J. MILLARD TAWES, Governor                     1113

has been affirmed. The Commissioner may determine when a suspen-
sion of license shall become effective and it shall remain in effect for
the period fixed by him, unless he modifies or rescinds such suspen-
sion, or until the order upon which such suspension is based is
modified, rescinded or reversed.

No penalty shall be imposed and no license shall be suspended or
revoked except upon a written order of the Commissioner, stating
his findings, made after a hearing held upon not less than ten days'
written notice to such person or organization specifying the alleged
violation.

244. Title Insurance Rating.

(a)   Scope of section.

This section applies to all kinds and classes of insurance which
insure or guarantee titles to real or leasehold property or any es-
tate therein, or against loss by reason of defects, encumbrances,
liens or charges on real or leasehold property or any estate therein;
or which insure or guarantee the validity, priority and status of
real and leasehold property liens and estates; or which insure or
guarantee the correctness and sufficiency or searches for instru-
ments, liens, charges or other matters affecting the title to real or
leasehold property or any estate therein. Any person making
such guarantees or issuing such insurance shall be deemed to be en-
gaged in the business of title insurance and is hereinafter referred
to as "insurer."

(b)   Making rates.

All rates will be made in accordance with the following provisions:

(1)   Rates shall be reasonable and adequate for the class of risks
to which they apply.

(2)   Rates shall not discriminate unfairly between risks involving
essentially the same hazards and expense elements.

(3)   Due consideration will be given to past and prospective loss
experience within and outside the State, reasonable margin for profit
and contingencies, cost of participating insurance, percentage to be
allocated to reserve, operating expense and all other relevant factors
fairly attributable to the business of title insurance.

(4)   Guarantees may be grouped by classification for the estab-
lishment of rates and minimum premiums. A special or unusual
guarantee, more hazardous to the insurer than ordinary title guar-
antees because of an alleged irregularity or a difference in interpre-
tation or application of law which might affect marketability of title,
may be classified individually and separately according to the cir-
cumstances peculiar to each case.

(c)   Filing of rates and policies; approval.

(1) Every insurer must file with the Commissioner, any manual
or schedule of rates or premiums which it proposes to use, together
with any rules or regulations governing the setting or making of
such rates or premiums, and indicate the character or extent of
coverage contemplated under such rates and premiums, except that
insurers need not include rates or premiums for a special or unusual
guarantee as defined in subsection (b) (4), and such rates or pre-