insurance department · 16/09/2019 · james swan (insurer, salt lake county) vice chair, alison...

State of Utah Title & Escrow Commission Meeting

Meeting Information

State Office Building Suite 3110, Salt Lake City, UT 84114-6901 ♦ (801) 538-3800 ♦ Facsimile (801) 538-3829 ♦ www.insurance.utah.gov

State of Utah

GARY R. HERBERT

Governor

SPENCER J. COX Lieutenant Governor

TODD E. KISER Commissioner

Insurance Department

Date: September 16, 2019 Time: 9:00 AM Place: East Building, Copper Room or by telephone: 1-877-820-7831 passcode: 827555#

ATTENDEES TITLE & ESCROW COMMISSION

Chair, Nancy Frandsen (Insurer, Salt Lake County) James Swan (Insurer, Salt Lake County) Vice Chair, Alison McCoy (Agency, Tooele County) Chase Phillips (Agency, Weber County) Randy Smart (Public Member, Salt Lake County) Perri Babalis, AG Counsel - TEC

DEPARTMENT STAFF

Todd Kiser, Ins. Commissioner Reed Stringham, Deputy Comm. Tracy Klausmeier, P&C Dir. Randy Overstreet, Licensing Dir. Michael Covington, CE Specialist Adam Martin, MC Examiner Steve Gooch, PIO Recorder

AGENDA

General Session: (Open to the Public) • Welcome / Nancy Frandsen, Chair • Telephone Roll Call • Adopt Minutes of Previous Meeting • Concurrence Reports / Reed

o Licenses o Annual report

• Board Duties & Responsibilities / Perri • Update on 2019 Goals

o ULTA report / James o Real Estate Commission report / Nancy

• New Business o Increasing statutory cap on recoverable costs for title enforcement / Reed

• Old Business o Response to Administrative Rules Review Committee re: R592-6-5 / Nancy o Proposed amendments to R592-11 / Reed

• Other Business • Hot Topics

Executive Session (None)

• Adjourn • Next Meeting: October 21, 2019 — Copper Room

2019 Meeting Schedule in Copper Room Jan 14 Feb 11 Mar 11 Apr 15 May 28 Jun 10 - Canceled Jul 15 Aug 12 Sept 16 Oct 21 Nov 18 Dec 16

* bold dates denote quarterly required in-person meetings 2019 Goals

1. Continue making sure testing is relevant 2. Continue working with the Real Estate Commission 3. Continue working with the ULTA as a liaison 4. Increase awareness of wire fraud's effect on consumers and agencies

Title Agency LicensingAugust 2019

New Licenses:Agency ID Name Orig Issue Date Expire Date LOA191575 TRIDENT TITLE INSURANCE AGENCY LLC 8-Aug-19 31-Aug-21 TE191575 TRIDENT TITLE INSURANCE AGENCY LLC 8-Aug-19 31-Aug-21 TS

Renewed Licenses:Agency ID Name Orig Issue Date Expire Date LOA7704 AMERICAN PREFERRED TITLE INS AGENCY 5-Oct-99 31-Dec-19 TE7704 AMERICAN PREFERRED TITLE INS AGENCY 19-Dec-17 31-Dec-19 TS185614 FIDELITY TITLE SERVICES, LLC 17-Aug-17 31-Aug-21 TE185614 FIDELITY TITLE SERVICES, LLC 17-Aug-17 31-Aug-21 TMR185614 FIDELITY TITLE SERVICES, LLC 17-Aug-17 31-Aug-21 TS6556 PROVO ABSTRACT COMPANY, INC 14-Jul-76 31-Jul-20 TE6556 PROVO ABSTRACT COMPANY, INC 14-Jul-76 31-Jul-20 TS178881 RELTCO OF UTAH LLC 5-Aug-15 31-Aug-21 TE178881 RELTCO OF UTAH LLC 5-Aug-15 31-Aug-21 TS

Lapsed Licenses:Agency ID Name Orig Issue Date Expired Date LOA(none)

Reinstated Licenses:Agency ID Name Orig Issue Date Expire Date Reinstated Date LOA185617 NATIONWIDE TITLE INSURANCE AGENCY, INC. 26-Jul-17 31-Jul-21 15-Aug-19 TE185617 NATIONWIDE TITLE INSURANCE AGENCY, INC. 26-Jul-17 31-Jul-21 15-Aug-19 TS

Title Agent Licensing:August 2019

New Licenses:Individual ID Name Orig Issue Date Expire Date LOA1834205 BLACKHURST, MITCHELL 22-Aug-19 30-Jun-22 TMR1831231 FELIX, JOANN 5-Aug-19 28-Feb-22 TE1823376 JONES, CRYSTAL 2-Aug-19 31-Oct-21 TE1716460 VANAMEN, KYLIE 22-Aug-19 31-Dec-21 TE1835205 WEIERHOLT, ERIK 26-Aug-19 31-Aug-21 TS1835205 WEIERHOLT, ERIK 26-Aug-19 31-Aug-21 TE

New Licenses:Individual ID Name Orig Issue Date Expire Date LOA1678179 BARKER, STEPHANIE 20-Sep-16 31-Aug-21 TS111451 BARRUS, SHELLIE 15-Mar-05 31-Aug-21 TE1604017 BARTLETT, SPENCER 3-Mar-15 31-Aug-21 TE1489894 BEHLING, STEPHANIE 25-Mar-13 31-Aug-21 TE1489894 BEHLING, STEPHANIE 25-Jun-13 31-Aug-21 TS1715377 BROWN, MACKLIN 11-Aug-17 31-Aug-21 TMR116706 CARTER, BRIAN 22-Jul-05 31-Aug-21 TE112713 CHRISTENSEN, F 19-Apr-05 31-Aug-21 TS112713 CHRISTENSEN, F 14-Apr-05 31-Aug-21 TE1608335 CLARK, KYLE 30-Mar-15 31-Aug-21 TMR33531 COLORADO, BELISARIO 20-Jan-99 31-Aug-21 TE1709747 CURLIS, TODD 6-Jun-17 31-Aug-21 TS1460459 DANIEL, HEIDI 20-Oct-15 31-Aug-21 TS81240 DEARDEN, CORTNEY 11-Sep-02 31-Aug-21 TE92946 DRAKE, LAENA 1-Aug-03 31-Aug-21 TS92946 DRAKE, LAENA 3-Aug-04 31-Aug-21 TE67493 GLEASON, GINA 19-Jun-01 31-Aug-21 TS1570735 GOWDY, SCOTT 2-Mar-15 31-Aug-21 TS1570735 GOWDY, SCOTT 2-Mar-15 31-Aug-21 TE

Individual ID Name Orig Issue Date Expire Date LOA36652 GREEN, GLEN 27-Jul-81 31-Aug-21 TS36652 GREEN, GLEN 27-Jul-81 31-Aug-21 TE106901 GRIFFITH, BRENT 21-Oct-04 31-Aug-21 TE45085 GURR, GARY 15-Mar-96 31-Aug-21 TE45085 GURR, GARY 10-Aug-93 31-Aug-21 TS92781 HAMNER, LOUIE 1-Aug-03 31-Aug-21 TE67736 HIGLEY, MARGERY 13-Jul-01 31-Aug-21 TS117262 HUBBARD, EDWARD 17-Aug-05 31-Aug-21 TS38505 JOHNSON, TYLER 19-Sep-96 31-Aug-21 TE134164 JONES, JENNIFER 15-Sep-06 31-Aug-21 TE84583 Johnson, Heather 3-Dec-02 31-Aug-21 TE1552827 LANE, DANIELLE 12-Jan-15 31-Aug-21 TE1509494 LARSEN, KECIA 12-Dec-16 31-Aug-21 TE31704 LAWLESS, JAMIE 25-Mar-96 31-Aug-21 TE37327 MCNEELY, CAROLYN 8-Dec-94 31-Aug-21 TE142375 NELSON, KRISTI 16-May-07 31-Aug-21 TS40309 NELSON, KENNETH 10-May-95 31-Aug-21 TE142375 NELSON, KRISTI 26-Feb-18 31-Aug-21 TE44881 NIELSON, TODD 1-Feb-89 31-Aug-21 TE44881 NIELSON, TODD 1-Feb-89 31-Aug-21 TS91333 NIMMER, DAVID 2-Jun-03 31-Aug-21 TS140266 OLSON, KENNETH 16-Feb-07 31-Aug-21 TS52770 ORNELAS, JOSE 22-Jun-92 31-Aug-21 TS52770 ORNELAS, JOSE 22-Jun-92 31-Aug-21 TE30446 ORTON, JILL 11-Aug-89 31-Aug-21 TE82722 PATTEN, ANDREW 22-Oct-02 31-Aug-21 TMR34998 PEARSON, NICOLE 5-Mar-99 31-Aug-21 TE132006 PHILLIPS, CHAD 2-Aug-06 31-Aug-21 TS132006 PHILLIPS, CHAD 22-Mar-10 31-Aug-21 TE41591 RICH, AMANDA 23-Jun-99 31-Aug-21 TE40449 ROUNDY, THOR 18-May-95 31-Aug-21 TS40449 ROUNDY, THOR 18-May-95 31-Aug-21 TE1697607 SANDBERG, SHELLY 26-Jun-17 31-Aug-21 TE

Individual ID Name Orig Issue Date Expire Date LOA146004 SHELLEY, CRYSTAL 8-Jun-07 31-Aug-21 TE50846 SHIELDS, JAMES 1-Jul-85 31-Aug-21 TS1378064 SIMONS, JAELYN 21-Nov-16 31-Aug-21 TS1378064 SIMONS, JAELYN 14-Jan-09 31-Aug-21 TE40781 SPRIGGS, MARTIN 11-Apr-95 31-Aug-21 TS40781 SPRIGGS, MARTIN 10-Mar-99 31-Aug-21 TE42473 STAPLES, PATRICIA 30-Jul-07 31-Aug-21 TE145674 Simon, Jessie 16-Jun-09 31-Aug-21 TE145674 Simon, Jessie 3-Aug-07 31-Aug-21 TMR1416602 TATTON, JENNIFER 5-Apr-11 31-Aug-21 TS1416602 TATTON, JENNIFER 25-Jun-12 31-Aug-21 TE39296 TROTTER, NARI 28-Aug-89 31-Aug-21 TE39296 TROTTER, NARI 28-Aug-89 31-Aug-21 TS1693412 UNDERHILL, SAYRA 21-Mar-18 31-Aug-21 TE143582 WADMAN, JAMIE 8-May-07 31-Aug-21 TS103432 WESTBROOK, JOSHUA 2-Jul-04 31-Aug-21 TS103432 WESTBROOK, JOSHUA 19-Oct-04 31-Aug-21 TE1515737 WILLIAMS, KYLE 30-Jan-13 31-Aug-21 TS43980 WILLIAMS, JEFFREY 7-Jun-05 31-Aug-21 TS43980 WILLIAMS, JEFFREY 15-May-95 31-Aug-21 TMR1515737 WILLIAMS, KYLE 22-Feb-13 31-Aug-21 TE43980 WILLIAMS, JEFFREY 12-Dec-97 31-Aug-21 TE

Lapsed Licenses:Individual ID Name Orig Issue Date Expired Date LOA1597273 ASPSETER, MICHELLE 23-Dec-14 31-Jul-19 TMR68675 BOLTIS, ALVERNON 8-Aug-01 31-Jul-19 TE44215 JENSEN, JEFFREY 17-Jan-77 31-Jul-19 TS44215 JENSEN, JEFFREY 17-Jan-77 31-Jul-19 TE90327 KALAHER, TRACEE 20-May-03 31-Jul-19 TE44788 KIRKLAND, BRENT 8-Jun-77 31-Jul-19 TE44788 KIRKLAND, BRENT 8-Jun-77 31-Jul-19 TS25625 KRAFT, LIONEL 26-Sep-16 31-Jul-19 TMR

Individual ID Name Orig Issue Date Expired Date LOA44802 MERRILL, KEVIN 11-Sep-84 31-Jul-19 TE44802 MERRILL, KEVIN 11-Sep-84 31-Jul-19 TS1681654 OLSEN, DANNA 13-Jun-17 31-Jul-19 TMR1528992 SMITH, TRAVIS 31-May-13 31-Jul-19 TS39708 TAYLOR, CHRIS 6-Jul-93 31-Jul-19 TE1593097 THOMAS, CHET 24-Nov-14 31-Jul-19 TMR

Reinstated Licenses:Individual ID Name Orig Issue Date Expire Date Reinstated Date LOA138546 VALLE, JOSE 13-Apr-16 31-Jan-21 21-Aug-19 TMR

Insurance Commissioner’s Annual Report to the Title and Escrow Commission

September 16, 2019 This is the Insurance Commissioner’s annual report to the Title and Escrow Commission for the period September 1, 2018 through August 31, 2019. The content of the report is specified in Utah Code § 31A-2-404(5). It requires the following information concerning “complaints the commissioner receives”:

• the number of complaints with regard to transactions involving title insurance or a title licensee during the calendar year immediately preceding the report;

• the type of complaints; • action taken by the commissioner for each complaint; and • the time-period beginning the day on which a complaint is made and ending the

day on which the commissioner determines it will take no further action with regard to the complaint.

In reporting this information, the Commissioner “may not identify a person.” Id. Based on the requirements above, the Commissioner reports the following:

• The commissioner received 32 complaints regarding title insurance transactions or title licensees.

• The types of complaints involved escrow (improper funds disbursement, failure

to provide closing documents, failure to release earnest money, failure to refund money, and failure to use proper documentation); title insurers (denial of claim, delay in handling claim); unfair inducements (co-sponsoring client event, co-advertising with a client); dual licensing (producer held active real estate license, agency employed dual license producer).

• The action taken on each complaint, and the beginning and ending days, are set

forth in the attached spread sheet.

Type of Complaint Begin Date End Date Action Taken

1 Dual licensing 1/10/2019 2/11/2019 NAT

2 Dual licensing 1/10/2019 2/11/2019 NAT

3 Escrow 9/26/2018 10/9/2018 NAT

4 Escrow 9/26/2018 10/9/2018 NAT

5 Escrow 10/1/2018 10/30/2018 PLOA

6 Escrow 10/2/2018 10/4/2018 NAT

7 Escrow 2/5/2019 4/8/2019 NAT

8 Escrow 4/1/2019 4/25/2019 NAT

9 Escrow 4/22/2019 5/1/2019 NAT

10 Escrow 8/7/2019 8/21/2019 NAT

11 Escrow 8/20/2019 9/4/2019 NAT

12 Title insurer 10/22/2018 12/12/2018 NAT



15 Unfair inducements 11/28/2018 12/18/2018 NAT

16 Unfair inducements 10/4/2018 10/30/2018 PLOA




Type of Complaint Begin Date End Date Action Taken














NAT = No action taken because complaint lacked merit or was used to educate licensee.PLOA = Private letter of admonition issued as warning to licensee

Proposal to Increase Statutory Cap on Costs and Expenses Covered by Annual Assessment

Current statutory cap: Notwithstanding Section 31A-3-103 and subject to Section 31A-2-404, the Title and Escrow Commission by rule shall establish the amount of costs and expenses described under Subsection (3) that will be covered by the assessment, except the costs or expenses to be covered by the assessment may not exceed $100,000 annually. Utah Code § 31A-23a-415(2)(d) (emphasis added). Actual costs and expenses: FY15 - $87,415.93 FY16 - $80,740.96 FY17 - $70,264.08 FY18 - $70,863.11 FY19 - $104,123.34 For FY19, the Department had to transfer out $4,123.34 due to the statutory cap. This was a one-time fix. It can’t be done regularly because the Title Licensee Enforcement Restricted Account is its own line item and the Budget Procedures Act (UCA 63J-1-206(2)(c)(i)) prohibits transfers or subsidies across line items. Recommended increase in statutory cap The current legislative appropriation for the Title Licensee Enforcement Restricted Account is $130,800. To avoid repeated amendments of the statutory cap in the future, the Department recommends an increase to $135,000, a round figure that generally reflects the appropriated amount.

Memorandum To: The Utah Title and Escrow Commission Fr: Reed Stringham, Deputy Insurance Commissioner Re: Proposed amendment of Utah Admin. Code R592-11 Dt: September 11, 2019 At the Commission’s last meeting the Department proposed to amend the rule that requires an annual report from title insurance producers. Utah Admin. Code R592-11. The amendments were intended to: (1) remove requirements for a no-longer-needed controlled business report; (2) remove requirements that duplicated or were not supported by statute; (3) reduce regulatory burden for the industry. The Commission asked the Department to explain the reasons for removing certain requirements. The explanations are highlighted in yellow and are set forth below.

***** Rule R592-11. Title Insurance Producer Annual and Controlled Business Reports. R592-11-1. Authority. This rule is promulgated pursuant to: (1) Section 31A-2-404(2)(a), which requires the Title and Escrow Commission (Commission) to make rules related to title insurance; (2) Section 31A-23a-413, which requires certain title insurance producers to file the annual filing of an annual report containing a verified statement of the financial condition, transactions, and affairs by an agency title insurance producer and an individual title insurance producer who is not an employee of a title insurer or who has not been designated to an agency title insurance producer; (3) Subsection 31A-23a-503(8), which requires the annual filing of a controlled business report; and (4) Subsection 31A-23a-406(1)(g), which requires the maintenance of a physical address in Utah.

Subsection 31A-23a-406(1)(g) requires that a title agency maintain a physical address in Utah. But it does not require that the agency provide proof of that to the Department in an annual written report. Subsection 31A-23a-415(1) already requires a title agency to give notice of its physical location. The Department believes that compliance with this requirement can be more efficiently determined by a Department audit than by an annual written report. R592-11-2. Purpose and Scope. (1) The purpose of tThis rule is to establishes the form requirements of and filing deadline for the Title Insurance Producer Annual Report and Controlled Business Report required by Section 31A-23a-413 and Subsection 31A-23a-503(8)(a). (2) This rule applies to an agency title insurance producer and an individual title insurance producer who is not an employee of a title insurer or who has not been designated to an agency title insurance producer. R592-11-3. Title Insurance Producer Annual Report. (1) The following shall file a Title Insurance Producer Annual Report not later than April 30 of each year if they have conducted title insurance business in the State of Utah within the time period described in R592-11-3(4): (a) an agency title insurance producer; and (b) an individual title insurance producer who is not an employee of a title insurer or who has not been designated to an agency title insurance producer. (2) A Title Insurance Producer Annual Report shall consist of: (a) a balance sheet and an income and expense statement prepared and presented in conformity with generally accepted accounting principles; The Department doesn’t have the resources required to evaluate a balance sheet and an income and expense statement. It is more efficient to require an affirmation that the reported title insurance premium is accurate and is based on appropriate business reports.

(i) title premium, including endorsement income and expenses, shall be reported separately from the escrow income and expenses; The department believes that title insurance agencies are able to determine total title insurance premium accurately and that an additional report of endorsement and escrow income and expenses is not needed. (b) the name and address of each financial institution where a title or escrow trust account is maintained; Better to say, “The number and location of each title or escrow trust account.” (c) proof of financial protection that complies with Subsection 31A-23a-204(2) shall consist of one or more of the following: (i) a copy of the declarations page of a fidelity bond; (ii) a copy of the declarations page of a professional liability insurance policy; or (iii) a copy of the commissioner's approval of equivalent financial protection approved by the commissioner; The law requires that a title agency maintain financial protection. But it does not require that the agency provide written proof of that protection with a written report. The Department believes that compliance with this requirement can be more efficiently determined by a Department audit than by an annual written report. (d) the name of the individual title insurance producer designated as the "qualifying licensee," as provided in 31A-23a-204; and (e) the physical address in Utah maintained by the agency title insurance producer or individual title insurance producer, pursuant to 31A-23a-406(1)(g). The law requires that a title agency maintain a physical address in Utah. But it does not require that the agency provide proof of that to the Department in a written report. The Department believes that compliance with this requirement can be more efficiently determined by a Department audit than by an annual written report.

(3) A title insurance producer may comply with Subsection R592-11-3-(2)(c) does not apply to an attorney exempted under 31A-23a-204(8) by completing and submitting a report in. (4) Thethe Title Insurance Producer Annual Report Form that is available on the department’s website period shall be the preceding calendar year. (5) A Title Insurance Producer Annual Report will be considered protected data if the producer submitting the report requests classification as a protected record in accordance with Sections 63G-2-305 and 63G-2-309. R592-11-4. Controlled Business Report. (1) The following that conduct title insurance business in the State during the time period described in R592-11-4(2)(a) shall file an annual Controlled Business Report not later than April 30 of each year: (a) an agency title insurance producer; and (b) an individual title insurance producer who is not an employee of a title insurer or who has not been designated to an agency title insurance producer. (2)(a) The Controlled Business Report period shall be the preceding calendar year and shall contain the information required in Subsection 31A-23a-503(8)(a); and (b) contain the name, address, and percentage of ownership of each owner. (3) A Controlled Business Report is a public record upon filing. R592-11-5. Electronic Filing of Title Insurance Producer Annual Report and Controlled Business Report. (1) The Title Insurance Producer Annual Report and the Controlled Business Report shall be submitted together electronically using the Department of Insurance's secure file upload site located at https://forms.uid.utah.gov/insurance/fileUploads/. (a) Registration may be required. (2) The Title Insurance Producer Annual Report and the Controlled Business Report shall be submitted not later than

April 30 of each year as an attachments to the Title Insurance Agency Producer Annual Reports Transmittal Form. (3) The following report forms, which are is available on the department's website, shall be used to submit the Title Insurance Producer Annual Report and the Controlled Business Report: (a) Title Insurance Producer Annual and Controlled Business Reports Transmittal form; and (b) Controlled Business Report form. (4) Actual copies of the forms may be used or may be adapted to a particular word processing system, however, if: adapted, (a) the content, size, and font shall be similar; and shall be: (a) the form is converted to one portable document format or PDF prior to submission; and (cb) the form is submitted in the order listed on the Annual Report Checklist located at http://insurance.utah.gov/agent/title/agency-reports-information.php. R592-11-6. Penalties. A person found to be in violation of this rule shall be subject to penalties as provided under Section 31A-2-308. R592-11-57. Enforcement Date. The commissioner will begin enforcing this rule 45 days from the rule's effective dateThe commissioner will begin enforcing this rule on its effective date. R592-11-68. Severability. If any provision of this rule or its application to any persons or circumstances is for any reason held to be invalid, the remainder of the rule and the application of the provision to other persons or circumstances shall not be affected thereby. If any provision or clause of this rule or its application to any person or situation is held invalid, that invalidity shall not affect any other provision or application of this rule which can be given effect without the invalid provision or application, and to this end the provisions of this rule are declared to be severable.

Title Insurance Producer Annual Report Form

Date: Title Insurance Producer (“Producer”): Address and Telephone: Total Annual Title Insurance Premium: Trust Account Location and Number:

Verification

Under criminal penalty of the state of Utah, I declare the following: (1) I hold the position of ________________ with the Producer and am authorized to make this Title Insurance Producer Annual Report on its behalf. (2) The information set forth in this Title Insurance Producer Annual Report is correct based on my personal knowledge or based on my reasonable belief after diligent inquiry. (3) The Producer earned the above Total Annual Title Insurance Premium during the prior calendar year. (4) The above Total Annual Title Insurance Premium was derived from an income and expense statement prepared in conformity with generally accepted accounting principles. (5) The Producer does/does not request that the above Total Annual Title Insurance Premium and Trust Account Location and Number be kept confidential pursuant to Utah Code §§ 63G-2-305 and 63G-2-309. For the following reasons, this information qualifies as a trade secret described in § 63G-2-305(1) and/or as commercial or nonindividual financial information described in § 63G-2-305(2): _______________________________ Name:

insurance department · 16/09/2019 · james swan (insurer, salt lake county) vice chair, alison...

Documents