Ch. 635                                        1995 LAWS OF MARYLAND

services if the title insurance agent OR TITLE INSURANCE BROKER has been charged
with a violation of this section or of this article that could result in suspension or
revocation of the title insurance agent's OR TITLE INSURANCE BROKER'S license.

(2) A restraining order issued by a court under this subsection is effective
until:

(i) The court lifts the restraining order; or

(ii) The charges are dismissed or adjudicated.

(L) (M) (1) FOR EACH TITLE INSURANCE AGENT AND AGENCY THAT HAS
AN APPOINTMENT WITH A TITLE INSURER, THE TITLE INSURER SHALL HAVE ON
FILE A STATEMENT OF FINANCIAL CONDITION OF EACH TITLE INSURANCE AGENT
AND AGENCY WITH AN APPOINTMENT WITH THE TITLE INSURER, AS OF THE END OF
THE PREVIOUS CALENDAR YEAR, SETTING FORTH AN INCOME STATEMENT OF
BUSINESS DONE DURING THE PRECEDING YEAR AND A BALANCE SHEET SHOWING
THE CONDITION OF ITS AFFAIRS AS OF DECEMBER 31ST PRECEDING CERTIFIED BY
THE TITLE INSURANCE AGENT OR AGENCY AS BEING A TRUE AND ACCURATE
REPRESENTATION OF THE TITLE INSURANCE AGENT'S OR AGENCY'S FINANCIAL
CONDITION.

(2)      (I) THE TITLE INSURER SHALL, AT LEAST ANNUALLY, CONDUCT
AN ON-SITE REVIEW OF THE UNDERWRITING, CLAIMS AND ESCROW PRACTICES OF
ITS TITLE INSURANCE AGENTS AND AGENCIES, WHICH SHALL INCLUDE A REVIEW
OF THE TITLE INSURANCE AGENT'S OR AGENCY'S POLICY BLANK INVENTORY AND
PROCESSING OPERATIONS.

(II) IF THE TITLE INSURANCE AGENT OR AGENCY DOES NOT
MAINTAIN SEPARATE BANK OR TRUST. ACCOUNTS FOR EACH TITLE INSURER IT
REPRESENTS, THE TITLE INSURER SHALL VERIFY THAT THE FUNDS HELD ON ITS
BEHALF ARE REASONABLY ASCERTAINABLE FROM THE BOOKS OF ACCOUNT AND
RECORDS OF THE TITLE INSURANCE AGENT OR AGENCY.

(3)      A WRITTEN REPORT SETTING FORTH THE RESULTS OF THE ON-SITE
REVIEW SHALL BE PREPARED BY THE TITLE INSURER AND IS SUBJECT TO
FINANCIAL EXAMINATION UNDER § 30 OF THIS ARTICLE!

(4)      IF, AS A RESULT OF THE AUDIT EXAMINATION, A TITLE INSURER
HAS REASONABLE CAUSE TO BELIEVE THAT A TITLE INSURANCE AGENT OR
AGENCY HAS FAILED TO REMIT PREMIUM PREMIUMS OR FUNDS OWED OR THAT
ANY OTHER VIOLATION OF THE ARTICLE HAS BEEN COMMITTED, THE TITLE
INSURER SHALL REPORT IN WRITING THE SUSPECTED VIOLATION TO THE
COMMISSIONER AND SUBMIT A COPY OF THE AUDIT EXAMINATION.

(5)      THE AUDIT EXAMINATION REQUIRED UNDER THIS SECTION IS IN
ADDITION TO ANY AUDIT EXAMINATION CONDUCTED BY THE COMMISSIONER TO
DETERMINE COMPLIANCE WITH THE ACCOUNTS MAINTAINED FOR THE BENEFIT OF
THE MARYLAND AFFORDABLE HOUSING TRUST UNDER § 486-2 OF THIS ARTICLE.

(M) (N) (1) A TITLE INSURANCE AGENT OR TITLE INSURANCE BROKER
SHALL NOTIFY THE COMMISSIONER IF AN INDIVIDUAL LICENSED UNDER THIS

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