Instructions For Title Organization License

(Requirements effective 7-1-2007) 

1.   A person that receives a new license on or after July 1, 2007 as a title insurance agency, shall at the time of licensure be owned or managed by one or more natural persons who are licensed with the following lines of authority for at least three of the five years immediately proceeding the date on which the title insurance agency applies for a license:  Both a search line of authority; and escrow line of authority; or a search and escrow line of authority. [31A-23a-204 (1)] 

2.   Utah Insurance Department Rule R590-154 requires that the name of an insurance agency licensed in the State of Utah must not be (1) misleading or deceptive;  (2) likely to be mistaken for another licensee already in business; or (3) implies association or connection with any other organization where actual bona fide association or connection does not exist.

3.  The agency shall include words such as "Title Insurance Agency” in the agency’s name OR the agency shall state that it is a title insurance agency in any letterhead, business cards, advertising, slogan, emblem, or other promotional material used or distributed by the agency in the State of Utah.  No agency is allowed to use the word “Company” in their name.  

4.  Complete application (front & back).  Unless all questions are fully answered and all forms and fees required by this application are completed and attached, the application cannot be processed. 

5.   A title insurance organization must maintain a fidelity bond or a professional liability insurance policy in an amount no less that $50,000 [Utah Insurance Code 31A-23a-204(2)].  Proof of this bond or policy must be submitted with the application. 

6.   All agents designated to represent an organization must be individually licensed in Utah. 

7.   License fee is $87.00 per two-year period.   
 

Before Operating as an Agency:  

  1. A certificate of appointment is required from each company represented.  Must be filed with the Insurance Department with a copy to you.
     

  2. The Schedule of Minimum Charges for Escrow Services must be filed as required in Utah Administrative Rule (U.A.R.) R592-3 and R592-4.   CHARGES MUST BE FILED PRIOR TO ANY CLOSINGS BEING CONDUCTED.   30-day waiting period is waived for the initial filing of escrow charges only.   

3.       3.   A 1% Reserve Trust Account must be established as outlined in U.C.A. 31A-
           23a-204(3)
 

                                                                       

Title Insurance Code, Rule, and Bulletin References
www.insurance.utah.gov 

31A-2-201                  General duties and powers (of Commissioner)

      Rule R590-160    Administrative Proceedings

31A-2-308                  Enforcement penalties and procedures

31A-2-401                  Title and Escrow Commission Act

31A-2-402                  Definitions

31A-2-403                  Title and Escrow Commission Created

31A-2-404                  Duties of the Commissioner and Title and Escrow Commission

      R592-1                  Title Insurance Licensing

      R592-2                  Title Insurance Administrative Hearings and Penalty Imposition

31A-2-405                  Dual Licensing

      Rule R592-5         Title Insurance Product or Service Approval for a Dual
                                          Licensed Title Licensee. 
Dual Licensee Expedited Form;
                                         
And Dual Licensee Request Form

31A-3-103                  Fees – See Website

31A-4-105                  Deposit Required from domestic insurers

31A-4-107                   "Other Business" – Definition

31A-14-211                 Restrictions on foreign title insurers

31A-17-408                 Title insurance reserves (Company/Insurer)

31A-19a-201               Rate standards (general)

31A-19a-202               Rating methods

31A-19a-203               Rate filings

31A-19a-209               Special provisions for title insurance (Rates)

      Rule R590-225      Submission of Property & Casualty Rate & Form Filings

      Rule R592-3           Filing a Schedule of Minimum Charges for Escrow Services

      Rule R592-4           Standards for Minimum Charges for Escrow Services

                                       Transmittal Document

                                       Schedule of Escrow Charges

31A-20-109                 Single Risk Limitation for Title Insurance

31A-20-110                 Underwriting rules for title insurance (Policy Retention)

31A-21-102(2)            Oral contracts of insurance and binders

31A-21-105(1)            Representations, warranties and conditions

Bulletin 93-2         Lenders’ Valid First Lien Letter Request

31A-23a-101               Purposes (of General Provisions)

31A-23a-104               Application for individual license – Application for agency
                                      license

31A-23a-105               General requirements for license issuance and renewal

31A-23a-106               License types

31A-23a-107               Character requirements

31A-23a-108               Examination Requirements

      Rule R590-118     Licensing Examination Rule

31A-23a-111               Revocation, suspension, surrender, lapsing, or limiting of
                                       license

      Rule R590-141     Individual and Agency Lapse and Reinstatement Rule    

31A-23a-112               Probation

31A-23a-115               Appointment and listing of insurance producers

Rule R590-101     Appointment and Termination of Individuals Licensed as 
  Agents, & Organizations

Rule R590-123      Additions and Deletions of Designees by Organizations

31A-23a-202               Continuing education requirements – Regulatory authority

Rule R590-142      Continuing Education Rule

31A-23a-203               Training period requirements

31A-23a-204              Special requirements for title insurance - 1% Reserve Trust
                                      Account

31A-23a-204               Special requirements for title insurance – 1% Reserve Trust
  Account

Rule R590-190     Unfair Property, Liability and Title Claims Settlement 
  Practices Rule

Bulletin 90-1         Requirements Pertaining To The Orderly Withdrawal From The
  Utah Title Insurance Marketplace

31A-23a-302               Agency designations

31A-23a-401               Disclosure of conflicting interests 

31A-23a-402               Unfair marketing practices

      Rule R590-99        Failure to record

Rule R590-153     Unfair Inducements and Marketing Practices in Obtaining Title
  Insurance Business

Rule R590-154     Unfair Marketing Practices Rule

31A-23a-405               Insurer liability

31A-23a-406               Title insurance agents business

Rule R590-170     Fiduciary and Trust Account Obligations

      Rule R590-212     Requirements for Interest Bearing Accounts Used by Title
                                      Insurance Agencies for Trust Fund Deposits

      Bulletin 2007-1     Prohibited Escrow Settlement Closing Transactions

31A-23a-407               Liability of title insurers for acts of title insurance agents

31A-23a-408               Representations of agency

31A-23a-409               Trust obligation for funds collected

31A-23a-410               Insurer’s liability if insured pays premium to a licensee or
  group policyholder

31A-23a-411.1            Person’s liability if premium received is not forwarded to
                                       the insurer

31A-23a-412               Place of business and business address – Records

31A-23a-413               Title agents' annual report

Rule R590-136     Title Insurance Agents’ Annual Reports

Bulletin 90-8         Insurance Department rule R590-136, Title Insurance Agents’
  Annual Reports

31A-23a-415               Assessment on title insurers

Rule R590-187     Assessment of Title Insurance Agencies & Title Insurers for 
  Costs Related to Regulation of Title Insurance

31A-23a-501               Licensee compensation

31A-23a-503               Controlled business in title insurance

31A-23a-504               Sharing commissions

31A-23a-605               Penalties and liabilities

31A-26-303                Unfair claim settlement practices

      Rule R590-190     Unfair Property, Liability and Title Claims Settlement
                                      Practices Rule 

31A-31                        Insurance Fraud Act 

      Bulletin 2000-2    Written Consent For A Prohibited Person to Engage In The
  Business of Insurance Under Title 18, United States Code,
  Sections 1033 and 1034

      Bulletin 2000-3     Written Consent For A Prohibited Person to Engage In The
   Business of Insurance Under Title 18, United States Code,
   Sections 1033 and 1034

      Bulletin 2002-4     USA Patriot Act of 2001 

The highlighted references are specific to title insurance only.  The unhighlighted references are for all lines of insurance.  You are responsible to know and follow all statutes, rules and bulletins in the operation of your business.  This information is for your convenience only and should not be considered  comprehensive in its scope.

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