Title insurance.

Plain English Breakdown

The official source material does not provide information about penalties for non-compliance or specific impacts on consumer access to information.

Title Insurance Rules

This law changes how title insurers must file their rates and policies with the state, requires them to display these documents online for at least 40 days before using new rates, and mandates that underwritten title companies keep copies of rate schedules for seven years.

What This Bill Does

• Requires only title insurers to file their rates and policy forms with the Insurance Commissioner.
• Adds a requirement for title insurers conducting escrow services to also file their escrow rates.
• Changes how documents must be made public, requiring them to be available online instead of just in physical form.
• Extends the time that new or modified rates must be publicly displayed from 30 days to at least 40 days.
• Requires underwritten title companies to keep copies of each title insurer’s rate schedule for seven years.

Who It Names or Affects

• Title insurers who file their schedules and forms with the Insurance Commissioner.
• Underwritten title companies that issue title policies using these rates.
• People buying or selling property who use title insurance services.

Terms To Know

title insurer

A company that provides title insurance to protect against financial loss due to issues with the legal ownership of a property.

underwritten title company

A company that writes title policies and relies on a title insurer for coverage.

Limits and Unknowns

• The bill does not specify what happens if a rate is used before the required public display period ends.
• It's unclear how this change will affect consumers' access to information about title insurance rates.
• There are no details on penalties for non-compliance with these new requirements.

Official Summary Text

AB 2198, as amended, Michelle Rodriguez.
Title insurance.
Existing law requires a title insurer, underwritten title company, or controlled escrow company to file with the Insurance Commissioner its schedules of rates, all regularly issued forms of title policies to which those rates apply, and every modification to those forms and title policies that it proposes to use in this state. Existing law requires the filings to include the effective date and the character and extent of coverages and services contemplated. Existing law prohibits a title insurer, underwritten title company, or controlled escrow company from using a rate prior to the effective date or prior to having the filing publicly displayed for less than 30 days in the office of the company in the county to where the rate applies. Existing law requires the schedule of rates to be printed or typed in
type not smaller than 10 point, and requires that full copies are kept at all times available to the public and prominently displayed in a public place in every office of a title insurer, an underwritten title company, and a controlled escrow company in the county where the rates apply.
This bill would require only a title insurer to file with the commissioner its schedules of rates, all regularly issued forms of title policies to which those rates apply, and every modification to those forms and title policies that it proposes to use in this state. The bill would require a title insurer to also file its schedule of escrow rates if the title insurer conducts escrow services. The bill would additionally modify the documents controlled escrow companies and underwritten title companies are required to file. The bill would authorize the commissioner to object to a new or modified rate and prohibit that rate from becoming effective unless the commissioner’s objection is
resolved.
The bill would remove the requirement that the schedule of rates be printed and modify the requirement that they be publicly available by instead requiring the schedule of rates to be made publicly available by means of a clear and conspicuous link posted on the internet website of the title insurer, underwritten title company, or controlled escrow company that has filed the rate schedule, for so long as those rates remain effective. The bill would additionally require an underwritten title company to maintain a complete copy of each title insurer’s rate schedule that the underwritten title company has used for issuing title policies for a minimum of 7 years. The bill would require a notice to be posted in the applicable office that a specified rate schedule would be readily accessible for public viewing in the office of a title insurer, underwritten
title company, or controlled escrow company, upon request and as specified.
Existing law prohibits a title insurer, underwritten title company, or controlled escrow company from using any rate in the business of title insurance before its effective date or before it has been publicly displayed, as specified, for at least 30 days. Existing law provides that no rate increase shall apply to title policies or services that have been contracted for prior to the rate’s effective date.
This bill would require the rate be displayed both in physical form and through electronic publication on the company’s publicly accessible internet website for no less than 40 days.

Current Bill Text

Download Bill PDF