31A-23a-415 - Assessment on title insurance agencies or title insurers -- Account created.
31A-23a-415. Assessment on title insurance agencies or title insurers -- Accountcreated.
(1) For purposes of this section:
(a) "Premium" is as defined in Subsection 59-9-101(3).
(b) "Title insurer" means a person:
(i) making any contract or policy of title insurance as:
(A) insurer;
(B) guarantor; or
(C) surety;
(ii) proposing to make any contract or policy of title insurance as:
(A) insurer;
(B) guarantor; or
(C) surety; or
(iii) transacting or proposing to transact any phase of title insurance, including:
(A) soliciting;
(B) negotiating preliminary to execution;
(C) executing of a contract of title insurance;
(D) insuring; and
(E) transacting matters subsequent to the execution of the contract and arising out of thecontract.
(c) "Utah risks" means insuring, guaranteeing, or indemnifying with regard to real orpersonal property located in Utah, an owner of real or personal property, the holders of liens orencumbrances on that property, or others interested in the property against loss or damagesuffered by reason of:
(i) liens or encumbrances upon, defects in, or the unmarketability of the title to theproperty; or
(ii) invalidity or unenforceability of any liens or encumbrances on the property.
(2) (a) The commissioner may assess each title insurer and each title insurance agency anannual assessment:
(i) determined by the Title and Escrow Commission:
(A) after consultation with the commissioner; and
(B) in accordance with this Subsection (2); and
(ii) to be used for the purposes described in Subsection (3).
(b) A title insurance agency shall be assessed up to:
(i) $200 for the first office in each county in which the title insurance agency maintainsan office; and
(ii) $100 for each additional office the title insurance agency maintains in the countydescribed in Subsection (2)(b)(i).
(c) A title insurer shall be assessed up to:
(i) $200 for the first office in each county in which the title insurer maintains an office;
(ii) $100 for each additional office the title insurer maintains in the county described inSubsection (2)(c)(i); and
(iii) an amount calculated by:
(A) aggregating the assessments imposed on:
(I) title insurance agencies under Subsection (2)(b); and
(II) title insurers under Subsections (2)(c)(i) and (2)(c)(ii);
(B) subtracting the amount determined under Subsection (2)(c)(iii)(A) from the totalcosts and expenses determined under Subsection (2)(d); and
(C) multiplying:
(I) the amount calculated under Subsection (2)(c)(iii)(B); and
(II) the percentage of total premiums for title insurance on Utah risk that are premiums ofthe title insurer.
(d) Notwithstanding Section 31A-3-103 and subject to Section 31A-2-404, the Title andEscrow Commission by rule shall establish the amount of costs and expenses described underSubsection (3) that will be covered by the assessment, except the costs or expenses to be coveredby the assessment may not exceed $75,000 annually.
(3) (a) Money received by the state under this section shall be deposited into the TitleLicensee Enforcement Restricted Account.
(b) There is created in the General Fund a restricted account known as the "TitleLicensee Enforcement Restricted Account."
(c) The Title Licensee Enforcement Restricted Account shall consist of the moneyreceived by the state under this section.
(d) The commissioner shall administer the Title Licensee Enforcement RestrictedAccount. Subject to appropriations by the Legislature, the commissioner shall use the moneydeposited into the Title Licensee Enforcement Restricted Account only to pay for a cost orexpense incurred by the department in the administration, investigation, and enforcement of thispart and Part 5, Compensation of Producers and Consultants, related to:
(i) the marketing of title insurance; and
(ii) audits of agencies.
(e) An appropriation from the Title Licensee Enforcement Restricted Account isnonlapsing.
(4) The assessment imposed by this section shall be in addition to any premiumassessment imposed under Subsection 59-9-101(3).
Amended by Chapter 10, 2010 General Session
Amended by Chapter 265, 2010 General Session, (Coordination Clause)