2014 -- S 2816

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LC004222

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO INSURANCE - RHODE ISLAND TITLE INSURANCE ACT

     

     Introduced By: Senators Cote, and Picard

     Date Introduced: March 25, 2014

     Referred To: Senate Judiciary

     (Business Regulation)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-2.6-13 of the General Laws in Chapter 27-2.6 entitled "Rhode

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Island Title Insurers Act" is hereby amended to read as follows:

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     27-2.6-13. Duties of title insurers utilizing the services of title insurance agents. -- (a)

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The title insurer shall not accept business from a title insurance agent unless there is in force a

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written contract between the parties which that sets forth the responsibilities of each party and,

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where both parties share responsibility for a particular function, specifies the division of

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responsibilities.

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      (b) The title insurer shall, on at least a biennial basis, conduct an on-site review of the

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underwriting, claims, and escrow practices of the agent which that shall include a review of the

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agent's policy blank inventory and processing operations.

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     (1) If the title insurance producer is also an attorney, and asserts that any documents

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requested in connection with the review provided in subsection (b) are prohibited from disclosure

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by an ethical requirement, the producer shall identify in writing the particular document, the

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applicable privilege, and provide a redacted copy to the title insurer.

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      (c) A domestic title insurer shall not appoint to its board of directors an officer, director,

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employee, or controlling shareholder or any title insurance agent who wrote one percent (1%) or

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more of the title insurer's direct premiums written during the previous calendar year as shown on

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the tile insurer's most recent annual statement on file with the commissioner. This subsection

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shall not apply to relationships governed by section ยง27-35-1 et seq.

 

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      (d) The title insurer shall maintain an inventory of all policy forms or policy numbers

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allocated to each title insurance agent.

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      (e) The title insurer shall have on file proof that the title insurance agent is licensed by

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this state.

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      (f) The title insurer shall establish the underwriting guidelines and, where applicable,

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limitations on title claims settlement authority to be incorporated into contracts with its title

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insurance agents.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE - RHODE ISLAND TITLE INSURANCE ACT

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     This act would provide that a title producer who is also an attorney may identify and

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redact any documents containing privileged materials that are requested by a title insurer in an

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audit.

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     This act would take effect upon passage.

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