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PARRIS N. GLENDENING, Governor
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Ch. 369
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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Insurance
10-121.
(j) (1) Except as provided in subparagraph (ii) of this paragraph, no
later than December 31 of the year following the year covered by the financial
statement, for each title insurance producer 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 producer 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 producer or agency as being a true and accurate representation of the title
insurance producer's or agency's financial condition.
(ii) An individual who is an employee, officer, director, partner, or
member of a licensed title insurance agency shall be considered to have met the
requirements of subparagraph (i) of this paragraph if a statement of financial
condition of the agency with which the individual is associated is on file with the title
insurer as provided under this paragraph.
(2)] (i) The title insurer shall, at least annually, conduct an on-site
review of the underwriting, claims, and escrow practices of each title insurance
producer appointed by the insurer as a principal agent as designated in the title
insurance agency contract between the insurer and the producer. The on-site review
shall include a review of the title insurance producer's or agency's policy blank
inventory and processing operations.
(ii) If the title insurance producer 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 producer or agency.
[(3)] (2) 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 §
2-205 of this article.
[(4)] (3) If, as a result of the examination, a title insurer has reasonable
cause to believe that a title insurance producer or agency has failed to remit
premiums or funds owed or that any other violation of this article has been
committed, the title insurer shall report in writing the suspected violation to the
Commissioner and submit a copy of the examination.
[(5)] (4) The examination required under this section is in addition to
any examination conducted by the Commissioner to determine compliance with the
accounts maintained for the benefit of the Maryland Affordable Housing Trust under
§ 22-103 of this article.
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- 2955 -
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