insurance companies, which generally do not charge for training. II. AN ESTIMATE OF THE TOTAL NUMBER OF BUSINESS ESTABLISHMENTS IN UTAH EXPECTED TO BE IMPACTED: There are an estimated 43 CE providers that charge for training in Utah, and an estimated 496 title insurance agencies in Utah, according to Department data. III. AN ESTIMATE OF THE SMALL BUSINESS ESTABLISHMENTS IN UTAH EXPECTED TO BE IMPACTED: The 43 CE providers that charge for training in Utah may see a reduction in earnings due to this rule. It is not known what the magnitude of this cost would be because the Department cannot determine the number of courses each provider teaches, nor does the Department track how much they charge for classes. Conversely, the 496 agencies that pay for CE courses may see savings because agents can now get all of their CE training from title insurance companies, which generally do not charge for training. IV. A DESCRIPTION OF THE SOURCES OF COST OR SAVINGS AS WELL AS THE EXPECTED NET SAVINGS OR COST TO BUSINESS ESTABLISHMENTS AND SMALL BUSINESS ESTABLISHMENTS AS A RESULT OF THE PROPOSED RULE OVER A ONE-YEAR PERIOD, IDENTIFYING ONE-TIME AND ONGOING COSTS: It is not known what the magnitude of this cost would be because the Department cannot determine the number of courses each provider teaches, nor does the Department track how much they charge for classes. The Department is also unable to determine if title producers will change the manner in which they currently obtain CE. It is assumed that the 43 CE providers who charge for training will face the largest impact, as agents will now have more ability to get free CE training. The 496 agencies may see savings if they choose to attend free CE trainings presented by title insurers. V. DEPARTMENT HEAD'S COMMENTS ON THE ANALYSIS: The above in-depth fiscal analysis represents the Department's best estimate of the fiscal impact this rule will have on businesses in Utah.

Todd E. Kiser, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office 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:

• Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at sgooch@utah.gov

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:

05/15/2018

This rule may become effective on:

05/22/2018

Authorized by:

Steve Gooch, Information Specialist

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2018	FY 2019	FY 2020
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	Unknown	Unknown	Unknown
Non-Small Businesses	Unknown	Unknown	Unknown
Other Person	Unknown	Unknown	Unknown
Total Fiscal Costs:	Unknown	Unknown	Unknown
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	Unknown	Unknown	Unknown
Non-Small Businesses	Unknown	Unknown	Unknown
Other Persons	Unknown	Unknown	Unknown
Total Fiscal Benefits:	Unknown	Unknown	Unknown
Net Fiscal Benefits:	Unknown	Unknown	Unknown

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

There are 19 title insurance companies operating in Utah, according to Insurance Department (Department)licensing records. These businesses may experience a fiscal cost associated with continuing education (CE) courses if they choose to increase the number of courses they offer. The Department cannot know which or how many insurers may choose to increase the frequency of their CE courses, nor how much that might cost each business, because those numbers will vary depending on each insurer's decisions. The rule is being amended to allow title insurance producers to obtain all of their required CE training through one or more insurers if they choose. Title insurers may, at their discretion, change the number of CE courses they will provide. The Department cannot estimate the impact of this change on these insurers because it cannot know if insurers will take on additional costs as a result of the rule. Insurers may determine that it makes more business sense to continue operating as usual in the wake of this rule, or they may choose to add staff to increase the number of CE courses they teach. Any change in the way a large business operates after this rule is enacted will be a business decision made by the business.

 

The head of the Insurance Department, Todd E. Kiser, has reviewed and approved this fiscal analysis.

 

 

R592. Insurance, Title and Escrow Commission.

[R592-7. Title Insurance Continuing Education Program.

R592-7-1. Authority.

This rule is promulgated pursuant to Subsections 31A-2-404(2)(a) and (g), which direct the Title and Escrow Commission to make rules for the administration of the provisions in this title related to title insurance and the approval of continuing education programs related to title insurance.

 

R592-7-2. Purpose and Scope.

(1) The purposes of this rule are to:

(a) delegate authority from the Commission to the commissioner to provisionally approve continuing education programs related to title insurance; and

(b) establish procedures for the Commission to approve continuing education programs related to title insurance provisionally approved by the commissioner.

(2) This rule applies to all title licensees, applicants for a title insurance license, unlicensed persons doing business as a title licensee, and continuing education providers submitting continuing education programs related to title insurance for approval pursuant to 31A-2-404.

 

R592-7-3. Definitions.

"Title licensee" has the same meaning as found in Section 31A-2-402(5).

 

R592-7-4. Program Approval.

(1) The Commission hereby delegates to the commissioner provisional authority to approve continuing education programs related to title insurance including

(a) continuing education course providers; and

(b) continuing education courses.

(2) The commissioner will report to the Commission on all continuing education programs related to title insurance provisionally approved by the commissioner. This report will include approved:

(a) continuing education course providers; and

(b) continuing education courses added to the Department's list of approved continuing education courses.

(3) The Commission will review the report and

(a) concur with and thus approve the continuing education course providers and continuing education courses provisionally approved by the commissioner; or

(b) disapprove the provisionally approved continuing education course providers or continuing education courses.

(4) If the Commission disapproves a provisionally approved continuing education provider or continuing education course, the commissioner will:

(a) remove the provider or the course from the Department's approved provider or course list; and

(b) notify the provider of the disapproval.

 

R592-7-5. Program Submission.

(1) Title insurance related continuing education providers shall submit initial and renewal provider approval information to the commissioner in accordance with 31A-23a-202 and R590-142.

(2) Approved title insurance related continuing education providers shall submit requests for continuing education course approval to the commissioner in accordance with 31A-23a-202 and R590-142.

 

R592-7-6. 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 31A-2-308.

 

R592-7-7. Enforcement Date.

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

 

R592-7-8. Severability.

If any section, term, or provision of this rule shall be adjudged invalid for any reason, such judgment shall not affect, impair or invalidate any other section, term, or provision of this rule and the remaining sections, terms, and provisions shall be and remain in full force.]

R592-7. Title Insurance Continuing Education.

R592-7-1. Authority.

This rule is promulgated pursuant to Subsection 31A-2-404(2)(a)(iii), which directs the Title and Escrow Commission to make rules for the administration of the provisions related to continuing education courses related to a title licensee.

 

R592-7-2. Purpose and Scope.

(1) The purposes of this rule are to:

(a) adopt continuing education requirements for the approval of a continuing education course under 31A-2-404(2)(a)(iii);

(b) delegate authority from the Commission to the commissioner to approve a continuing education course related to a title licensee; and

(c) exempt a title licensee from the provisions of R590-142-4(2)(c).

(2) This rule applies to:

(a) a title licensee;

(b) an unlicensed individual authorized to do business as a title licensee; and

(d) a continuing education course related to title insurance.

(3) This rule does not apply to an individual who is considered to have met the continuing education requirements pursuant to Subsection 31A-23a-202(3)(b)(iii)(C).

 

R592-7-3. Definitions.

The following definitions shall apply for the purpose of this rule.

(1) "Commission" means the Title and Escrow Commission as created under Subsection 31A-2-403(1)(a).

(2) "Continuing education course" means a continuing education course related to title insurance.

(3) "Title licensee" has the same meaning as found in Subsection 31A-2-402(6).

 

R592-7-4. Continuing Education Course and Approval.

(1) The Commission hereby delegates to the commissioner the authority to approve a continuing education course under Subsection 31A-2-404(2)(e).

(2) The commissioner shall rely on the requirements of R590-142, Continuing Education Rule, for the consideration of a request for a continuing education course approval.

(3) When the commissioner approves a continuing education course, the course:

(a) is deemed approved by the Commission and has concurrence of the commissioner under Subsection 31A-2-404(2)(e) and this Subsection (1); and

(b) will be added to the Department's approved course list.

(4) The commissioner shall provide a report to the Commission on a quarterly basis listing new continuing education courses approved pursuant to this section.

(5) If the commissioner disapproves a continuing education course, the commissioner shall:

(a) remove the course from the Department's approved course list; and

(b) notify the course provider of the disapproved course.

 

R592-7-5. Course Submission.

A continuing education provider shall submit to the commissioner a request for approval of a continuing education course in accordance with Section 31A-23a-202 and R590-142.

 

R592-7-6. Licensee Course Requirements.

(1) The continuing education credit hours required for the renewal of a title insurance producer license pursuant to Subsections 31A-23a-202(3)(b)(iii)(A) and (B), may only be fulfilled through an approved course that is:

(a) related to title insurance, escrow, real estate, or ethics; and

(b) categorized by the commissioner as:

(i) title;

(ii) title ethics; or

(iii) ethics.

(2)(a) The restrictions set forth in R590-142-4(2)(c) shall not apply to a title licensee.

(b) A title licensee may obtain all required credit hours through one or more insurers.

 

R592-7-7. 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.

 

R592-7-8. Enforcement Date.

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

 

R592-7-9. Severability.

If any provision of this rule or its application to any person or situation is held to be invalid, such 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 continuing education

Date of Enactment or Last Substantive Amendment: [June 25, 2009]2018

Notice of Continuation: June 13, 2014

Authorizing, and Implemented or Interpreted Law: 31A-2-308; 31A-2-402; 31A-2-404; 31A-23a-202