March 10, 1999
TEX. INS. CODE Article 9.58 directs the Department of Insurance to establish continuing education requirements for title agents and escrow officers. Procedural Rule P-28 sets out those requirements.
Questions have been brought to my attention about how to apply those requirements to individual partners in a partnership title agency, particularly inactive partners who are merely investors with no active participation in the agency, apart from their investment.
Accordingly, the continuing education requirements for a title agent will not be applied to individual partners in a partnership, provided those partners are investors only, with no active involvement in the agency. The licensee must submit an affidavit acceptable to the Department, signed by all partners, active and inactive, swearing or affirming that the investor-partner is, in fact, an investor only, with no active involvement in the agency.
For currently licensed partnerships with inactive partners, the affidavit shall be submitted with the title agent license renewal application. For new partnership title agent applicants with inactive partners, the affidavit shall be submitted with the license application.
Fingerprint requirements will still apply to all individual partners of a partnership title agent applicant. Criminal history questions will still apply to all individual partners of a title agent applying for a renewal. Continuing education requirements will still apply to anyone acting as an escrow officer.
Should you have any questions, please do not hesitate to contact us.
_______________________Robert R. Carter, Jr.
Texas Department of Insurance - Title Division