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You are here: Home . rules . 2004 . 0723A-059
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Subchapter A. Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas

28 TAC §9.1

Subchapter C. Texas Title Insurance Statistical Plan

28 TAC §9.401

The Texas Department of Insurance proposes amendments to §§9.1 and 9.401 which concern the adoption by reference of certain amendments to the Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas (Basic Manual) and to the Texas Title Insurance Statistical Plan (Statistical Plan). The proposed amendment to §9.1 updates the date of the amended Basic Manual. The amendments to the Basic Manual adopt a new form T-37A, Immediately Available Funds Procedure Agreement (Agent Designation for Federally-insured Lender), to include a designated agent of a federally-insured lender as a party to an agreement that defines procedures to make funds immediately available among a financial institution, a title company, and a federally-insured lender in the closing of a mortgage loan. The proposed new form will accommodate mortgage lending practices involving warehouse lenders while providing safeguards that funds are available. In conjunction with the proposed new form, amendments are also being proposed to procedural rule P-27, Disbursement from Escrow or Trust Fund Accounts, to conform the language of this procedural rule for use with the new form. The proposed amendment to §9.401 updates the date of the amended Statistical Plan. The amendments to the Statistical Plan update the codes and other reporting requirements that have occurred since the last two Texas Title Insurance Biennial hearings. Adopting new forms and updated codes and reporting requirements will facilitate the administration and regulation of title insurance in this state and provide for more efficient reporting of statistical data by title companies.

The department has filed a copy of the proposed items with the Secretary of State´s Texas Register section. Persons desiring copies of the proposed items can obtain them from the Office of the Chief Clerk, Texas Department of Insurance, 333 Guadalupe Street, P.O. Box 149104 , Austin , Texas , 78714-9104 . To request copies by phone, please contact Sylvia Gutierrez at 512/463-6327.

Robert R. Carter, Jr., deputy commissioner for the title division, has determined that, for each year of the first five years the amendments are in effect, there will be no fiscal impact on state or local government as a result of enforcing or administering the amendments. Mr. Carter has also determined that there will be no measurable effect on local employment or the local economy.

Mr. Carter has also determined that for each year of the first five years the amendments are in effect there are a number of public benefits anticipated as a result of the amendments to the Statistical Plan and Basic Manual. Allowing an agent of a federally-insured lender to participate in an immediately available funds procedure agreement will allow for more efficient closing of transactions while providing safeguards that funds are available and adapting such agreements to current business practices. The updating and revising of the Statistical Plan allow for consistent administration and facilitate the efficiency of the department in regulating the title industry and also facilitate the handling of reporting requirements by title companies. The new form and amended procedural rule and conforming the Statistical Plan with changes from the last two Texas Title Insurance Biennial hearings will impose no additional regulatory costs on companies that decide to participate in the title insurance market, and the costs of reproducing the new form, estimated to be no more than $.15 per form for the cost of a photocopy, should be fully compensated by the existing premium schedule. The department anticipates no differential impact between small, large, and micro-businesses as a result of compliance with the proposal. The cost per hour of labor should not vary between small, large, and micro-businesses. Further, it is neither legal nor feasible to exempt small or micro-businesses or to waive compliance with the rule considering the purpose of the efficient regulation of title insurance for which the amendments are to be adopted.

To be considered, written comments on the proposal must be submitted no later than 5:00 p.m. on September 7, 2004 , to Gene C. Jarmon, General Counsel and Chief Clerk, Mail Code 113‑2A, Texas Department of Insurance, P.O. Box 149104 , Austin , Texas 78714‑9104. An additional copy of the comments must be submitted simultaneously to Robert R. Carter, Jr., Deputy Commissioner, Title Division, Mail Code 106-2T, Texas Department of Insurance, P.O. Box 149104 , Austin , Texas 78714‑9104. Request for a public hearing should be submitted separately to the Chief Clerk's office.

The amended sections are proposed pursuant to Insurance Code, Articles 9.07 and 9.21, and §36.001. Article 9.07 authorizes and requires the commissioner to promulgate or approve rules and policy forms of title insurance and otherwise to provide for the regulation of the business of title insurance. Article 9.21 authorizes the commissioner to promulgate and enforce rules prescribing underwriting standards and practices, and to promulgate and enforce all other rules necessary to accomplish the purposes of chapter 9, concerning regulation of title insurance. Section 36.001 of the Insurance Code provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

The following statutes are affected by this proposal: Insurance Code Articles 9.07 and 9.21

Subchapter A. Basic Manual of Rules, Rates, and Forms

for the Writing of Title Insurance in the State of Texas

§9.1. Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas . The Texas Department of Insurance adopts by reference the Basic Manual of Rules, Rates, and Forms for the Writing of Title Insurance in the State of Texas as amended effective October 1, 2004 [April 1, 2004]. The document is available from and on file at the Texas Department of Insurance, Title Division, Mail Code 106-2T, 333 Guadalupe Street, Austin, Texas 78701-1998.

Subchapter C. Texas Title Insurance Statistical Plan

§9.401. Texas Title Insurance Statistical Plan. The Texas Department of Insurance adopts by reference the rules contained in the Texas Title Insurance Statistical Plan as amended effective October 1, 2004 [ April 4, 2002 ]. This document is published by the Texas Department of Insurance and is available from the Property and Casualty Data Services Division, Mail Code 105-5D, Texas Department of Insurance, William P. Hobby, Jr. State Office Building, 333 Guadalupe Street, P.O. Box 149104 , Austin , Texas 78714-9104 .



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