Basic Manual of Title Insurance, Section IV (continued)

Title Manual Main Index | Section IV Index

Includes Procedural Rules P-28 Effective 01/03/2014 | P-29 | P-30

P-28. REQUIREMENTS FOR CONTINUING EDUCATION FOR LICENSEES AND PROFESSIONAL TRAINING FOR MANAGEMENT PERSONNEL

GENERAL
1. DEFINITIONS. In this rule:
  1. "Licensee" means any individual required to complete continuing education under Texas Insurance Code §2651.204 or §2652.058.
  2. "Management personnel" means each individual who is a designated on-site manager or who is responsible for the management of the day-to-day operations of the title insurance agent or direct operation in Texas.
  3. "Provider" means an entity, association, or individual that offers title insurance continuing education or professional training courses and is:
    1. a statewide title insurance association, statewide title insurance agents' association or professional association, or a local chapter of a statewide title insurance or title insurance agents' association or professional association;
    2. an accredited college or university;
    3. a career school or college as defined by Texas Education Code §132.001;
    4. the State Bar of Texas;
    5. an educational publisher;
    6. a title insurance company authorized to do business in Texas, or a company owning one or more title insurance companies authorized to do business in Texas;
    7. a Texas public school system; or
    8. an individual appointed as an instructor by an entity or association described in this paragraph.
  4. "TDI" means the Texas Department of Insurance.
  5. "TDI Administrator" means an independent contractor contracted by TDI under Texas Insurance Code §2652.058 and §4004.104.
2. FORMS. All of the forms referred to in this rule are available on the TDI website and on request from TDI. Forms may be submitted electronically if such submission is available.
3. FEES. TDI or the TDI Administrator collects the nonrefundable fees established in 28 Texas Administrative Code §19.1012(b).
COURSES AND PROVIDERS
1. PROVIDER REGISTRATION.
  1. A provider applicant seeking initial registration or renewal of a registration as a provider of title insurance courses must submit to TDI or the TDI Administrator an application on a form provided by TDI and the applicable provider original registration or renewal fee under 28 Texas Administrative Code §19.1012(b)(1). TDI may require the following items in order to approve or disapprove a provider's registration application:
    1. the provider applicant's name, federal tax identification number, physical address, mailing address, and website address;
    2. the name, telephone number, and email address of the provider applicant's designated authorized provider representative;
    3. the name of the provider applicant's state of incorporation, domicile, or residence if the provider applicant is a corporation, partnership, limited liability company, or other legal entity not otherwise licensed or regulated by TDI;
    4. all names used by the provider applicant to provide insurance related education courses in Texas;
    5. a description of the provider applicant's student record system, including a description of the methods of documenting attendance;
    6. the method used by the provider applicant for evaluating instructors;
    7. a statement as to whether or not the provider applicant has had any certification or approval for a professional continuing education course, prelicensing education course, or a certification course revoked, suspended, or placed on probation, whether by agreement or as ordered in an administrative or judicial proceeding, by a court, financial or insurance regulator, or other agency of Texas, another state, or the United States;
    8. a statement certifying that the provider applicant will comply with all provider and course requirements set forth in Procedural Rule P-28; and
    9. other information as specified by TDI.
  2. Failure to submit a completed application and all of the requested items will result in the rejection of the application.
  3. Providers may only obtain one registration and may, but are not required to, certify and offer continuing education courses.
  4. A provider registration expires two years after the date of issuance. The provider may renew its registration by complying with Procedural Rule P-28.II.A.1 up to 90 days in advance of the expiration date.
  5. Within 150 calendar days from the effective date of this rule, providers who are currently offering certified title insurance continuing education courses, but are not registered as providers, must apply for registration. Providers may not apply for the certification of a continuing education course until the provider has applied for registration and been approved.
2. COURSE CERTIFICATION.
  1. Providers must certify each title insurance continuing education course prior to offering the course by submitting to TDI or the TDI Administrator an application on a form provided by TDI and the applicable submission fee under 28 Texas Administrative Code §19.1012(b)(2). TDI may require the following items in order to approve or disapprove a course's certification application:
    1. a certification by the provider that the course meets the minimum requirements of Procedural Rule P-28;
    2. a statement identifying the knowledge, skills, or abilities the licensee is expected to obtain through completion of the course;
    3. instruction method and instructional medium;
    4. a detailed course outline with major topics and sub-topics, including the amount of time spent on each major topic;
    5. the method of evaluation by which the provider measures how effectively the course meets its objectives and provides for student input;
    6. the total number of course hours requested for approval, including:
      1. the number of hours included in the total number of course hours requested for approval that will cover ethics topics;
      2. the method the applicant is using to determine the number of course hours;
      3. if using the method specified in Procedural Rule P-28.II.I.2.a, a list of the licensees and the time it took each licensee to complete the course; and
      4. if using the method specified in Procedural Rule P 28.II.I.2.b, a list of approved times in all other applicable states;
    7. a sample of the certificate of completion providers will issue to students under Procedural Rule P-28.II.H.1;
    8. if applying for certification of a classroom course that will consist of other than classroom instruction, lectures, or seminars, an explanation of how the course complies with Procedural Rule P-28.II.F.1;
    9. if applying for certification of a classroom equivalent course, an explanation of how the course complies with Procedural Rule P-28.II.F.2 and II.G.2.
    10. if applying for certification of a self-study course, a copy of one exam;
    11. a copy of the provider's refund policy; and
    12. any other information requested by TDI or the TDI Administrator.
  2. Failure to submit a completed application and all of the requested items will result in the rejection of the application.
  3. Providers must notify TDI or the TDI Administrator when a course is discontinued or no longer active, and when there is a change in the provider's name, address, or telephone number, in order for TDI or the TDI Administrator to maintain an up-to-date registry of courses and to prepare, if courses are to be available to the public, a list of such courses on request.
  4. A course certification expires two years after the date of certification. If more than 25 percent of the course is changed, or if any change affects the course content breakdown as previously certified by TDI or the TDI Administrator, the course is considered revised and the provider must submit the course to TDI or the TDI Administrator for certification as a new course.
3. COURSE ASSIGNMENT.
  1. A registered provider may request that a certified course be assigned to another registered provider by completing and submitting to TDI or the TDI Administrator a course assignment agreement form provided by TDI. TDI may require the following items in order to approve or disapprove a course's assignment:
    1. the assignee and assignor providers' names and registration numbers;
    2. the certified course's name, certification number, and expiration date;
    3. a statement regarding whether there will be any of the following changes to the certified course:
      1. a change of more than 25 percent of the certified course's content;
      2. a change to the number of certified course credit hours;
      3. a change to the type of certified course credit hours; or
      4. if for a self-study course, using an examination different from the examination developed by the assignor;
    4. the effective date of the assignment;
    5. the termination date of the assignment; and
    6. any other information requested by TDI or the TDI Administrator.
  2. A certified course may not be assigned, unless:
    1. both assignee and assignor are registered providers under Procedural Rule P-28.II.A;
    2. the course is not modified by:
      1. changing more than 25 percent of the certified course content;
      2. changing the number of certified course credit hours;
      3. changing the type of certified course credit hours; or
      4. if a self-study course, using an examination different from the examination developed by the assignor; and
    3. the assignment term is for not more than two years.
  3. The assignor must deliver all information required for the certification of the course under Procedural Rule P-28.II.B to the assignee. The assignee must maintain all information required for the certification of the course for the period of assignment and must submit such information to TDI or the TDI Administrator on request.
  4. Assignment of a certified course does not affect the certification period of the course.
  5. Assigned courses are considered courses of the assignee for purposes of Procedural Rule P-28 and the assignee must comply with all requirements of Procedural Rule P 28 in relation to the assigned course, except that an assignee may not assign an assigned course.
  6. TDI may not act on behalf of, or at the request of, any party in any dispute over a course assignment.
  7. TDI will consider an assignment terminated only on the following events:
    1. the date the assignment terminates as specified in the course assignment agreement form;
    2. the written and signed request of both the assignor and assignee, which may be granted or given to an assignor by the assignee in advance or as a condition of assignment;
    3. termination of the assignee's registration as a provider;
    4. expiration of the course certification; or
    5. the order of a court of competent jurisdiction finding that the assignee is not authorized to present the course or that the assignment agreement is terminated.
  8. Assignees may not offer an assigned course after the course's certification expires, unless the originating assignor recertifies the course.
4. COURSE CRITERIA.
  1. The purpose of continuing education is to increase the licensee's professional competence with regard to title insurance.
  2. The course must have a stated purpose that reflects the goal(s) or the overall intent of the course.
  3. The course must have specific written learning objectives, which support the achievement of the stated purpose of the course. The learning objectives are the desired outcomes for the learning process and identify the knowledge, skills, or aptitudes the licensee is expected to obtain.
  4. The course must have a method of evaluation that measures how effectively the course meets its objectives.
  5. Persons conducting a course should be knowledgeable and well versed on the topic(s), and when conducting a classroom course be able to conduct/instruct a class and provide appropriate feedback on questions.
  6. The course content must be designed to increase the licensee's knowledge and understanding of one or more of the following:
    1. title insurance principles and coverages;
    2. title insurance law, rules, and regulations;
    3. recent and prospective changes in coverages, law, regulations, and practice;
    4. mortgage lending and closing transactions;
    5. land title search or examination;
    6. management of the licensee's title insurance business; or
    7. duties and responsibilities of the title insurance agent or escrow officer, including ethical conduct.
  7. A State Bar of Texas or State Board of Public Accountancy course is acceptable as a title insurance continuing education course as long as the course includes material pertaining to the business of title insurance, real property, surveys, mortgage lending, ethical conduct, or transfer of land titles.
  8. Each course must be reviewed every two years by the provider and updated to remain relevant to the professional development of a licensee.
5. INSTRUCTOR REQUIREMENTS.
  1. Providers must certify that course instructors are experienced and qualified in the subject to be taught, and certify that the instructors meet at least one of the following instructor criteria:
    1. has been in the practice of teaching or co-teaching title insurance courses for at least three of the last five years and has the knowledge and experience in the subject the instructor will teach;
    2. has been properly licensed as a licensee subject to continuing education requirements under the Texas Title Insurance Act or similar statutes of another state or jurisdiction for at least five years;
    3. is the holder of a designation certification recognized by TDI which relates directly to the subject the instructor will teach;
    4. has been engaged in a recognized profession that is pertinent to the subject areas to be taught, including, but not limited to, Certified Public Accountants or members of a state bar; or
    5. is or has been employed by a title insurance company, title insurance agent, or direct operation for the last five years and has knowledge and experience in the subject the instructor will teach.
  2. A provider must maintain, as a part of the provider's records, a written statement from each instructor certifying that the instructor is qualified as an instructor, the basis of qualification, and that the instructor will comply with all applicable course requirements.
6. TYPES OF COURSES. Continuing education courses must consist of one of the following:
  1. Classroom Courses. Classroom courses may include real time lectures, seminars, audio, video, computer-based instruction, webinars, and teleconferences that meet the following requirements:
    1. A disinterested third party attendant, an instructor, or a disinterested third party using visual observation technology must visually monitor attendance either inside or at all exits to the course presentation area at all times during the course presentation.
    2. At least three students and an instructor must be involved in each presentation of the course; however, in circumstances involving remote presentations, all students and the instructor do not need to be in the same location. In the case of presenting recorded or text materials, the instructor making the live course presentation does not have to be the same instructor included on the recorded presentation or who prepared the text materials. Student attendees are not required to be licensees.
    3. Question and answer and discussion periods must be provided by:
      1. an instructor making a live presentation of the course to licensees in the same room or via real-time live audio or audio-visual connection, which must allow for immediate student inquiries and responses with the presenting instructor; or
      2. an instructor who is present for the entire remote, recorded, or computer-based course presentation to students in the same room, which must allow for immediate inquiries and responses of students to the instructor.
    4. The course pace is set by the instructor.
    5. The course does not allow for independent completion of the course by students.
  2. Classroom Equivalent Course. This type of course may consist of a digital media presentation, including internet or other computer-based presentations, that may be completed independently or in a group setting.
  3. Self-study Courses. This type of course is primarily a text-based course, but may include audio, video, computer-based instruction, or any combination of these, in an independent study setting designed in such a manner as to ensure that the course cannot be completed by the typical enrollee in less time than the period for which the course is certified.
7. COURSE REQUIREMENTS FOR SUCCESSFUL COMPLETION.
  1. For classroom courses, providers must use, at a minimum, attendance rosters or attendance forms to certify attendance and completion of a course. Each student must attend at least 90 percent of the course. Providers must establish a means to ensure that each student attended at least 90 percent of the course to receive credit. Attendance records must include, at a minimum, sign-in and sign-out sheets or signed attendance forms, and the legible names, addresses, and TDI license number of each student in attendance.
  2. For classroom equivalent courses, providers must use a method to reasonably authenticate a student’s identity and demonstrate participation to determine completion of a course. Methods of demonstrating participation may include, but are not limited to:
    1. multiple-choice questions at the end of the course that reasonably cover the topics presented;
    2. the display of unique keys, passwords, or symbols during the presentation that must be provided by the student at the end of a course; or
    3. technological elements that ensure a student has watched and listened to an entire video and audio recording.
  3. For self-study courses, providers must use a written, online, or computer-based examination as a means of completion for the course. Providers are not required to monitor the final examination. Course records for each examination attempt must include, at a minimum, the date the exam was taken, the final examination score, the examination version used, the legible name, address, and the TDI license number of each enrollee. A final examination must meet the following criteria:
    1. Final examination questions may not be the same or substantially the same questions the enrollee previously encountered in the course materials or review exams.
    2. Security measures must be in place to maintain the security and integrity of the examination and ensure that the enrollee is the individual who took the examination.
    3. Answers to the examination may not be given to the enrollees at any time before, during, or after the course.
    4. Examinations must be graded by an authorized staff member.
    5. Enrollees are allowed to retake an examination if a 70 percent passing score is not achieved. The retest must be an alternate examination consisting of different questions from the original examination.
    6. Final examinations must consist of three exams which are distributed alternatively to enrollees of the course, and are revised/updated every two years by the provider consistent with the course update/revision.
    7. The final examination must be a comprehensive examination of the course and thoroughly test the enrollee's knowledge of the content of the course.
    8. The final examination must consist of questions that do not give or indicate an answer or correct response and are the following types:
      1. short essay questions requiring a response of five or more words;
      2. fill in the blank questions requiring a response from memory and not from an indicated list of potential alternatives; or
      3. multiple choice questions stemming from an inquiry with at least four appropriate potential responses and for which "all of the above" or "none of the above," or similar response, is not an appropriate option.
    9. Each final examination must consist of at least 10 questions for each hour of credit. Providers may, at their discretion, have a greater number of final examination questions.
    10. During final examinations, enrollees may use course materials or personal notes, but may not use another person's notes, answers, or otherwise receive assistance in answering the questions from another person.
    11. Enrollees must mail or deliver the completed final examination directly to the provider.
8. PROOF OF COURSE COMPLETION.
  1. Providers must issue certificates of completion to students who successfully complete a certified course within 30 calendar days of the completion of the course if requested by the student. The provider must ensure that the person receiving the certificate is the student who took the course. Only the provider of the course or a third-party vendor of the provider may prepare, print, or complete a certificate of completion. A certificate of completion must include the following:
    1. a statement that the course is for title insurance continuing education;
    2. the provider's name and provider number;
    3. assignee's name and provider number, if applicable;
    4. course name;
    5. total number of approved credit hours and the number of approved ethics credit hours;
    6. date of course completion; and
    7. the TDI license number, if applicable, and name of the student completing the course.
  2. The provider must report course completions in electronic format to TDI or the TDI Administrator within 30 calendar days of course completion.
9. CALCULATION OF CREDIT HOURS.
  1. For a classroom course or classroom equivalent course, TDI will award up to 10 hours of credit for any one course. TDI will award credit at a rate of one hour for every 50 minutes of actual instruction time. All classroom courses must be at least one hour of credit in length. TDI will award additional partial hours of credit in half-hour increments with all periods of less than 25 minutes awarded no additional credit and periods of less than 50 minutes awarded one half-hour of additional credit. Actual instruction time is considered the amount of time devoted to the actual instruction/reading of the topic, and does not include breaks, meals, introductions of speakers, explanatory or preparatory instructions, or evaluations of the course.
  2. For a self-study course, TDI will award up to five hours of credit for any one course. A self-study course must be at least one hour of credit, 50 minutes, in length. TDI will award additional partial hours of credit in half-hour increments with all periods of less than 25 minutes awarded no additional credit and periods of less than 50 minutes awarded one half-hour of additional credit. Providers may not use the final examination or pre-tests for determining course hours. The provider must determine the number of credit hours using one of the following methods:
    1. The average completion time of the individual course completion times of at least five licensees. The licensees used to calculate the average must be randomly selected. If the provider uses this method to determine the number of credit hours, the provider must retain the names, current TDI license numbers, and completion times of all licensees that were used by the provider.
    2. The average number of hours of the credit hours assigned by all other states in which the course is certified or approved. A provider may not use this method to determine the number of credit hours unless the course is approved in at least three other states. Providers may not include any hours allowed by other states for sales and marketing topics in calculating the average.
  3. For applicable State Bar of Texas or State Board of Public Accountancy courses, TDI will award up to 10 credit hours for any one course. The number of awarded credit hours is determined by the number of credit hours approved by the State Bar of Texas or the State Board of Public Accountancy, but only those hours that pertain to title insurance, real property, surveys, mortgage lending, ethical conduct, or transfer of land titles. TDI will award ethics credit hours for courses or portions of courses approved by either the State Bar of Texas or the State Board of Public Accountancy for ethics credit. No self-study hours approved by the State Bar of Texas or the State Board of Public Accountancy will be accepted.
  4. TDI will award credit hours for the successful completion of accredited college, university, or law school courses. TDI will award eight credit hours per semester hour approved for the course by the college, university, or law school, but only for the portion of those hours which pertain to title insurance, real property, surveys, mortgage lending, ethical conduct, or the transfer of land titles.
  5. TDI will award credit hours for licensees who instruct any portion of a certified continuing education course. The number of credit hours awarded is determined by the number of hours of course instruction up to a maximum of the number of credit hours approved for the course, plus an equal number of credit hours is awarded for course preparation. The provider is responsible for reporting the number of hours of course instruction.
  6. TDI will not award credit hours for instructing or completing the same continuing education course more than once within the same reporting period.

CONTINUING EDUCATION COMPLIANCE

APPLICABILITY AND REQUIRED CREDIT HOURS.

Licensees must complete 10 credit hours of continuing education for each reporting period, unless otherwise exempt. Of the 10 required credit hours, licensees must earn at least two ethics credit hours. Credit hours may only be applied to a single reporting period and excess hours may not be carried forward to the next reporting period.
The reporting period is from the license issue date or last renewal date to the license expiration date.

New licensees with initial reporting periods of less than 24 months must complete a prorated amount of continuing education credit hours as follows:

License period	Total required hours	Ethics
Less than 6 months	0	0
6 months up to and including 7 months	2	2
8 months up to and including 9 months	3	2
10 months up to and including 11 months	4	2
12 months up to and including 14 months	5	2
15 months up to and including 16 months	6	2
17 months up to and including 19 months	7	2
20 months up to and including 21 months	8	2
22 months up to and including 23 months	9	2
(INCREMENTS ARE IN FULL MONTHS – DO NOT COUNT PARTIAL MONTHS)

If a licensee is unable to attend classroom or classroom equivalent courses with reasonable convenience due to the remote location of the licensee's residence or business, the licensee may complete up to 50 percent of the required continuing education credit hours through self-study courses.
Licensees must complete at least 50 percent of their required continuing education credit hours in classroom or classroom equivalent courses, regardless of any other license type held by the licensee.

CONTINUING EDUCATION EXEMPTIONS AND EXTENSIONS.
1. Licensees who meet the criteria of illness, medical disability, or circumstances beyond the control of the licensee may apply for an extension of time for the licensee to comply with the continuing education requirements or an exemption from all or part of the requirements. Business reasons do not constitute circumstances beyond the control of the licensee. TDI will establish the duration of an extension when it is granted. If the circumstances supporting an extension continue beyond the granted extension period, the licensee may reapply for an exemption or extension. The licensee's application must include the following:
  1. a written statement of the exact nature of the illness, medical disability, or other extenuating circumstances beyond the control of the licensee that have prevented or will prevent the licensee from completing the required hours within the reporting period;
  2. evidence regarding the illness, medical disability, or circumstances beyond the control of the licensee;
  3. a written assessment of whether the condition is temporary or permanent, or if it is unknown whether the condition is temporary or permanent;
  4. a written statement as to whether the licensee will be able to perform activities including any acts of a title insurance agent or escrow officer during the exemption or extension period being requested;
  5. the estimated date when the licensee will be able to perform any activities including any acts of a title insurance agent or escrow officer in accordance with the medical reports or other documents pertaining to circumstances beyond the control of the licensee; and
  6. any other information that may be of assistance in evaluating the request.
2. A military service member, military veteran, or military spouse, as defined by Texas Occupations Code §55.001, may apply under 28 Texas Administrative Code §19.803 for, and be granted, an extension to or exemption from the continuing education requirements of Procedural Rule P-28.III.A.
EVIDENCE OF COMPLIANCE.
1. If a course completion is not reported to TDI by the provider and reflected in TDI’s records, licensees must maintain evidence that the licensee completed the course for a period of at least four years from the date of course completion for purposes of investigation or audit and must continue to maintain evidence of compliance during any period in which the licensee has been notified by TDI or the TDI Administrator that the records or the licensee's compliance is the subject of an investigation or audit. Evidence of licensee compliance is subject to the review of TDI at any time.
2. Evidence of course completion may include a certificate of completion from a provider or a transcript from a college, university, or law school.
3. Providers must maintain all continuing education records, course certification records, attendance records, and course materials, including final examinations, for a period of at least four years. TDI or the TDI Administrator may review these records at any time. Providers must notify TDI if there is a change to the provider's information of record.
4. At the request of TDI or the TDI Administrator, providers must furnish course completion information in an acceptable electronic format to TDI or the TDI Administrator.
5. TDI or the TDI Administrator may conduct audits of any certified course or provider without prior notice to the provider. Staff from TDI or the TDI Administrator may attend courses without identifying themselves as employees or representatives of TDI. If compliance records are audited or reviewed and the validity or completeness of the records are questioned, the provider is allowed 30 calendar days from the date of notice to correct discrepancies or submit new documentation.
6. TDI will rely on provider submitted course completion records for determining and publishing continuing education compliance. A licensee must inform TDI of any inaccuracy in the licensee's compliance record.
FAILURE TO COMPLY.
1. A licensee's failure to comply with the requirements of Procedural Rule P-28 in the absence of a valid exemption or extension, or falsification of records of compliance by the licensee, may subject the licensee to disciplinary action after notice and hearing. Disciplinary action may include a fine, suspension, revocation, or cancellation of a license in accordance with Texas Insurance Code Chapter 82, and any other applicable laws or statutes.
2. A provider's failure to comply with the requirements of Procedural Rule P-28, or falsification of records of compliance by the provider, may subject the courses of the provider to be removed from the list of certified courses. A provider may also be subject to disciplinary action after notice and hearing. Disciplinary action may include a fine, suspension, or revocation of the provider's registration in accordance with Texas Insurance Code Chapter 82, and any other applicable laws or statutes.
3. If a licensee does not meet the licensee's continuing education requirements by the 90th day after the licensing renewal date, the licensee's license is not eligible for renewal.

PROFESSIONAL TRAINING PROGRAM FOR MANAGEMENT PERSONNEL
1. MANAGEMENT PERSONNEL REQUIREMENTS.
  1. Except as provided in Procedural Rule P‑28.IV.A.2 below, title insurance agent and direct operation management personnel must complete a professional training course that meets the requirements of Procedural Rule P‑28.IV.B within 12 months immediately preceding the date of filing of the title insurance agent or direct operation license application.
  2. An individual is exempt from the professional training requirements of Procedural Rule P-28.IV.A, if the individual has held in Texas for at least five years a position as management personnel with a title insurance agent, direct operation, or a comparable position.
  3. Management personnel who are not exempt under the provisions of Procedural P-28.IV.A.2 must submit a provider-issued certificate of completion demonstrating compliance with Procedural Rule P-28.IV.A.1 with their license application.
  4. Management personnel who are not exempt under the provisions of Procedural Rule P-28.IV.A.2 must maintain proof of completion of a professional training course for a period of four years from the date of completion of the course. On request, management personnel must provide proof of completion of the professional training course to TDI or the TDI Administrator.
2. PROVIDER AND COURSE REQUIREMENTS.
  1. Providers of professional training courses must comply with the registration requirements under Procedural Rule P‑28.II.A before offering a professional training course for management personnel.
  2. The provider must comply with the course certification requirements in Procedural Rule P-28.II.B.
  3. A professional training course must be at least eight hours in length.
  4. A professional training course must cover the following subjects:
    1. the basic principles and coverages related to title insurance;
    2. recent and prospective changes in those principles and coverages;
    3. applicable rules and laws;
    4. proper conduct, including ethical conduct, of the licensee's title insurance business;
    5. accounting principles and practices and financial responsibilities and practices relevant to title insurance; and
    6. the duties and responsibilities of a title insurance agent or direct operation.
  5. Providers of professional training courses may assign courses under Procedural Rule P-28.II.C.
  6. Providers of professional training courses must comply with Procedural Rules P‑28.II.E and G.
  7. Providers of professional training courses must issue certificates of completion to all students in compliance with Procedural Rule P-28.II.H.1, except the certificate of completion must include a statement that the course is for professional training for title insurance agent or direct operation management personnel.
  8. Professional training course credit hours will be calculated under Procedural Rule P-28.I.

Title Manual Main Index | Section IV Index

Procedural Rule P-29 has been repealed and the language has been reintroduced in P-20. C. 1.

Title Manual Main Index | Section IV Index

P-30. Guaranty Assessment Recoupment Charge

Whenever an assessment has been made by the Commissioner upon title insurance companies (the "Assessed Companies") pursuant to Section 7 of Article 9.48, Insurance Code, and the Board has promulgated a special additional charge of up to 1% of a subsequent year's premium rates, pursuant to Section 15 of Article 9.48, to permit the Assessed Companies to recoup a portion of such assessment, the special additional charge shall be collected, distributed and accounted for in the following manner:

The special additional charge (hereinafter referred to as the "Guaranty Assessment Recoupment Charge" or "Recoupment Charge") shall be collected upon every title insurance policy, whether issued separately or simultaneously, and every other title insurance insuring form for which a premium is charged, including, but not limited to, endorsements and construction loan binders. It shall be collected directly from the persons paying the premiums for the policies and forms by all title insurance agents (including all insurers' direct operations and all title attorneys as defined in Section 2(d), Article 9.56, Insurance Code) and shall be remitted by such agents to the Texas Title Insurance Guaranty Association (the "Association") quarterly, along with the agent's remittance form, in accordance with the following schedule:
1. those funds collected during the first calendar quarter shall be remitted on or before the next May 1;
2. those funds collected during the second calendar quarter shall be remitted on or before the next August 1;
3. those funds collected during the third calendar quarter shall be remitted on or before the next November 1; and,
4. those funds collected during the fourth calendar quarter shall be remitted on or before the next February 1.
This charge shall be disclosed as a separate itemized charge entitled "Guaranty Assessment Recoupment Charge" on the closing/settlement statement, or, if a closing/settlement statement is not used, on the billing for the endorsement, binder or other insuring form. The agent shall forthwith deposit all Recoupment Charge funds into an audited escrow or trust account, and, for that purpose, may use the same account into which it deposits the State of Texas Policy Guaranty Fees. The agent is responsible for the actual remittance of such funds to the Association, and must maintain an accurate record of the amount of Recoupment Charge funds it has collected, the amount it is holding on deposit and the amount it has remitted.
Within thirty days after each of the dates mentioned in paragraph (1), above, the Association shall distribute to each Assessed Company that company's pro rata share of the Recoupment Charge funds so collected, according to the portion of the assessment that company has paid.
The Association shall furnish to each Assessed Company during the month of January each year a written statement on Form T-G3 with respect to any assessment paid, or recouped through a Recoupment Charge, in whole or part, by such company within the preceding calendar year. In the event the Company has made payments or received Recoupment Charge funds with respect to more than one assessment during such year, the Association shall furnish a separate Form T-G3 pertaining to each assessment.
Each Assessed Company may file the Association's statement(s) on Form T-G3 with the company's premium tax return, in support of its claiming the tax credits authorized by Section 15 of Article 9.48, Insurance Code.

Continue to P-31. Authorized Execution of Directly Issued Policy

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