S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5894
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                     March 5, 2015
                                      ___________
       Introduced  by M. of A. KAVANAGH, CLARK, MARKEY -- Multi-Sponsored by --
         M. of A. BENEDETTO, BRENNAN, BROOK-KRASNY, GALEF, PRETLOW -- read once
         and referred to the Committee on Insurance
       AN ACT to amend the insurance law, in relation to licensing of agents of
         title insurance corporations
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The insurance law is amended by adding a new article 21-A
    2  to read as follows:
    3                                 ARTICLE 21-A
    4                           TITLE INSURANCE AGENTS
    5  SECTION 2151. DEFINITIONS.
    6          2152. ACTING WITHOUT A LICENSE.
    7          2153. TITLE INSURANCE AGENTS; LICENSING.
    8          2154. TEMPORARY LICENSE IN CASE OF DEATH, SERVICE IN ARMED FORC-
    9                  ES OR DISABILITY.
   10          2155. REVOCATION OR SUSPENSION OF  LICENSE  OF  TITLE  INSURANCE
   11                  AGENT OR CERTIFICATE OF APPOINTMENT OF A SUB-LICENSEE OR
   12                  AN ATTORNEY ACTING AS A TITLE INSURANCE AGENT.
   13          2156. PENALTIES FOR VIOLATIONS.
   14          2157. REVOKED LICENSEES.
   15          2158. CERTIFICATE  OF APPOINTMENT AND NOTICE OF TERMINATION OF A
   16                  TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY.
   17          2159. COMMISSIONS;  PREMIUM  SPLITTING  AND   OTHER   PROHIBITED
   18                  PAYMENTS OR RECEIPTS OF PAYMENTS.
   19          2160. ACTING  FOR  OR  AIDING  UNLICENSED  OR UNAUTHORIZED TITLE
   20                  INSURANCE CORPORATIONS.
   21          2161. CONTROLLED BUSINESS.
   22          2162. FIDUCIARY CAPACITY OF LICENSEES.
   23          2163. ADVERTISING BY LICENSEES.
   24          2164. STAY OR SUSPENSION OF SUPERINTENDENT'S DETERMINATION.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04379-01-5
       A. 5894                             2
    1          2165. IMPERSONATION AT EXAMINATIONS PROHIBITED.
    2          2166. CONTINUING EDUCATION.
    3          2167. CHANGE OF ADDRESS.
    4          2168. ADMINISTRATION OF CERTAIN FUNCTIONS.
    5    S 2151. DEFINITIONS. IN THIS ARTICLE:
    6    (A)  "BUSINESS  ENTITY" MEANS A CORPORATION, ASSOCIATION, PARTNERSHIP,
    7  LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP OR OTHER  LEGAL
    8  ENTITY.
    9    (B)  "CONTROLLED  BUSINESS"  MEANS  ANY  PORTION  OF A TITLE INSURANCE
   10  AGENT'S BUSINESS THAT IS REFERRED TO IT BY AN ORIGINATOR OF TITLE INSUR-
   11  ANCE BUSINESS, WHERE THE ORIGINATOR HAS  A  FINANCIAL  INTEREST  IN  THE
   12  TITLE INSURANCE AGENT.
   13    (C)  "CORE  TITLE SERVICES" IN CONNECTION WITH THE ACTIVITIES GOVERNED
   14  BY THIS ARTICLE MEANS:
   15    (1) THE EVALUATION OF THE TITLE SEARCH TO  DETERMINE  INSURABILITY  OF
   16  THE TITLE;
   17    (2) THE PREPARATION AND ISSUANCE OF A TITLE INSURANCE COMMITMENT;
   18    (3)  THE  CLEARANCE  OF UNDERWRITING EXCEPTIONS IN CONNECTION WITH THE
   19  ISSUANCE OF A TITLE INSURANCE POLICY;
   20    (4) THE MARKING UP OF A TITLE INSURANCE COMMITMENT  TO  BIND  A  TITLE
   21  INSURANCE CORPORATION; AND
   22    (5) THE PREPARATION AND ISSUANCE OF A TITLE INSURANCE POLICY ON BEHALF
   23  OF A TITLE INSURANCE CORPORATION.
   24    (D) "FINANCIAL INTEREST" MEANS A DIRECT OR INDIRECT INTEREST, LEGAL OR
   25  BENEFICIAL,  WHEREIN THE HOLDER IS OR WILL BE ENTITLED TO ANY PORTION OF
   26  THE PROFITS OR NET WORTH OF THE PERSON IN WHICH THE INTEREST IS HELD.
   27    (E) "LICENSEE" MEANS A TITLE INSURANCE AGENT TO  WHOM  A  LICENSE  HAS
   28  BEEN  ISSUED PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED FIFTY-THREE OF
   29  THIS ARTICLE.
   30    (F) "NEGOTIATE" OR "NEGOTIATION" MEANS THE ACT OF CONFERRING  DIRECTLY
   31  WITH OR OFFERING ADVICE DIRECTLY TO A PURCHASER OR PROSPECTIVE PURCHASER
   32  OF A PARTICULAR TITLE INSURANCE POLICY CONCERNING ANY OF THE SUBSTANTIVE
   33  BENEFITS,  TERMS  OR  CONDITIONS OF THE POLICY, PROVIDED THAT THE PERSON
   34  ENGAGED IN THAT ACT SELLS TITLE INSURANCE.
   35    (G) "ORIGINATOR" MEANS A PERSON, OR EMPLOYEE OF SUCH PERSON, HAVING  A
   36  FINANCIAL  INTEREST IN ANY BUSINESS ENTITY ENGAGED IN THE BUSINESS OF OR
   37  WHO IS INDIVIDUALLY ENGAGED IN THE BUSINESS OF:
   38    (1) BUYING OR SELLING ANY INTEREST IN REAL PROPERTY;
   39    (2) MAKING LOANS SECURED BY ANY INTEREST IN REAL PROPERTY; OR
   40    (3) ACTING AS A REAL ESTATE BROKER OR AGENT, MORTGAGE LENDER, MORTGAGE
   41  BANKER, MORTGAGE BROKER, OR AN AGENT, REPRESENTATIVE OR  ATTORNEY  OF  A
   42  PERSON  WHICH  LEASES,  BUYS OR SELLS ANY INTEREST IN, OR WHICH LENDS OR
   43  BORROWS MONEY SECURED BY AN INTEREST IN REAL PROPERTY.
   44    (H) "PERSON" MEANS AN INDIVIDUAL OR A BUSINESS ENTITY.
   45    (I) "REAL PROPERTY" MEANS ANY INTEREST IN REAL OR PERSONAL PROPERTY OR
   46  ANY INTEREST IN A UNIT UNDER A PLAN OF COOPERATIVE OWNERSHIP FOR WHICH A
   47  TITLE INSURANCE POLICY MAY BE ISSUED IN THIS STATE.
   48    (J) "REFERRAL" MEANS THE DIRECTING OR INFLUENCING, OR  THE  EXERCISING
   49  OF  ANY  POWER  TO  DIRECT OR INFLUENCE THE PLACEMENT OF TITLE INSURANCE
   50  BUSINESS.
   51    (K) "SELL" OR "SALE" MEANS TO EXCHANGE A TITLE INSURANCE POLICY BY ANY
   52  MEANS, FOR MONEY OR ITS EQUIVALENT, ON BEHALF OF A LICENSED TITLE INSUR-
   53  ANCE CORPORATION.
       A. 5894                             3
    1    (L) "SOLICIT" OR "SOLICITATION" MEANS ATTEMPTING TO SELL TITLE  INSUR-
    2  ANCE  OR  ASKING  OR  URGING  A PERSON TO APPLY FOR A PARTICULAR KIND OF
    3  TITLE INSURANCE FROM A PARTICULAR LICENSED TITLE INSURANCE CORPORATION.
    4    (M)  "SUB-LICENSEE" MEANS AN INDIVIDUAL, OTHER THAN AN ORIGINATOR, WHO
    5  IS A MEMBER, MANAGER, PARTNER, DIRECTOR, OFFICER OR EMPLOYEE OF A  BUSI-
    6  NESS ENTITY LICENSED AS A TITLE INSURANCE AGENT DESIGNATED BY SUCH TITLE
    7  INSURANCE AGENT TO ACT ON ITS BEHALF AND TO FULFILL CONTINUING EDUCATION
    8  REQUIREMENTS ON BEHALF OF THE TITLE INSURANCE AGENT.
    9    (N)  "TITLE INSURANCE AGENT" MEANS AN AUTHORIZED PERSON, OTHER THAN AN
   10  EMPLOYEE OF A TITLE INSURANCE CORPORATION WHO, ON BEHALF  OF  THE  TITLE
   11  INSURANCE  CORPORATION, PERFORMS THE FOLLOWING ACTS, IN CONJUNCTION WITH
   12  THE ISSUANCE OF A TITLE INSURANCE COMMITMENT OR POLICY:
   13    (1) DETERMINES INSURABILITY AND ISSUES TITLE INSURANCE COMMITMENTS  OR
   14  POLICIES,  OR  BOTH,  BASED  UPON  THE  PERFORMANCE OR REVIEW OF A TITLE
   15  SEARCH; AND
   16    (2) PERFORMS ONE OR MORE OF THE FOLLOWING FUNCTIONS:
   17    (A) REMITS OR DISBURSES PREMIUMS OR OTHER FUNDS; OR
   18    (B) SOLICITS OR NEGOTIATES THE ISSUANCE OF A TITLE INSURANCE POLICY.
   19    (O) "TITLE INSURANCE COMMITMENT" MEANS A REPORT,  BINDER,  CERTIFICATE
   20  OR  OTHER  DOCUMENT  ISSUED  PRIOR  TO THE ISSUANCE OF A TITLE INSURANCE
   21  POLICY WHICH CONTAINS THE TERMS, CONDITIONS AND EXCEPTIONS  PURSUANT  TO
   22  WHICH A TITLE INSURANCE POLICY IS TO BE ISSUED.
   23    (P)  "TITLE  INSURANCE  CORPORATION"  MEANS A CORPORATION ORGANIZED IN
   24  COMPLIANCE WITH ARTICLE SIXTY-FOUR OF THIS CHAPTER, EXCEPT THAT FOR  THE
   25  PURPOSES OF SECTION TWO THOUSAND ONE HUNDRED SIXTY OF THIS ARTICLE, SUCH
   26  TERM  MEANS A CORPORATION DESCRIBED IN SECTION SIX THOUSAND FOUR HUNDRED
   27  ONE OF THIS CHAPTER WHICH HAS NOT BEEN LICENSED PURSUANT TO THIS CHAPTER
   28  TO DO THE KIND OF INSURANCE BUSINESS, WITH THE INCIDENTAL POWERS  SPECI-
   29  FIED IN SECTION SIX THOUSAND FOUR HUNDRED THREE OF THIS CHAPTER.
   30    (Q)  "TITLE INSURANCE POLICY" OR "TITLE INSURANCE" MEANS ANY POLICY OR
   31  CONTRACT INSURING OR GUARANTEEING THE OWNERS OF REAL PROPERTY AND  CHAT-
   32  TELS REAL AND OTHER PERSONS INTERESTED THEREIN, OR HAVING LIENS THEREON,
   33  AGAINST LOSS BY REASON OF ENCUMBRANCES THEREON AND DEFECTIVE TITLES, AND
   34  ANY SUBSTANTIALLY SIMILAR KIND OF INSURANCE.
   35    (R)  "TITLE SEARCH" MEANS A WRITTEN SYNOPSIS OR SUMMARY OF INSTRUMENTS
   36  AFFECTING TITLES TO REAL PROPERTY, CHATTELS REAL, AND COOPERATIVE  UNITS
   37  AND PROPRIETARY LEASES, AND OF LIENS OR CHARGES AFFECTING THE SAME.
   38    S  2152.  ACTING WITHOUT A LICENSE. (A) NO PERSON SHALL ACT AS A TITLE
   39  INSURANCE AGENT IN THIS STATE WITHOUT  HAVING  AUTHORITY  TO  DO  SO  BY
   40  VIRTUE  OF  A  LICENSE ISSUED AND IN FORCE PURSUANT TO THE PROVISIONS OF
   41  THIS CHAPTER.
   42    (B) NO PERSON SHALL ACCEPT ANY FEE, COMPENSATION, COMMISSION OR  OTHER
   43  VALUABLE  CONSIDERATION  FOR  ACTING  AS A TITLE INSURANCE AGENT IN THIS
   44  STATE, OR WITH RESPECT TO THE ISSUANCE OF A TITLE INSURANCE  POLICY,  IF
   45  THAT  PERSON IS REQUIRED TO BE LICENSED UNDER THIS ARTICLE AND IS NOT SO
   46  LICENSED.
   47    (C) A TITLE INSURANCE CORPORATION OR A TITLE INSURANCE AGENT  MAY  PAY
   48  OR  ASSIGN  FEES,  COMPENSATION, COMMISSIONS OR OTHER VALUABLE CONSIDER-
   49  ATION TO A TITLE INSURANCE AGENT OR TO PERSONS WHO DO NOT ACT AS A TITLE
   50  INSURANCE AGENT IN THIS STATE, UNLESS  THE  PAYMENT  WOULD  VIOLATE  ANY
   51  PROVISION OF THIS CHAPTER.
   52    (D)  EVERY LICENSEE SHALL NOTIFY THE SUPERINTENDENT UPON CHANGING HIS,
   53  HER OR ITS LEGAL NAME. EXCEPT FOR AN  INDIVIDUAL  LICENSEE'S  OWN  LEGAL
   54  NAME, NO LICENSEE SHALL USE ANY NAME, IN CONDUCTING A BUSINESS REGULATED
   55  BY  THIS  ARTICLE,  THAT  HAS NOT BEEN PREVIOUSLY APPROVED BY THE SUPER-
   56  INTENDENT.
       A. 5894                             4
    1    (E) SUBSECTIONS (A) AND (B) OF THIS SECTION SHALL NOT APPLY TO:
    2    (1)  A  TITLE  INSURANCE CORPORATION, OR TO ANY OFFICER OR EMPLOYEE OF
    3  SUCH TITLE INSURANCE CORPORATION ACTING IN THEIR  CAPACITY  AS  SUCH  IN
    4  DISCHARGING  THE  DUTIES  OF  THEIR  OFFICE OR EMPLOYMENT, OTHER THAN AN
    5  ORIGINATOR, NOTWITHSTANDING THE MANNER IN WHICH THE OFFICER OR  EMPLOYEE
    6  MAY BE COMPENSATED;
    7    (2)  AN  INDIVIDUAL,  OTHER  THAN  AN  ORIGINATOR, EMPLOYED BY A TITLE
    8  INSURANCE AGENT, ACTING ON A FULL-TIME OR PART-TIME BASIS IN THE CAPACI-
    9  TY OF AND WITHIN THE SCOPE OF HIS OR HER  DUTIES  AS  SUCH  AN  EMPLOYEE
   10  UNDER THE SUPERVISION OF A LICENSEE, NOTWITHSTANDING THE MANNER IN WHICH
   11  SUCH EMPLOYEE OR SUB-LICENSEE MAY BE COMPENSATED;
   12    (3)  AN  INDIVIDUAL,  OTHER THAN AN ORIGINATOR, ENGAGED TO REPRESENT A
   13  TITLE INSURANCE CORPORATION OR TITLE INSURANCE AGENT AT THE  CLOSING  OF
   14  TITLE,  AND ACTING IN SUCH CAPACITY, PROVIDED SUCH INDIVIDUAL IS PAID NO
   15  MORE THAN THE REASONABLE AND CUSTOMARY COMPENSATION FOR SERVICES ACTUAL-
   16  LY RENDERED AT SUCH CLOSING, BUT ONLY WITH RESPECT TO SUCH ENGAGEMENT;
   17    (4) A PERSON, OTHER THAN AN ORIGINATOR, ACTING IN THE CAPACITY  OF  AN
   18  INDEPENDENT CONTRACTOR FOR A TITLE INSURANCE AGENT OR FOR A TITLE INSUR-
   19  ANCE  CORPORATION,  WHO  RECEIVES COMPENSATION FROM SUCH AGENT OR CORPO-
   20  RATION FOR SERVICES ACTUALLY RENDERED IN AN AMOUNT NOT IN EXCESS OF  THE
   21  REASONABLE  AND CUSTOMARY COMPENSATION THEREOF, BUT ONLY WITH RESPECT TO
   22  SUCH SERVICES;
   23    (F) SUBSECTIONS (A) AND (B) OF THIS SECTION  SHALL  NOT  APPLY  TO  AN
   24  ATTORNEY  LICENSED  TO  PRACTICE  LAW  IN  THIS  STATE WHO HOLDS A VALID
   25  CERTIFICATE OF APPOINTMENT ISSUED TO AND IN FORCE WITH RESPECT  TO  SUCH
   26  ATTORNEY  PURSUANT  TO  SECTION  TWO THOUSAND ONE HUNDRED FIFTY-EIGHT OF
   27  THIS ARTICLE BY THE TITLE INSURANCE CORPORATION FOR WHICH SUCH  ATTORNEY
   28  IS ACTING AS A TITLE INSURANCE AGENT IN THIS STATE.
   29    S  2153. TITLE INSURANCE AGENTS; LICENSING. (A) THE SUPERINTENDENT MAY
   30  ISSUE A LICENSE TO ANY  PERSON  WHO  OR  WHICH  HAS  COMPLIED  WITH  THE
   31  REQUIREMENTS  OF  THIS  CHAPTER,  AUTHORIZING  SUCH LICENSEE TO ACT AS A
   32  TITLE INSURANCE AGENT, ON BEHALF OF ONE OF MORE LICENSED TITLE INSURANCE
   33  CORPORATIONS.
   34    (B)(1) A LICENSE ISSUED TO A BUSINESS ENTITY SHALL DESIGNATE AT LEAST:
   35    (A) ONE SUB-LICENSEE TO ACT AS A TITLE INSURANCE AGENT THEREUNDER  AND
   36  TO  FULFILL THE CONTINUING EDUCATION REQUIREMENT UNDER SECTION TWO THOU-
   37  SAND ONE HUNDRED SIXTY-SIX OF THIS ARTICLE WHO HAS FILED WITH THE SUPER-
   38  INTENDENT A CERTIFICATE OF APPOINTMENT PURSUANT TO SECTION TWO  THOUSAND
   39  ONE HUNDRED FIFTY-EIGHT OF THIS ARTICLE; OR
   40    (B)  ONE  ATTORNEY  LICENSED TO PRACTICE LAW IN THIS STATE TO ACT AS A
   41  TITLE INSURANCE AGENT THEREUNDER WHO HAS FILED WITH THE SUPERINTENDENT A
   42  CERTIFICATE OF APPOINTMENT PURSUANT TO SECTION TWO THOUSAND ONE  HUNDRED
   43  FIFTY-EIGHT OF THIS ARTICLE.
   44    (2)  AT LEAST ONE SUCH DESIGNATED SUB-LICENSEE OR ATTORNEY MUST HAVE A
   45  FINANCIAL INTEREST IN THE LICENSEE. A LICENSE ISSUED TO A BUSINESS ENTI-
   46  TY SHALL AUTHORIZE ONLY THE DESIGNATED SUB-LICENSEE OR SUB-LICENSEES  OR
   47  THE  DESIGNATED  ATTORNEY  OR  ATTORNEYS  TO  ACT ON BEHALF OF THE TITLE
   48  INSURANCE AGENT, AND EVERY  SUCH  DESIGNATED  SUB-LICENSEE  OR  ATTORNEY
   49  SHALL BE AUTHORIZED TO ACT ONLY IN THE NAME OF THE LICENSEE.
   50    (C)  EVERY  INDIVIDUAL  APPLICANT FOR A LICENSE UNDER THIS SECTION AND
   51  EVERY DESIGNATED SUB-LICENSEE AND ATTORNEY SHALL BE  EIGHTEEN  YEARS  OF
   52  AGE OR OVER AT THE TIME OF THE ISSUANCE OF SUCH LICENSE.
   53    (D)  BEFORE  ANY  ORIGINAL  TITLE  INSURANCE AGENT'S LICENSE IS ISSUED
   54  THERE SHALL BE ON FILE IN THE OFFICE OF THE SUPERINTENDENT:
   55    (1) AN APPLICATION BY THE PROSPECTIVE LICENSEE IN SUCH FORM  OR  FORMS
   56  AND   SUPPLEMENTS,   AND   CONTAINING   INFORMATION  THE  SUPERINTENDENT
       A. 5894                             5
    1  PRESCRIBES AND FOR EACH BUSINESS ENTITY,  THE  SUB-LICENSEE,  SUB-LICEN-
    2  SEES, ATTORNEY OR ATTORNEYS NAMED IN THE APPLICATION SHALL BE DESIGNATED
    3  RESPONSIBLE  FOR  THE  BUSINESS  ENTITY'S  COMPLIANCE WITH THE INSURANCE
    4  LAWS, RULES AND REGULATIONS OF THIS STATE. THE APPLICATION SHALL INCLUDE
    5  THE  NAMES  AND  ADDRESSES  OF EACH DESIGNATED SUB-LICENSEE OR ATTORNEY,
    6  EACH PERSON THAT HAS A FINANCIAL INTEREST IN  THE  APPLICANT,  AND  EACH
    7  SUCH  PERSON  THAT IS OR WILL BE AN ORIGINATOR, AND WITH RESPECT TO EACH
    8  SUB-LICENSEE, ATTORNEY AND ORIGINATOR, HIS, HER OR ITS FINANCIAL  INTER-
    9  EST  IN THE APPLICANT AND IN EVERY OTHER TITLE INSURANCE AGENT OR INSUR-
   10  ANCE AGENT WHOSE LICENSE HAD AT ANY TIME BEEN SUSPENDED OR REVOKED,  AND
   11  ANY OTHER INFORMATION THE SUPERINTENDENT PRESCRIBES.
   12    (2)  A  CERTIFICATE  OF APPOINTMENT ISSUED BY A TITLE INSURANCE CORPO-
   13  RATION PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED FIFTY-EIGHT OF  THIS
   14  ARTICLE,  STATING THAT IT HAS MADE SUCH INVESTIGATION OF THE PROSPECTIVE
   15  LICENSEE AND ITS SUB-LICENSEES AND ATTORNEYS AS IT DEEMS APPROPRIATE AND
   16  THAT SUCH TITLE INSURANCE CORPORATION APPOINTS SUCH PROSPECTIVE LICENSEE
   17  TO ACT AS ITS  AGENT IF A LICENSE AS A TITLE INSURANCE AGENT  IS  ISSUED
   18  BY THE SUPERINTENDENT TO THE PROSPECTIVE LICENSEE.
   19    (E)(1)  THE SUPERINTENDENT SHALL, IN ORDER TO DETERMINE THE COMPETENCY
   20  OF EVERY INDIVIDUAL APPLICANT AND OF EVERY PROPOSED SUB-LICENSEE  OF  AN
   21  APPLICANT  BUSINESS ENTITY TO HAVE THE LICENSE APPLIED FOR, REQUIRE SUCH
   22  INDIVIDUAL TO SUBMIT TO A PERSONAL WRITTEN EXAMINATION AND TO  PASS  THE
   23  SAME  TO  THE SATISFACTION OF THE SUPERINTENDENT. SUCH EXAMINATION SHALL
   24  BE HELD AT SUCH TIMES AND PLACES AS THE SUPERINTENDENT SHALL  FROM  TIME
   25  TO  TIME  DETERMINE. EVERY INDIVIDUAL APPLYING TO TAKE ANY WRITTEN EXAM-
   26  INATION SHALL, AT THE TIME OF APPLYING THEREFOR, PAY TO THE  SUPERINTEN-
   27  DENT,  OR,  AT  THE  DISCRETION  OF  THE SUPERINTENDENT, DIRECTLY TO ANY
   28  ORGANIZATION THAT IS UNDER CONTRACT TO PROVIDE EXAMINATION SERVICES,  AN
   29  EXAMINATION  FEE OF AN AMOUNT WHICH IS THE ACTUAL DOCUMENTED ADMINISTRA-
   30  TIVE COST OF CONDUCTING SAID QUALIFYING EXAMINATION AS CERTIFIED BY  THE
   31  SUPERINTENDENT  FROM  TIME  TO  TIME.  AN  EXAMINATION FEE REPRESENTS AN
   32  ADMINISTRATIVE EXPENSE AND IS NOT  REFUNDABLE.  THE  SUPERINTENDENT  MAY
   33  ACCEPT,  IN  LIEU  OF  ANY  SUCH EXAMINATION, THE RESULT OF ANY PREVIOUS
   34  WRITTEN EXAMINATION, GIVEN BY THE SUPERINTENDENT, WHICH IN  HIS  OR  HER
   35  JUDGMENT IS EQUIVALENT TO THE EXAMINATION FOR WHICH IT IS SUBSTITUTED.
   36    (2)  NO  INDIVIDUAL  SHALL BE DEEMED QUALIFIED TO TAKE THE EXAMINATION
   37  UNLESS HE OR SHE SHALL HAVE SUCCESSFULLY COMPLETED A COURSE OR  COURSES,
   38  APPROVED  AS  TO  METHOD  AND CONTENT BY THE SUPERINTENDENT, COVERING AT
   39  LEAST THE CORE TITLE SERVICES  AND  THE  TITLE  INSURANCE  POLICIES  AND
   40  REQUIRING NOT LESS THAN FORTY-FIVE HOURS OF CLASSROOM WORK OR THE EQUIV-
   41  ALENT  IN  CORRESPONDENCE  WORK  OR  SIMILAR INSTRUCTION. SUCH COURSE OR
   42  COURSES EITHER SHALL HAVE BEEN GIVEN BY A DEGREE CONFERRING  COLLEGE  OR
   43  UNIVERSITY  WHICH  HAS,  WHEN SUCH COURSE IS TAKEN BY SUCH INDIVIDUAL, A
   44  CURRICULUM OR CURRICULA REGISTERED WITH THE STATE EDUCATION  DEPARTMENT,
   45  WHETHER  SUCH COURSE BE GIVEN AS PART OF ANY SUCH CURRICULA OR SEPARATE-
   46  LY, OR BY ANY OTHER INSTITUTION, AGENTS' ASSOCIATION, TRADE ASSOCIATION,
   47  BAR ASSOCIATION OR TITLE INSURANCE CORPORATION, WHICH  MAINTAINS  EQUIV-
   48  ALENT  STANDARDS  OF  INSTRUCTION AND WHICH SHALL HAVE BEEN APPROVED FOR
   49  SUCH PURPOSE BY THE SUPERINTENDENT.
   50    (F) NO SUCH WRITTEN EXAMINATION SHALL BE REQUIRED:
   51    (1) IN THE DISCRETION OF THE SUPERINTENDENT, OF ANY  INDIVIDUAL  WHOSE
   52  LICENSE HAS BEEN REVOKED OR SUSPENDED;
   53    (2)  IN  CONNECTION  WITH  ANY CERTIFICATE OF APPOINTMENT FOR AN ADDI-
   54  TIONAL TITLE INSURANCE CORPORATION;
   55    (3) OF ANY APPLICANT WHO HAS PASSED THE WRITTEN EXAMINATION  GIVEN  BY
   56  THE  SUPERINTENDENT  FOR  A  TITLE  INSURANCE  AGENT'S  LICENSE  AND WAS
       A. 5894                             6
    1  LICENSED AS SUCH, OR OF AN APPLICANT WHO WAS LICENSED AS A TITLE  INSUR-
    2  ANCE  AGENT BUT DID NOT PASS SUCH AN EXAMINATION, PROVIDED THE APPLICANT
    3  APPLIES WITHIN TWO YEARS FOLLOWING THE DATE OF TERMINATION OF HIS OR HER
    4  LICENSE; OR
    5    (4) OF AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS STATE.
    6    (G)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO COURSE OF
    7  STUDY OR WRITTEN EXAMINATION SHALL  BE  REQUIRED  WITH  RESPECT  TO  ANY
    8  APPLICANT  WHO  FILES  AN APPLICATION UNDER THIS SECTION WITHIN ONE YEAR
    9  AFTER THE EFFECTIVE DATE OF THIS ARTICLE AND  WHO  DEMONSTRATES  TO  THE
   10  SATISFACTION OF THE SUPERINTENDENT THAT SUCH PROSPECTIVE LICENSEE OR ITS
   11  PROSPECTIVE  SUB-LICENSEE  HAS  REGULARLY AND CONTINUOUSLY PERFORMED THE
   12  FUNCTIONS OF A TITLE INSURANCE AGENT FOR A PERIOD OF AT LEAST FIVE YEARS
   13  IMMEDIATELY PRECEDING THE FILING OF SUCH APPLICATION.
   14    (H) THE SUPERINTENDENT MAY REFUSE TO ISSUE ANY TITLE INSURANCE AGENT'S
   15  LICENSE IF, IN HIS OR HER JUDGMENT, THE PROPOSED LICENSEE OR ANY SUB-LI-
   16  CENSEE OR ATTORNEY IS NOT TRUSTWORTHY  AND  COMPETENT  TO  ACT  AS  SUCH
   17  AGENT,  OR  HAS  GIVEN  CAUSE FOR THE REVOCATION OR SUSPENSION OF SUCH A
   18  LICENSE, OR HAS FAILED TO COMPLY WITH ANY PREREQUISITE FOR THE  ISSUANCE
   19  OF SUCH LICENSE.
   20    (I)(1)  THE  SUPERINTENDENT  MAY REQUIRE FROM EVERY APPLICANT AND FROM
   21  EVERY PROPOSED SUB-LICENSEE, BEFORE OR AFTER ISSUING ANY SUCH LICENSE, A
   22  STATEMENT SUBSCRIBED AND AFFIRMED AS TRUE UNDER THE PENALTIES OF PERJURY
   23  AS TO THE OWNERSHIP OF ANY INTEREST IN AN APPLICANT BUSINESS ENTITY  AND
   24  AS  TO  FACTS  INDICATING WHETHER ANY APPLICANT HAS BEEN BY REASON OF AN
   25  EXISTING LICENSE, IF ANY, OR WILL, BY REASON OF THE LICENSE APPLIED FOR,
   26  BE RECEIVING ANY BENEFIT OR ADVANTAGE IN VIOLATION OF SECTION TWO  THOU-
   27  SAND  THREE  HUNDRED  TWENTY-FOUR  OF  THIS CHAPTER, AND ALSO AS TO SUCH
   28  FACTS AS THE SUPERINTENDENT MAY DEEM PERTINENT TO  THE  REQUIREMENTS  OF
   29  THIS  SUBSECTION.  THE  SUPERINTENDENT  MAY  REFUSE TO ISSUE, SUSPEND OR
   30  REVOKE A LICENSE, AS THE CASE MAY BE, TO OR OF  ANY  APPLICANT  AND  ANY
   31  LICENSEE IF THE SUPERINTENDENT FINDS THAT SUCH APPLICANT OR LICENSEE HAS
   32  BEEN  OR  WILL  BE,  AS AFORESAID, RECEIVING ANY BENEFIT OR ADVANTAGE IN
   33  VIOLATION OF SECTION TWO THOUSAND  THREE  HUNDRED  TWENTY-FOUR  OF  THIS
   34  CHAPTER,  OR  IF  THE  SUPERINTENDENT  FINDS THAT AN ORIGINATOR HAVING A
   35  FINANCIAL INTEREST IN THE APPLICANT OR LICENSEE WILL BE OR HAS BEEN  THE
   36  SOLE  SOURCE OF BUSINESS OF THE APPLICANT OR LICENSEE OR THAT THE APPLI-
   37  CANT OR LICENSEE DOES NOT OR WILL  NOT  HAVE  SIGNIFICANT  AND  MULTIPLE
   38  SOURCES OF BUSINESS;
   39    (2)  NOTHING  HEREIN DISQUALIFIES ANY APPLICANT BY REASON OF ACTS DONE
   40  OR FACTS EXISTING AT A TIME WHEN THE SAME DID NOT, UNDER THE LAW THEN IN
   41  FORCE, CONSTITUTE OR CONTRIBUTE TO CONSTITUTING SUCH A DISQUALIFICATION.
   42    (J)(1) EVERY LICENSE ISSUED TO A  BUSINESS  ENTITY  PURSUANT  TO  THIS
   43  SECTION  SHALL  EXPIRE  ON  JUNE THIRTIETH OF EVEN NUMBERED YEARS. EVERY
   44  LICENSE ISSUED PURSUANT TO THIS SECTION TO AN INDIVIDUAL, WHO  WAS  BORN
   45  IN  AN  ODD  NUMBERED YEAR, SHALL EXPIRE ON THE INDIVIDUAL'S BIRTHDAY IN
   46  EACH ODD-NUMBERED YEAR. EVERY LICENSE ISSUED PURSUANT TO THIS SECTION TO
   47  AN INDIVIDUAL, WHO WAS BORN IN AN EVEN NUMBERED YEAR,  SHALL  EXPIRE  ON
   48  THE INDIVIDUAL'S BIRTHDAY IN EACH EVEN NUMBERED YEAR. EVERY SUCH LICENSE
   49  MAY  BE  RENEWED  FOR  THE ENSUING PERIOD OF TWENTY-FOUR MONTHS UPON THE
   50  FILING OF AN APPLICATION IN CONFORMITY WITH THIS SUBSECTION.
   51    (2) SUCH LICENSES MAY BE ISSUED FOR ALL OF SUCH TWO  YEAR  TERMS,  OR,
   52  UPON APPLICATION MADE DURING ANY SUCH TERM, FOR THE BALANCE THEREOF.
   53    (3)  ANY  LICENSE  SHALL  BE  CONSIDERED  IN  GOOD STANDING WITHIN THE
   54  LICENSE TERM UNLESS:
   55    (A) REVOKED OR SUSPENDED BY THE SUPERINTENDENT PURSUANT TO THIS  ARTI-
   56  CLE.
       A. 5894                             7
    1    (B)  ALL CERTIFICATES OF APPOINTMENT HAVE BEEN TERMINATED BY THE TITLE
    2  INSURANCE CORPORATIONS, AT WHICH TIME THE LICENSE BECOMES INACTIVE.
    3    (C)  IF  AT  THE  EXPIRATION  DATE  OF  THE LICENSE TERM, PROVIDED THE
    4  LICENSE WAS IN GOOD STANDING DURING THE TERM, THE LICENSEE FAILS TO FILE
    5  A RENEWAL APPLICATION.
    6    (4) BEFORE THE RENEWAL OF ANY TITLE INSURANCE AGENT'S LICENSE SHALL BE
    7  ISSUED, THE FOLLOWING REQUIREMENTS SHALL HAVE BEEN MET:
    8    (A) THE LICENSEE SHALL HAVE FILED A COMPLETED RENEWAL  APPLICATION  IN
    9  SUCH  FORM OR FORMS AND SUPPLEMENTS THERETO AND CONTAINING SUCH INFORMA-
   10  TION AS THE SUPERINTENDENT MAY PRESCRIBE.
   11    (B) THE LICENSEE SHALL HAVE PAID SUCH FEES AS ARE PRESCRIBED  IN  THIS
   12  SECTION.
   13    (5)  IF  THE  AGENT'S LICENSE IS DEEMED TO BE IN AN INACTIVE STATUS AT
   14  THE TIME OF RENEWAL, A RENEWAL APPLICATION MAY BE  COMPLETED  AND  FILED
   15  WITH THE SUPERINTENDENT FOR THE ENSUING TERM OF A LICENSE; HOWEVER, IF A
   16  CERTIFICATE OF APPOINTMENT IS NOT FILED ON THE AGENT'S BEHALF WITHIN THE
   17  TERM  OF THE RENEWAL, THE LICENSE WILL EXPIRE AND WILL NOT BE RENEWED AT
   18  THE END OF THE LICENSE TERM. DURING THE TERM OF THE LICENSE FOR WHICH NO
   19  CERTIFICATE OF APPOINTMENT WAS ON FILE, IT SHALL BE DEEMED TO  BE  INAC-
   20  TIVE.
   21    (6) IF AN APPLICATION FOR A RENEWAL LICENSE SHALL HAVE BEEN FILED WITH
   22  THE  SUPERINTENDENT  BEFORE  THE EXPIRATION OF SUCH LICENSE, THE LICENSE
   23  SOUGHT TO BE RENEWED SHALL CONTINUE IN  FULL  FORCE  AND  EFFECT  EITHER
   24  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL LICENSE APPLIED
   25  FOR OR UNTIL FIVE DAYS AFTER THE SUPERINTENDENT SHALL  HAVE  REFUSED  TO
   26  ISSUE  SUCH  RENEWAL LICENSE AND SHALL HAVE GIVEN NOTICE OF SUCH REFUSAL
   27  TO THE APPLICANT AND TO EACH PROPOSED SUB-LICENSEE. BEFORE  REFUSING  TO
   28  RENEW ANY SUCH LICENSE, THE SUPERINTENDENT SHALL NOTIFY THE APPLICANT OF
   29  HIS OR HER INTENTION TO DO SO AND SHALL GIVE SUCH APPLICANT A HEARING.
   30    (7)(A)  THE  SUPERINTENDENT  MAY IN ISSUING A RENEWAL LICENSE DISPENSE
   31  WITH THE REQUIREMENTS OF A VERIFIED APPLICATION BY AN INDIVIDUAL  LICEN-
   32  SEE  WHO,  BY  REASON  OF  BEING ENGAGED IN ANY MILITARY SERVICE FOR THE
   33  UNITED STATES, IS UNABLE TO MAKE PERSONAL APPLICATION FOR  SUCH  RENEWAL
   34  LICENSE, UPON THE FILING OF AN APPLICATION ON BEHALF OF SUCH INDIVIDUAL,
   35  IN  SUCH  FORM  AS THE SUPERINTENDENT SHALL PRESCRIBE, BY SOME PERSON OR
   36  PERSONS WHO IN HIS OR HER JUDGMENT HAVE KNOWLEDGE OF THE FACTS  AND  WHO
   37  MAKE  AFFIDAVIT  SHOWING SUCH MILITARY SERVICE AND THE INABILITY OF SUCH
   38  TITLE INSURANCE AGENT TO MAKE PERSONAL APPLICATION.
   39    (B) AN INDIVIDUAL LICENSEE  WHO  IS  UNABLE  TO  COMPLY  WITH  LICENSE
   40  RENEWAL  PROCEDURES  DUE  TO  OTHER EXTENUATING CIRCUMSTANCES, SUCH AS A
   41  LONG-TERM MEDICAL DISABILITY, MAY REQUEST A WAIVER OF  SUCH  PROCEDURES,
   42  IN  SUCH  FORM  AS  THE SUPERINTENDENT SHALL PRESCRIBE. THE LICENSEE MAY
   43  ALSO REQUEST A WAIVER OF ANY EXAMINATION REQUIREMENT OR ANY  OTHER  FINE
   44  OR SANCTION IMPOSED FOR FAILURE TO COMPLY WITH RENEWAL PROCEDURES.
   45    (8)  IN  ADDITION TO ANY EXAMINATION FEE REQUIRED BY SUBSECTION (E) OF
   46  THIS SECTION, THERE SHALL BE PAID TO THE SUPERINTENDENT FOR EACH LICENSE
   47  APPLICANT FOR THE TERM OF THE  LICENSE,  EXCEPT  ANY  LICENSE  APPLICANT
   48  UNDER  SUBSECTION  (K) OF THIS SECTION, THE SUM OF THREE HUNDRED DOLLARS
   49  AND FOR EACH PROPOSED SUB-LICENSEE THE SUM OF  FORTY  DOLLARS  FOR  EACH
   50  YEAR OR FRACTION OF A YEAR IN WHICH A LICENSE SHALL BE VALID. IF, HOWEV-
   51  ER,  THE LICENSE APPLICANT SHOULD WITHDRAW THE APPLICATION OR THE SUPER-
   52  INTENDENT SHOULD DENY THE APPLICATION BEFORE THE LICENSE APPLIED FOR  IS
   53  ISSUED,  THE SUPERINTENDENT MAY REFUND THE FEE PAID BY THE APPLICANT FOR
   54  THE LICENSE APPLIED FOR WITH  THE  EXCEPTION  OF  ANY  EXAMINATION  FEES
   55  REQUIRED PURSUANT TO SUBSECTION (E) OF THIS SECTION.
       A. 5894                             8
    1    (9)  AN  APPLICATION  FOR THE RENEWAL OF A LICENSE SHALL BE FILED WITH
    2  THE SUPERINTENDENT NOT LESS THAN  SIXTY  DAYS  PRIOR  TO  THE  DATE  THE
    3  LICENSE  EXPIRES  OR THE APPLICANT SHALL BE SUBJECT TO A FURTHER FEE FOR
    4  LATE FILING OF TEN DOLLARS.
    5    (10)  NO  LICENSE  FEE SHALL BE REQUIRED OF ANY PERSON WHO SERVED AS A
    6  MEMBER OF THE ARMED FORCES OF THE UNITED STATES  AT  ANY  TIME  AND  WHO
    7  SHALL  HAVE  BEEN  DISCHARGED  THEREFROM,  UNDER  CONDITIONS  OTHER THAN
    8  DISHONORABLE, IN A CURRENT LICENSING PERIOD, FOR THE  DURATION  OF  SUCH
    9  PERIOD.
   10    (11)  EXCEPT  WHERE  A  BUSINESS  ENTITY LICENSED AS A TITLE INSURANCE
   11  AGENT IS APPLYING TO ADD A SUB-LICENSEE, OR THE DATE OF  THE  EXPIRATION
   12  OF  THE  LICENSE  IS  CHANGED,  OR  A  CHANGE IS APPLIED FOR PURSUANT TO
   13  SUBSECTION (L) OF THIS SECTION, THERE SHALL BE NO FEE REQUIRED  FOR  THE
   14  ISSUANCE OF AN AMENDED LICENSE.
   15    (12)  THE LICENSE SHALL CONTAIN THE LICENSEE'S NAME, ADDRESS, PERSONAL
   16  IDENTIFICATION NUMBER, THE DATE OF ISSUANCE, THE EXPIRATION DATE AND ANY
   17  OTHER INFORMATION THE SUPERINTENDENT DEEMS NECESSARY.
   18    (K) ANY LICENSEE MAY AT ANY TIME WHILE SUCH LICENSE IS IN FORCE  APPLY
   19  TO  THE SUPERINTENDENT FOR AN ADDITIONAL LICENSE OR LICENSES AUTHORIZING
   20  SUCH LICENSEE, AND THE SUB-LICENSEES NAMED IN SUCH EXISTING LICENSE,  TO
   21  ACT  AS TITLE INSURANCE AGENT FOR ONE OR MORE ADDITIONAL TITLE INSURANCE
   22  CORPORATIONS. THE SUPERINTENDENT MAY, AFTER  THE  REQUIREMENTS  OF  THIS
   23  CHAPTER  HAVE  BEEN COMPLIED WITH AND AFTER A CERTIFICATE OF APPOINTMENT
   24  HAS BEEN FILED WITH THE SUPERINTENDENT BY  EACH  SUCH  ADDITIONAL  TITLE
   25  INSURANCE  CORPORATION,  AS PROVIDED IN SECTION TWO THOUSAND ONE HUNDRED
   26  FIFTY-EIGHT OF THIS ARTICLE, ISSUE SUCH ADDITIONAL LICENSE OR  LICENSES.
   27  THERE  SHALL  BE A FEE OF FIFTEEN DOLLARS PAID TO THE SUPERINTENDENT FOR
   28  THE ISSUANCE OF EACH ADDITIONAL LICENSE PURSUANT TO THIS SUBSECTION.
   29    (L) WITHIN SIXTY DAYS OF ANY CHANGE IN THE  IDENTITY  OF  ANY  OF  ITS
   30  SUB-LICENSEES,  OR  CHANGE  IN ANY PERSON HAVING A FINANCIAL INTEREST IN
   31  THE TITLE INSURANCE AGENT, THE TITLE INSURANCE AGENT SHALL APPLY TO  THE
   32  SUPERINTENDENT  FOR  AN AMENDMENT TO THE LICENSE ON A FORM PRESCRIBED BY
   33  THE SUPERINTENDENT CONTAINING ANY INFORMATION THE  SUPERINTENDENT  DEEMS
   34  NECESSARY.  THERE  SHALL  BE  PAID  TO  THE SUPERINTENDENT FOR EACH SUCH
   35  APPLICATION THE SUM OF TEN DOLLARS.
   36    (M) THE SUPERINTENDENT MAY ISSUE A  REPLACEMENT  FOR  A  CURRENTLY  IN
   37  FORCE  LICENSE WHICH HAS BEEN LOST OR DESTROYED. BEFORE SUCH REPLACEMENT
   38  LICENSE SHALL BE ISSUED, THERE SHALL BE ON FILE IN  THE  OFFICE  OF  THE
   39  SUPERINTENDENT  A  WRITTEN  APPLICATION  FOR  SUCH  REPLACEMENT LICENSE,
   40  AFFIRMING UNDER PENALTY OF PERJURY THAT THE ORIGINAL  LICENSE  HAS  BEEN
   41  LOST OR DESTROYED, TOGETHER WITH A FEE OF FIFTEEN DOLLARS.
   42    S 2154. TEMPORARY LICENSE IN CASE OF DEATH, SERVICE IN ARMED FORCES OR
   43  DISABILITY.
   44    (A)  THE  SUPERINTENDENT MAY ISSUE A TEMPORARY TITLE INSURANCE AGENT'S
   45  LICENSE, WITHOUT REQUIRING THE APPLICANT TO PASS A WRITTEN  EXAMINATION,
   46  IN  THE  CASE  OF  A  LICENSE  ISSUED  PURSUANT TO PARAGRAPH TWO OF THIS
   47  SUBSECTION, IN THE FOLLOWING CASES:
   48    (1) IN THE CASE OF THE DEATH OF A PERSON WHO AT THE TIME OF HIS  DEATH
   49  WAS A LICENSED TITLE INSURANCE AGENT UNDER SUBSECTION (A) OF SECTION TWO
   50  THOUSAND ONE HUNDRED FIFTY-THREE OF THIS ARTICLE:
   51    (A)  TO  THE  EXECUTOR OR ADMINISTRATOR OF THE ESTATE OF SUCH DECEASED
   52  AGENT;
   53    (B) TO A SURVIVING NEXT OF KIN OF SUCH DECEASED AGENT, WHERE NO ADMIN-
   54  ISTRATOR OF HIS OR HER ESTATE HAS BEEN APPOINTED  AND  NO  EXECUTOR  HAS
   55  QUALIFIED UNDER HIS OR HER DULY PROBATED WILL;
       A. 5894                             9
    1    (C) TO THE SURVIVING MEMBER OR MEMBERS OF A FIRM OR ASSOCIATION, WHICH
    2  AT THE TIME OF THE DEATH OF A MEMBER WAS SUCH A LICENSED TITLE INSURANCE
    3  AGENT; OR
    4    (D)  TO  AN OFFICER OR DIRECTOR OF A CORPORATION UPON THE DEATH OF THE
    5  ONLY OFFICER OR DIRECTOR WHO WAS QUALIFIED AS A SUB-LICENSEE OR  TO  THE
    6  EXECUTOR  OR  ADMINISTRATOR  OF  THE  ESTATE OF SUCH DECEASED OFFICER OR
    7  DIRECTOR;
    8    (2) TO ANY PERSON WHO MAY BE DESIGNATED BY A PERSON LICENSED  PURSUANT
    9  TO THIS ARTICLE AS A TITLE INSURANCE AGENT, AND WHO IS ABSENT BECAUSE OF
   10  SERVICE  IN ANY BRANCH OF THE ARMED FORCES OF THE UNITED STATES, INCLUD-
   11  ING A PARTNERSHIP OR CORPORATION WHICH  IS  LICENSED  PURSUANT  TO  THIS
   12  ARTICLE  AS A TITLE INSURANCE AGENT, IN A CASE WHERE THE SUB-LICENSEE OR
   13  ALL SUB-LICENSEES, IF MORE THAN ONE, NAMED IN THE  LICENSE  OR  LICENSES
   14  ISSUED  TO  SUCH  PARTNERSHIP OR CORPORATION IS OR ARE ABSENT BECAUSE OF
   15  SERVICE IN ANY BRANCH OF THE ARMED FORCES OF THE UNITED STATES; AND
   16    (3) TO THE NEXT OF KIN OF A PERSON WHO HAS BECOME TOTALLY DISABLED AND
   17  PREVENTED FROM PURSUING ANY OF THE DUTIES OF HIS OR HER OCCUPATION,  AND
   18  WHO  AT  THE  COMMENCEMENT OF HIS OR HER DISABILITY WAS A LICENSED TITLE
   19  INSURANCE AGENT UNDER SUBSECTION (A) OF SECTION TWO THOUSAND ONE HUNDRED
   20  FIFTY-THREE OF THIS ARTICLE.
   21    (B) (1) BEFORE ANY SUCH LICENSE OR LICENSES  SHALL  BE  ISSUED,  THERE
   22  SHALL BE FILED IN THE OFFICE OF THE SUPERINTENDENT A WRITTEN APPLICATION
   23  BY  THE  PERSON  OR  PERSONS DESIRING SUCH LICENSE OR LICENSES, TOGETHER
   24  WITH A WRITTEN DESIGNATION OF SUCH PERSON OR PERSONS, IN THE CASE  OF  A
   25  LICENSE  ISSUED  PURSUANT  TO  PARAGRAPH  TWO  OF SUBSECTION (A) OF THIS
   26  SECTION, IN SUCH FORM OR FORMS AND SUPPLEMENTS THERETO,  AND  CONTAINING
   27  SUCH INFORMATION, AS THE SUPERINTENDENT PRESCRIBES.
   28    (2) NO FEE SHALL BE CHARGED FOR ANY SUCH LICENSE OR ANY RENEWAL THERE-
   29  OF,  EXCEPT THAT FEES FOR THE RENEWALS OF ANY LICENSE ISSUED PURSUANT TO
   30  PARAGRAPH TWO OF SUBSECTION (A) OF THIS SECTION SHALL BE ONE-HALF OF THE
   31  FEES OTHERWISE REQUIRED BY THIS CHAPTER FOR SUCH LICENSE.
   32    (C) SUCH LICENSE OR LICENSES SHALL AUTHORIZE  THE  PERSON  OR  PERSONS
   33  NAMED  THEREIN TO RENEW THE BUSINESS OF THE DECEASED, ABSENT OR DISABLED
   34  AGENT, AS THE CASE MAY BE, OR OF THE FIRM OR, IN THE CASE OF  A  LICENSE
   35  ISSUED  PURSUANT  TO  PARAGRAPH  ONE  OR THREE OF SUBSECTION (A) OF THIS
   36  SECTION, THE ASSOCIATION WHOSE BUSINESS IS BEING  CONTINUED  THEREUNDER,
   37  EACH  SUCH  AGENT, FIRM OR ASSOCIATION BEING REFERRED TO IN THIS SECTION
   38  AS "ORIGINAL LICENSEE", EXPIRING DURING THE PERIOD IN WHICH SUCH  TEMPO-
   39  RARY LICENSE OR LICENSES ARE IN FORCE, TO COLLECT PREMIUMS DUE AND PAYA-
   40  BLE  TO THE ORIGINAL LICENSEE OR, IN THE CASE OF A LICENSE ISSUED PURSU-
   41  ANT TO PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION, TO  HIS  OR  HER
   42  ESTATE,  AND  TO  PERFORM SUCH OTHER ACTS AS A TITLE INSURANCE AGENT, AS
   43  THE CASE MAY BE, AS ARE INCIDENTAL  TO  THE  CONTINUANCE  OF  THE  TITLE
   44  INSURANCE BUSINESS OF SUCH ORIGINAL LICENSEE.
   45    (D)  A  PERSON  ELIGIBLE  FOR SUCH A TEMPORARY TITLE INSURANCE AGENT'S
   46  LICENSE MAY BE LICENSED ONLY AS A TITLE INSURANCE  AGENT  OF  THE  TITLE
   47  INSURANCE  CORPORATION  OR CORPORATIONS WHICH SUCH ORIGINAL LICENSEE WAS
   48  LICENSED TO REPRESENT AT THE TIME OF SUCH DEATH, ENTRANCE UPON  MILITARY
   49  OR NAVAL DUTY OR DISABILITY.
   50    (E)  (1) IN THE CASE OF A LICENSE OR LICENSES ISSUED PURSUANT TO PARA-
   51  GRAPH ONE OF SUBSECTION (A) OF THIS SECTION, THE LICENSE OR LICENSES MAY
   52  BE ISSUED FOR A TERM NOT EXCEEDING NINETY DAYS FROM THE  DEATH  OF  SUCH
   53  DECEASED, AND THE SUPERINTENDENT MAY IN HIS OR HER DISCRETION RENEW SUCH
   54  LICENSE OR LICENSES FOR AN ADDITIONAL TERM OR TERMS OF NINETY DAYS EACH,
   55  NOT EXCEEDING IN THE AGGREGATE FIFTEEN MONTHS.
       A. 5894                            10
    1    (2)  THE  SUPERINTENDENT  MAY ISSUE RENEWAL LICENSES FOR AN ADDITIONAL
    2  TERM OR TERMS OF NINETY DAYS EACH  EXCEEDING  THE  AGGREGATE  PERIOD  OF
    3  FIFTEEN MONTHS WHEN IN HIS OR HER JUDGMENT IT WILL BEST SERVE THE INTER-
    4  ESTS OF ANY PERSON SERVING IN THE ARMED FORCES OF THE UNITED STATES.
    5    (3)  A  LICENSE  ISSUED  TO  THE  NEXT OF KIN SHALL NOT BE RENEWED IF,
    6  BEFORE THE EXPIRATION OF ITS TERM, AN ADMINISTRATOR OR EXECUTOR  OF  THE
    7  DECEASED SHALL HAVE APPLIED FOR AND QUALIFIED FOR SUCH A LICENSE.
    8    (4) EXCEPT AS PROVIDED IN SUBSECTION (H) OF THIS SECTION, NO PERSON OR
    9  PERSONS  SO  LICENSED SHALL, BY VIRTUE OF SUCH LICENSE, BE AUTHORIZED TO
   10  SOLICIT, NEGOTIATE OR SELL NEW TITLE INSURANCE.
   11    (F) (1) IN THE CASE OF A LICENSE OR LICENSES ISSUED PURSUANT TO  PARA-
   12  GRAPH TWO OF SUBSECTION (A) OF THIS SECTION, THE LICENSE OR LICENSES MAY
   13  BE  ISSUED  FOR  A TERM NOT EXCEEDING SIX MONTHS, AND THE SUPERINTENDENT
   14  MAY IN HIS OR HER DISCRETION RENEW SUCH LICENSE OR LICENSES FOR AN ADDI-
   15  TIONAL TERM OR TERMS OF SIX MONTHS EACH.
   16    (2) THE TERM OF ANY SUCH LICENSE OR RENEWAL SHALL IN NO  EVENT  EXTEND
   17  BEYOND  SIXTY DAYS AFTER THE FINAL DISCHARGE OF SUCH ABSENT TITLE INSUR-
   18  ANCE AGENT FROM MILITARY OR NAVAL DUTY, AND EACH SUCH LICENSE OR RENEWAL
   19  SHALL EXPIRE ON SUCH DAY AS IF THAT WERE THE DAY SPECIFIED  THEREIN  FOR
   20  THE EXPIRATION THEREOF.
   21    (3) EXCEPT AS PROVIDED IN SUBSECTION (H) OF THIS SECTION, NO PERSON SO
   22  LICENSED SHALL SOLICIT NEW BUSINESS UNDER SUCH LICENSE.
   23    (G)(1)  IN  THE CASE OF A LICENSE OR LICENSES ISSUED PURSUANT TO PARA-
   24  GRAPH THREE OF SUBSECTION (A) OF THIS SECTION, THE LICENSE  OR  LICENSES
   25  MAY  BE  ISSUED FOR A TERM NOT EXCEEDING NINETY DAYS FROM THE DISABILITY
   26  OF SUCH PERSON, AND THE SUPERINTENDENT MAY  IN  HIS  OR  HER  DISCRETION
   27  RENEW SUCH LICENSE OR LICENSES FOR AN ADDITIONAL TERM OR TERMS OF NINETY
   28  DAYS EACH, NOT EXCEEDING IN THE AGGREGATE FIFTEEN MONTHS.
   29    (2) EXCEPT AS PROVIDED IN SUBSECTION (H) OF THIS SECTION, NO PERSON OR
   30  PERSONS  SO  LICENSED SHALL, BY VIRTUE OF SUCH LICENSE, BE AUTHORIZED TO
   31  SOLICIT, NEGOTIATE OR SELL NEW TITLE INSURANCE.
   32    (H) A TITLE INSURANCE CORPORATION FOR WHOM A DECEASED PERSON, A  DISA-
   33  BLED  PERSON  OR A PERSON ABSENT BECAUSE OF SERVICE IN ANY BRANCH OF THE
   34  ARMED FORCES OF THE UNITED STATES HAD BEEN ACTING AS  A  LICENSED  TITLE
   35  INSURANCE AGENT OR ITS SUB-LICENSEE, MAY GIVE A PERSON OR PERSONS ISSUED
   36  A  TEMPORARY LICENSE PURSUANT TO THIS SECTION WRITTEN APPROVAL TO SOLIC-
   37  IT, NEGOTIATE AND SELL NEW TITLE INSURANCE AND SUCH  PERSON  OR  PERSONS
   38  MAY THEREAFTER DO SO UNDER SUCH TEMPORARY LICENSE, INCLUDING ANY RENEWAL
   39  OR EXTENSION THEREOF, UNLESS AND UNTIL SUCH APPROVAL IS REVOKED IN WRIT-
   40  ING BY THE TITLE INSURANCE CORPORATION.
   41    S  2155.  REVOCATION OR SUSPENSION OF LICENSE OF TITLE INSURANCE AGENT
   42  OR CERTIFICATE OF APPOINTMENT OF A SUB-LICENSEE OR AN ATTORNEY ACTING AS
   43  A TITLE INSURANCE AGENT. (A) THE SUPERINTENDENT  MAY  REFUSE  TO  RENEW,
   44  REVOKE,  OR  MAY  SUSPEND FOR A PERIOD THE SUPERINTENDENT DETERMINES THE
   45  LICENSE OF ANY TITLE INSURANCE AGENT, IF, AFTER NOTICE AND HEARING,  THE
   46  SUPERINTENDENT DETERMINES THAT THE LICENSEE OR ANY SUB-LICENSEE HAS:
   47    (1)  VIOLATED  ANY INSURANCE LAW, OR VIOLATED ANY REGULATION, SUBPOENA
   48  OR ORDER OF THE SUPERINTENDENT OF INSURANCE OR OF ANOTHER STATE'S INSUR-
   49  ANCE COMMISSIONER, OR HAS VIOLATED ANY LAW IN THE COURSE OF HIS  OR  HER
   50  DEALINGS IN SUCH CAPACITY;
   51    (2)  PROVIDED  MATERIALLY INCORRECT, MATERIALLY MISLEADING, MATERIALLY
   52  INCOMPLETE OR MATERIALLY UNTRUE INFORMATION IN THE LICENSE APPLICATION;
   53    (3) OBTAINED OR ATTEMPTED TO OBTAIN  A  LICENSE  THROUGH  MISREPRESEN-
   54  TATION OR FRAUD;
   55    (4)(A) USED FRAUDULENT, COERCIVE OR DISHONEST PRACTICES;
   56    (B) DEMONSTRATED INCOMPETENCE;
       A. 5894                            11
    1    (C) DEMONSTRATED UNTRUSTWORTHINESS; OR
    2    (D) DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT OF BUSINESS
    3  IN THIS STATE OR ELSEWHERE;
    4    (5)  IMPROPERLY  WITHHELD,  MISAPPROPRIATED OR CONVERTED ANY MONIES OR
    5  PROPERTIES RECEIVED IN THE COURSE OF BUSINESS IN  THIS  STATE  OR  ELSE-
    6  WHERE;
    7    (6)  INTENTIONALLY  MISREPRESENTED  THE TERMS OF AN ACTUAL OR PROPOSED
    8  TITLE INSURANCE CONTRACT OR APPLICATION FOR TITLE INSURANCE;
    9    (7) HAS BEEN CONVICTED OF A FELONY;
   10    (8) ADMITTED OR BEEN FOUND TO  HAVE  COMMITTED  ANY  INSURANCE  UNFAIR
   11  TRADE PRACTICE OR FRAUD;
   12    (9)  HAD  A  TITLE  INSURANCE  AGENT  LICENSE,  OR  AN INSURANCE AGENT
   13  LICENSE, OR ITS EQUIVALENT, DENIED, SUSPENDED OR REVOKED  IN  ANY  OTHER
   14  STATE, PROVINCE, DISTRICT OR TERRITORY;
   15    (10)  FORGED  ANOTHER'S  NAME TO AN APPLICATION FOR TITLE INSURANCE OR
   16  FOR ANY OTHER INSURANCE OR TO ANY DOCUMENT RELATED TO A TITLE  INSURANCE
   17  TRANSACTION OR TO ANY OTHER INSURANCE TRANSACTION;
   18    (11) IMPROPERLY USED NOTES OR ANY OTHER REFERENCE MATERIAL TO COMPLETE
   19  AN EXAMINATION FOR AN INSURANCE LICENSE;
   20    (12) FAILED TO COMPLY WITH AN ADMINISTRATIVE OR COURT ORDER IMPOSING A
   21  CHILD SUPPORT OBLIGATION; OR
   22    (13)  FAILED TO PAY STATE INCOME TAX OR COMPLY WITH ANY ADMINISTRATIVE
   23  OR COURT ORDER DIRECTING PAYMENT OF STATE INCOME TAX.
   24    (B) BEFORE REVOKING OR SUSPENDING THE LICENSE OF ANY  TITLE  INSURANCE
   25  AGENT  PURSUANT  TO  THE  PROVISIONS OF THIS ARTICLE, THE SUPERINTENDENT
   26  SHALL, EXCEPT  WHEN  PROCEEDING  PURSUANT  TO  SUBSECTION  (F)  OF  THIS
   27  SECTION, GIVE NOTICE TO THE LICENSEE AND TO EVERY SUB-LICENSEE AND SHALL
   28  HOLD,  OR  CAUSE  TO BE HELD, A HEARING NOT LESS THAN TEN DAYS AFTER THE
   29  GIVING OF SUCH NOTICE.
   30    (C) IF A TITLE INSURANCE AGENT'S LICENSE PURSUANT TO THE PROVISIONS OF
   31  THIS ARTICLE IS REVOKED OR SUSPENDED BY THE SUPERINTENDENT,  HE  OR  SHE
   32  SHALL FORTHWITH GIVE NOTICE TO THE LICENSEE.
   33    (D)  THE  REVOCATION  OR  SUSPENSION  OF  ANY  TITLE INSURANCE AGENT'S
   34  LICENSE PURSUANT TO THE  PROVISIONS  OF  THIS  ARTICLE  SHALL  TERMINATE
   35  FORTHWITH  SUCH  TITLE  INSURANCE  AGENT'S  LICENSE  AND  THE  AUTHORITY
   36  CONFERRED THEREBY UPON ALL SUB-LICENSEES AND ATTORNEYS.
   37    (E)(1) NO INDIVIDUAL OR BUSINESS ENTITY,  WHOSE  LICENSE  AS  A  TITLE
   38  INSURANCE  AGENT  SUBJECT  TO  SUBSECTION  (A)  OF THIS SECTION HAS BEEN
   39  REVOKED, AND NO BUSINESS ENTITY OF WHICH SUCH INDIVIDUAL  IS  A  MEMBER,
   40  OFFICER  OR  DIRECTOR, SHALL BE ENTITLED TO OBTAIN ANY LICENSE UNDER THE
   41  PROVISIONS OF THIS CHAPTER FOR A PERIOD OF ONE YEAR AFTER  SUCH  REVOCA-
   42  TION,  OR, IF SUCH REVOCATION BE JUDICIALLY REVIEWED, FOR ONE YEAR AFTER
   43  THE FINAL DETERMINATION THEREOF AFFIRMING THE ACTION OF THE  SUPERINTEN-
   44  DENT IN REVOKING SUCH LICENSE.
   45    (2)  IF  ANY  SUCH  LICENSE  HELD  BY A BUSINESS ENTITY BE REVOKED, NO
   46  MEMBER, OFFICER OR DIRECTOR OF SUCH BUSINESS ENTITY SHALL BE ENTITLED TO
   47  OBTAIN ANY LICENSE, OR TO  BE  NAMED  AS  A  SUB-LICENSEE  IN  ANY  SUCH
   48  LICENSE,  FOR  THE SAME PERIOD OF TIME, UNLESS THE SUPERINTENDENT DETER-
   49  MINES, AFTER NOTICE AND HEARING, THAT SUCH MEMBER, OFFICER  OR  DIRECTOR
   50  WAS  NOT  PERSONALLY  AT  FAULT  IN  THE MATTER ON ACCOUNT OF WHICH SUCH
   51  LICENSE WAS REVOKED.
   52    (F) IF ANY LICENSED TITLE INSURANCE  AGENT  OR  ANY  PERSON  AGGRIEVED
   53  SHALL  FILE  WITH  THE SUPERINTENDENT A VERIFIED COMPLAINT SETTING FORTH
   54  FACTS TENDING TO SHOW SUFFICIENT GROUND FOR THE REVOCATION OR SUSPENSION
   55  OF ANY TITLE INSURANCE AGENT'S LICENSE, THE SUPERINTENDENT SHALL,  AFTER
       A. 5894                            12
    1  NOTICE AND HEARING, DETERMINE WHETHER SUCH LICENSE SHALL BE SUSPENDED OR
    2  REVOKED.
    3    (G)  THE  SUPERINTENDENT  SHALL  RETAIN  THE  AUTHORITY TO ENFORCE THE
    4  PROVISIONS OF AND IMPOSE ANY PENALTY OR REMEDY AUTHORIZED BY THIS  CHAP-
    5  TER AGAINST ANY INDIVIDUAL OR BUSINESS ENTITY WHO IS UNDER INVESTIGATION
    6  FOR  OR  CHARGED  WITH A VIOLATION OF THIS CHAPTER, EVEN IF THE INDIVID-
    7  UAL'S OR BUSINESS ENTITY'S LICENSE HAS BEEN SURRENDERED, OR HAS  EXPIRED
    8  OR HAS LAPSED BY OPERATION OF LAW.
    9    (H) A LICENSEE SUBJECT TO THIS ARTICLE SHALL REPORT TO THE SUPERINTEN-
   10  DENT  ANY  ADMINISTRATIVE  ACTION  TAKEN AGAINST THE LICENSEE IN ANOTHER
   11  JURISDICTION OR BY ANOTHER GOVERNMENTAL  AGENCY  IN  THIS  STATE  WITHIN
   12  THIRTY  DAYS  OF  THE FINAL DISPOSITION OF THE MATTER. THIS REPORT SHALL
   13  INCLUDE A COPY OF THE ORDER, CONSENT TO ORDER OR  OTHER  RELEVANT  LEGAL
   14  DOCUMENTS.
   15    (I)  WITHIN THIRTY DAYS OF THE INITIAL PRETRIAL HEARING DATE, A LICEN-
   16  SEE SUBJECT TO THIS ARTICLE SHALL REPORT TO THE SUPERINTENDENT ANY CRIM-
   17  INAL PROSECUTION OF THE LICENSEE TAKEN IN ANY JURISDICTION.  THE  REPORT
   18  SHALL INCLUDE A COPY OF THE INITIAL COMPLAINT FILED, THE ORDER RESULTING
   19  FROM THE HEARING AND ANY OTHER RELEVANT LEGAL DOCUMENTS.
   20    (J)(1)  THE  SUPERINTENDENT MAY REVOKE OR MAY SUSPEND FOR A PERIOD THE
   21  SUPERINTENDENT DETERMINES THE CERTIFICATE OF APPOINTMENT OF ANY  SUB-LI-
   22  CENSEE  OR  ATTORNEY ISSUED PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED
   23  FIFTY-EIGHT OF THIS ARTICLE, IF, AFTER NOTICE AND  HEARING,  THE  SUPER-
   24  INTENDENT  DETERMINES  THAT  SUCH SUB-LICENSEE OR ATTORNEY HAS COMMITTED
   25  ANY ACT SPECIFIED IN PARAGRAPHS ONE THROUGH THIRTEEN OF  SUBSECTION  (A)
   26  OF  THIS  SECTION  OR IF SUCH ATTORNEY'S LICENSE TO PRACTICE LAW IN THIS
   27  STATE IS SUSPENDED OR REVOKED.
   28    (2) NO SUB-LICENSEE OR ATTORNEY WHOSE CERTIFICATE OF  APPOINTMENT  HAS
   29  BEEN REVOKED SHALL BE ENTITLED TO OBTAIN A CERTIFICATE OF APPOINTMENT OR
   30  LICENSE  UNDER  THE  PROVISIONS  OF THIS ARTICLE FOR ONE YEAR AFTER SUCH
   31  REVOCATION, OR, IF SUCH REVOCATION BE JUDICIALLY REVIEWED, FOR ONE  YEAR
   32  AFTER THE FINAL DETERMINATION THEREOF AFFIRMING THE ACTION OF THE SUPER-
   33  INTENDENT IN REVOKING SUCH CERTIFICATE.
   34    (3) THE IMPOSITION OF ANY PENALTY UNDER THIS ARTICLE AGAINST AN ATTOR-
   35  NEY  SHALL NOT LIMIT THE AUTHORITY OF ANY COURT TO IMPOSE ANY DISCIPLINE
   36  AGAINST THE ATTORNEY PURSUANT TO ANY OTHER LAW OR RULE.
   37    S 2156. PENALTIES FOR VIOLATIONS. (A) THE SUPERINTENDENT, IN  LIEU  OF
   38  REVOKING  OR  SUSPENDING  THE  LICENSE OF A LICENSEE OR A CERTIFICATE OF
   39  APPOINTMENT OF A SUB-LICENSEE OR AN  ATTORNEY  IN  ACCORDANCE  WITH  THE
   40  PROVISIONS  OF THIS ARTICLE, MAY IN ANY ONE PROCEEDING BY ORDER, REQUIRE
   41  THE LICENSEE, SUB-LICENSEE OR ATTORNEY TO PAY  TO  THE  PEOPLE  OF  THIS
   42  STATE  A  PENALTY  IN  A SUM NOT EXCEEDING FIVE HUNDRED DOLLARS FOR EACH
   43  OFFENSE, AND A PENALTY  IN  A  SUM  NOT  EXCEEDING  TWENTY-FIVE  HUNDRED
   44  DOLLARS IN THE AGGREGATE FOR ALL OFFENSES.
   45    (B)  UPON  THE FAILURE OF SUCH A LICENSEE, SUB-LICENSEE OR ATTORNEY TO
   46  PAY SUCH PENALTY ORDERED PURSUANT TO  SUBSECTION  (A)  OF  THIS  SECTION
   47  WITHIN  TWENTY  DAYS  AFTER  THE MAILING OF SUCH ORDER, POSTAGE PREPAID,
   48  REGISTERED, AND ADDRESSED TO THE LAST KNOWN PLACE OF  BUSINESS  OF  SUCH
   49  LICENSEE,  SUB-LICENSEE  OR  ATTORNEY, UNLESS SUCH ORDER IS STAYED BY AN
   50  ORDER OF A COURT  OF  COMPETENT  JURISDICTION,  THE  SUPERINTENDENT  MAY
   51  REVOKE THE LICENSE OF SUCH LICENSEE OR THE CERTIFICATE OF APPOINTMENT OF
   52  SUCH  SUB-LICENSEE  OR ATTORNEY ISSUED UNDER THIS ARTICLE OR MAY SUSPEND
   53  THE SAME FOR SUCH PERIOD AS HE OR SHE DETERMINES.
   54    (C) IN ADDITION TO OR IN LIEU OF REVOKING OR SUSPENDING THE LICENSE OF
   55  A LICENSEE OR A CERTIFICATE OF  APPOINTMENT  OF  A  SUB-LICENSEE  OR  AN
   56  ATTORNEY IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, AND IN ADDI-
       A. 5894                            13
    1  TION  TO OR IN LIEU OF ANY PENALTY IMPOSED PURSUANT TO SUBSECTION (A) OF
    2  THIS SECTION, THE SUPERINTENDENT MAY REQUIRE A LICENSEE, SUB-LICENSEE OR
    3  ATTORNEY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A SUM EQUAL TO THE
    4  TITLE  INSURANCE  PREMIUM  OR  OTHER COMPENSATION RECEIVED BY THE PERSON
    5  FOUND TO HAVE VIOLATED SECTION TWO THOUSAND ONE  HUNDRED  FIFTY-FIVE  OF
    6  THIS  ARTICLE,  IN CONNECTION WITH ANY TRANSACTION WHICH THE SUPERINTEN-
    7  DENT FINDS TO HAVE CONSTITUTED A GROUND FOR  SUCH  A  VIOLATION,  EXCEPT
    8  THAT  SUCH SUM SHALL NOT INCLUDE ANY PORTION OF A PREMIUM DUE TO A TITLE
    9  INSURANCE CORPORATION.
   10    (D) NOTHING IN THIS ARTICLE SHALL LIMIT THE AUTHORITY  OF  THE  SUPER-
   11  INTENDENT  TO MAINTAIN AN ACTION FOR THE PURPOSE OF OBTAINING AN INJUNC-
   12  TION PURSUANT TO SECTION THREE HUNDRED EIGHT OF THE  FINANCIAL  SERVICES
   13  LAW.
   14    S  2157. REVOKED LICENSEES. (A)(1) NO PERSON SUBJECT TO THE PROVISIONS
   15  OF THIS CHAPTER WHOSE LICENSE UNDER THIS ARTICLE HAS  BEEN  REVOKED,  OR
   16  WHOSE LICENSE TO ENGAGE IN THE BUSINESS OF INSURANCE IN ANY CAPACITY HAS
   17  BEEN  REVOKED BY ANY OTHER STATE OR TERRITORY OF THE UNITED STATES SHALL
   18  BECOME EMPLOYED OR APPOINTED BY A TITLE INSURANCE AGENT AS  AN  OFFICER,
   19  DIRECTOR, MANAGER, CONTROLLING PERSON OR FOR OTHER SERVICES, WITHOUT THE
   20  PRIOR  WRITTEN  APPROVAL OF THE SUPERINTENDENT, UNLESS SUCH SERVICES ARE
   21  FOR MAINTENANCE OR ARE CLERICAL OR MINISTERIAL IN NATURE.
   22    (2) NO PERSON SUBJECT TO THE PROVISIONS OF THIS CHAPTER SHALL KNOWING-
   23  LY EMPLOY OR APPOINT ANY PERSON WHOSE LICENSE ISSUED UNDER THIS  ARTICLE
   24  HAS  BEEN  REVOKED, OR WHOSE LICENSE TO ENGAGE IN THE BUSINESS OF INSUR-
   25  ANCE IN ANY CAPACITY HAS BEEN REVOKED BY ANY OTHER STATE OR TERRITORY OF
   26  THE UNITED STATES, AS AN OFFICER, DIRECTOR, MANAGER, CONTROLLING  PERSON
   27  OR  FOR OTHER SERVICES, WITHOUT THE PRIOR WRITTEN APPROVAL OF THE SUPER-
   28  INTENDENT, UNLESS SUCH SERVICES ARE FOR MAINTENANCE OR ARE  CLERICAL  OR
   29  MINISTERIAL IN NATURE.
   30    (3)  NO  CORPORATION  OR PARTNERSHIP SUBJECT TO THE PROVISIONS OF THIS
   31  CHAPTER SHALL KNOWINGLY PERMIT ANY PERSON  WHOSE  LICENSE  ISSUED  UNDER
   32  THIS  ARTICLE  HAS BEEN REVOKED, OR WHOSE LICENSE TO ENGAGE IN THE BUSI-
   33  NESS OF INSURANCE IN ANY CAPACITY HAS BEEN REVOKED BY ANY  OTHER  STATE,
   34  OR TERRITORY OF THE UNITED STATES, TO BE A SHAREHOLDER OR HAVE AN INTER-
   35  EST IN SUCH CORPORATION OR PARTNERSHIP, NOR SHALL ANY SUCH PERSON BECOME
   36  A SHAREHOLDER OR PARTNER IN SUCH CORPORATION OR PARTNERSHIP, WITHOUT THE
   37  PRIOR WRITTEN APPROVAL OF THE SUPERINTENDENT.
   38    (4)  FOR  THE  PURPOSE  OF  THIS SECTION A "CONTROLLING PERSON" IS ANY
   39  PERSON WHO OR WHICH, DIRECTLY OR INDIRECTLY, HAS THE POWER TO DIRECT  OR
   40  CAUSE  TO  BE  DIRECTED  THE  MANAGEMENT,  CONTROL OR ACTIVITIES OF SUCH
   41  LICENSEE.
   42    (B) THE SUPERINTENDENT MAY  APPROVE  THE  EMPLOYMENT,  APPOINTMENT  OR
   43  PARTICIPATION OF ANY SUCH PERSON WHOSE LICENSE HAS BEEN REVOKED:
   44    (1)  IF  HE  OR SHE DETERMINES THAT THE DUTIES AND RESPONSIBILITIES OF
   45  SUCH PERSON ARE SUBJECT TO APPROPRIATE SUPERVISION AND THAT SUCH  DUTIES
   46  AND  RESPONSIBILITIES  WILL  NOT HAVE AN ADVERSE EFFECT UPON THE PUBLIC,
   47  OTHER LICENSEES, OR THE LICENSEE PROPOSING EMPLOYMENT OR APPOINTMENT  OF
   48  SUCH PERSON; OR
   49    (2)  IF  SUCH PERSON HAS FILED AN APPLICATION FOR RELICENSING PURSUANT
   50  TO THIS ARTICLE  AND  THE  APPLICATION  FOR  RELICENSING  HAS  NOT  BEEN
   51  APPROVED  OR  DENIED WITHIN ONE HUNDRED TWENTY DAYS FOLLOWING THE FILING
   52  THEREOF, UNLESS THE SUPERINTENDENT DETERMINES WITHIN THE SAID TIME  THAT
   53  EMPLOYMENT OR APPOINTMENT OF SUCH PERSON BY A LICENSEE IN THE CONDUCT OF
   54  AN INSURANCE BUSINESS WOULD NOT BE IN THE PUBLIC INTEREST.
   55    (C) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE OWNERSHIP OF
   56  SHARES  OF  ANY  CORPORATION  LICENSED  PURSUANT  TO THIS CHAPTER IF THE
       A. 5894                            14
    1  SHARES  OF  SUCH  CORPORATION  ARE  PUBLICLY  HELD  AND  TRADED  IN  THE
    2  OVER-THE-COUNTER  MARKET  OR  UPON  ANY  NATIONAL OR REGIONAL SECURITIES
    3  EXCHANGE.
    4    (D)  THE  PROVISIONS  OF  THIS  SECTION  SHALL  APPLY TO RELATIONSHIPS
    5  CREATED OR PROPOSED ON OR AFTER THE EFFECTIVE DATE OF THIS  SECTION,  AS
    6  WELL AS TO ANY PERSON WHOSE LICENSE IS REVOKED ON OR AFTER SUCH DATE.
    7    S  2158.  CERTIFICATE  OF  APPOINTMENT  AND NOTICE OF TERMINATION OF A
    8  TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY. (A) EVERY TITLE  INSUR-
    9  ANCE  CORPORATION  DOING BUSINESS IN THIS STATE SHALL FILE A CERTIFICATE
   10  OF APPOINTMENT IN SUCH FORM AS THE SUPERINTENDENT MAY PRESCRIBE IN ORDER
   11  TO APPOINT TITLE INSURANCE AGENTS OR ATTORNEYS LICENSED TO PRACTICE  LAW
   12  IN  THIS  STATE TO ACT AS TITLE INSURANCE AGENTS ON BEHALF OF SUCH TITLE
   13  INSURANCE CORPORATIONS.
   14    (B)(1) TO APPOINT A TITLE INSURANCE AGENT, THE APPOINTING TITLE INSUR-
   15  ANCE CORPORATION SHALL FILE, IN A FORMAT APPROVED BY THE SUPERINTENDENT,
   16  A CERTIFICATE OF APPOINTMENT STATING THAT IT HAS MADE SUCH INVESTIGATION
   17  OF THE PROSPECTIVE TITLE INSURANCE AGENT AS IT  DEEMED  APPROPRIATE  AND
   18  THAT SUCH TITLE INSURANCE CORPORATION APPOINTS SUCH PROSPECTIVE LICENSEE
   19  SO  NAMED TO ACT AS ITS AGENT IF A LICENSE AS A TITLE INSURANCE AGENT IS
   20  ISSUED BY THE SUPERINTENDENT TO THE PROSPECTIVE LICENSEE.  SUCH  CERTIF-
   21  ICATE  SHALL  BE  SUBSCRIBED BY AN OFFICER OF THE TITLE INSURANCE CORPO-
   22  RATION AND AFFIRMED BY SUCH OFFICER AS TRUE UNDER PENALTY OF PERJURY.
   23    (2) TO APPOINT AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS  STATE  TO
   24  ACT AS A TITLE INSURANCE AGENT IN THIS STATE, PURSUANT TO SUBSECTION (F)
   25  OF SECTION TWO THOUSAND ONE HUNDRED FIFTY-TWO OF THIS ARTICLE, OR TO ACT
   26  UNDER  A  LICENSE  ISSUED  TO A BUSINESS ENTITY, PURSUANT TO SECTION TWO
   27  THOUSAND ONE HUNDRED FIFTY-THREE OF THIS ARTICLE, THE  APPOINTING  TITLE
   28  INSURANCE  CORPORATION  SHALL  FILE,  IN A FORMAT APPROVED BY THE SUPER-
   29  INTENDENT, A CERTIFICATE OF APPOINTMENT STATING THAT IT  HAS  MADE  SUCH
   30  INVESTIGATION  OF  THE  ATTORNEY  AS  IT DEEMS APPROPRIATE AND THAT SUCH
   31  TITLE INSURANCE CORPORATION APPOINTS SUCH ATTORNEY SO NAMED  TO  ACT  AS
   32  ITS  AGENT.  SUCH  CERTIFICATE  SHALL BE SUBSCRIBED BY AN OFFICER OF THE
   33  TITLE INSURANCE CORPORATION AND AFFIRMED BY SUCH OFFICER AS  TRUE  UNDER
   34  PENALTY OF PERJURY.
   35    (3)  TO APPOINT A SUB-LICENSEE TO ACT AS A TITLE INSURANCE AGENT UNDER
   36  A LICENSE ISSUED TO A BUSINESS ENTITY, PURSUANT TO SECTION TWO  THOUSAND
   37  ONE  HUNDRED FIFTY-THREE OF THIS ARTICLE, THE APPOINTING TITLE INSURANCE
   38  CORPORATION SHALL FILE, IN A FORMAT APPROVED BY  THE  SUPERINTENDENT,  A
   39  CERTIFICATE  OF  APPOINTMENT STATING THAT IT HAS MADE SUCH INVESTIGATION
   40  OF THE SUB-LICENSEE AS IT DEEMS APPROPRIATE AND THAT SUCH  TITLE  INSUR-
   41  ANCE  CORPORATION  APPOINTS  SUCH  INDIVIDUAL  SO  NAMED  TO ACT AS SUCH
   42  SUB-LICENSEE.  SUCH CERTIFICATE SHALL BE SUBSCRIBED BY AN OFFICER OF THE
   43  TITLE INSURANCE CORPORATION AND AFFIRMED BY SUCH OFFICER AS  TRUE  UNDER
   44  PENALTY OF PERJURY.
   45    (C) CERTIFICATES OF APPOINTMENT SHALL BE VALID UNTIL (1) TERMINATED BY
   46  THE  APPOINTING  TITLE  INSURANCE  CORPORATION  AFTER  A  TERMINATION IN
   47  ACCORDANCE WITH THE PROVISIONS OF THE AGENCY CONTRACT; (2)  THE  LICENSE
   48  OR  THE CERTIFICATE OF APPOINTMENT IS SUSPENDED OR REVOKED BY THE SUPER-
   49  INTENDENT; OR (3) THE LICENSE EXPIRES AND IS NOT RENEWED.
   50    (D) EVERY TITLE INSURANCE CORPORATION OR THE AUTHORIZED REPRESENTATIVE
   51  OF THE TITLE INSURANCE CORPORATION DOING BUSINESS IN THIS  STATE  SHALL,
   52  UPON  TERMINATION  OF  THE  CERTIFICATE  OF  APPOINTMENT AS SET FORTH IN
   53  SUBSECTION (C) OF THIS SECTION OF ANY TITLE INSURANCE AGENT LICENSED  IN
   54  THIS STATE, OR OF ANY SUB-LICENSEE, OR OF ANY ATTORNEY LICENSED TO PRAC-
   55  TICE  LAW IN THIS STATE, OR UPON TERMINATION FOR CAUSE FOR ACTIVITIES AS
   56  SET FORTH  IN  SUBSECTION  (A)  OF  SECTION  TWO  THOUSAND  ONE  HUNDRED
       A. 5894                            15
    1  FIFTY-FIVE  OF  THIS  ARTICLE,  OF THE CERTIFICATE OF APPOINTMENT OF ANY
    2  TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY, FILE  WITH  THE  SUPER-
    3  INTENDENT  WITHIN  THIRTY  DAYS  A STATEMENT, IN SUCH FORM AS THE SUPER-
    4  INTENDENT  MAY  PRESCRIBE, OF THE FACTS RELATIVE TO SUCH TERMINATION FOR
    5  CAUSE.  THE TITLE INSURANCE CORPORATION,  OR  ITS  AUTHORIZED  REPRESEN-
    6  TATIVE  SHALL  PROVIDE,  WITHIN FIFTEEN DAYS AFTER NOTIFICATION HAS BEEN
    7  SENT TO THE SUPERINTENDENT, A COPY  OF  THE  STATEMENT  FILED  WITH  THE
    8  SUPERINTENDENT TO THE TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY AT
    9  HIS  OR  HER  LAST  KNOWN  ADDRESS  BY  CERTIFIED  MAIL,  RETURN RECEIPT
   10  REQUESTED, POSTAGE PREPAID OR BY OVERNIGHT DELIVERY USING  A  NATIONALLY
   11  RECOGNIZED  CARRIER.    EVERY STATEMENT MADE PURSUANT TO THIS SUBSECTION
   12  SHALL BE DEEMED A PRIVILEGED COMMUNICATION.
   13    (E) THE TITLE INSURANCE CORPORATION, OR ITS AUTHORIZED REPRESENTATIVES
   14  SHALL PROMPTLY NOTIFY THE SUPERINTENDENT IN A FORMAT ACCEPTABLE  TO  THE
   15  SUPERINTENDENT  IF,  UPON  FURTHER  REVIEW  OR  INVESTIGATION, THE TITLE
   16  INSURANCE CORPORATION OR ITS AUTHORIZED REPRESENTATIVE  DISCOVERS  ADDI-
   17  TIONAL INFORMATION THAT WOULD HAVE BEEN REPORTABLE TO THE SUPERINTENDENT
   18  HAD  THE TITLE INSURANCE CORPORATION THEN KNOWN OF ITS EXISTENCE.  EVERY
   19  STATEMENT MADE PURSUANT TO THIS SUBSECTION SHALL BE DEEMED A  PRIVILEGED
   20  COMMUNICATION.
   21    (F)  (1) WITHIN FIFTEEN DAYS AFTER MAKING THE NOTIFICATION REQUIRED BY
   22  SUBSECTION (E) OF THIS SECTION THE TITLE INSURANCE  CORPORATION  OR  ITS
   23  AUTHORIZED  REPRESENTATIVE  SHALL MAIL A COPY OF THE NOTIFICATION TO THE
   24  TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY AT HIS OR HER LAST KNOWN
   25  ADDRESS BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID  OR
   26  BY OVERNIGHT DELIVERY USING A NATIONALLY RECOGNIZED CARRIER.
   27    (2)  WITHIN  THIRTY DAYS AFTER THE TITLE INSURANCE AGENT, SUB-LICENSEE
   28  OR ATTORNEY HAS RECEIVED THE ORIGINAL OR  ADDITIONAL  NOTIFICATION,  THE
   29  TITLE  INSURANCE  AGENT,  SUB-LICENSEE  OR  ATTORNEY  MAY  FILE  WRITTEN
   30  COMMENTS CONCERNING THE SUBSTANCE OF THE NOTIFICATION  WITH  THE  SUPER-
   31  INTENDENT. THE TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY SHALL, BY
   32  THE  SAME  MEANS,  SIMULTANEOUSLY  SEND  A  COPY  OF THE COMMENTS TO THE
   33  REPORTING TITLE INSURANCE CORPORATION OR ITS  AUTHORIZED  REPRESENTATIVE
   34  AND  THE  COMMENTS  SHALL BECOME A PART OF THE SUPERINTENDENT'S FILE AND
   35  ACCOMPANY EVERY COPY OF A REPORT DISTRIBUTED OR DISCLOSED FOR ANY REASON
   36  ABOUT THE TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY  AS  PERMITTED
   37  BY SECTION ONE HUNDRED TEN OF THIS CHAPTER.
   38    (G)(1) IN THE ABSENCE OF FRAUD, BAD FAITH OR GROSS NEGLIGENCE, A TITLE
   39  INSURANCE  CORPORATION  OR ITS AUTHORIZED REPRESENTATIVE, A TITLE INSUR-
   40  ANCE AGENT, A SUB-LICENSEE,  AN  ATTORNEY,  THE  SUPERINTENDENT,  OR  AN
   41  ORGANIZATION  OF  WHICH THE SUPERINTENDENT IS A MEMBER AND THAT COMPILES
   42  THE INFORMATION AND MAKES IT AVAILABLE TO  OTHER  INSURANCE  SUPERINTEN-
   43  DENTS  OR  COMMISSIONERS OR REGULATORY OR LAW ENFORCEMENT AGENCIES SHALL
   44  NOT BE SUBJECT TO CIVIL LIABILITY, AND A CIVIL CAUSE OF  ACTION  OF  ANY
   45  NATURE SHALL NOT ARISE AGAINST THESE ENTITIES OR THEIR RESPECTIVE AGENTS
   46  OR  EMPLOYEES AS A RESULT OF ANY STATEMENT OR INFORMATION REQUIRED BY OR
   47  PROVIDED PURSUANT TO THIS SECTION OR ANY  INFORMATION  RELATING  TO  ANY
   48  STATEMENT THAT MAY BE REQUESTED IN WRITING BY THE SUPERINTENDENT, FROM A
   49  TITLE  INSURANCE CORPORATION, A TITLE INSURANCE AGENT, A SUB-LICENSEE OR
   50  AN ATTORNEY, OR THE AUTHORIZED REPRESENTATIVE  OF  ANY  OF  THEM,  OR  A
   51  STATEMENT BY A TERMINATING TITLE INSURANCE CORPORATION OR THE AUTHORIZED
   52  REPRESENTATIVE  OF THE TITLE INSURANCE CORPORATION, OR A TITLE INSURANCE
   53  AGENT, SUB-LICENSEE OR ATTORNEY TO A TITLE INSURANCE CORPORATION OR  THE
   54  AUTHORIZED  REPRESENTATIVE  OF  THE  TITLE  INSURANCE CORPORATION, TITLE
   55  INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY LIMITED SOLELY AND EXCLUSIVELY
   56  TO WHETHER A TERMINATION FOR CAUSE WAS REPORTED TO  THE  SUPERINTENDENT,
       A. 5894                            16
    1  PROVIDED THAT THE PROPRIETY OF ANY TERMINATION FOR CAUSE IS CERTIFIED IN
    2  WRITING  BY  AN OFFICER OR AUTHORIZED REPRESENTATIVE OF THE TITLE INSUR-
    3  ANCE CORPORATION TERMINATING THE RELATIONSHIP.
    4    (2)  IN  ANY  ACTION  BROUGHT  AGAINST A PERSON THAT MAY HAVE IMMUNITY
    5  UNDER PARAGRAPH ONE OF THIS SUBSECTION FOR MAKING ANY STATEMENT REQUIRED
    6  BY THIS SECTION OR PROVIDING ANY INFORMATION RELATING TO  ANY  STATEMENT
    7  THAT  MAY  BE  REQUESTED  BY  THE SUPERINTENDENT, THE PARTY BRINGING THE
    8  ACTION SHALL PLEAD SPECIFICALLY IN ANY ALLEGATION THAT PARAGRAPH ONE  OF
    9  THIS  SUBSECTION  DOES NOT APPLY BECAUSE THE PERSON MAKING THE STATEMENT
   10  OR PROVIDING THE INFORMATION  DID  SO  FRAUDULENTLY,  IN  BAD  FAITH  OR
   11  THROUGH GROSS NEGLIGENCE.
   12    (3)  PARAGRAPHS  ONE  AND TWO OF THIS SUBSECTION SHALL NOT ABROGATE OR
   13  MODIFY ANY EXISTING STATUTORY OR COMMON LAW PRIVILEGES OR IMMUNITIES.
   14    (H)(1) ANY DOCUMENTS, MATERIALS OR OTHER INFORMATION IN THE CONTROL OR
   15  POSSESSION OF THE SUPERINTENDENT THAT ARE FURNISHED BY A TITLE INSURANCE
   16  CORPORATION, TITLE INSURANCE  AGENT,  SUB-LICENSEE  OR  ATTORNEY  OR  AN
   17  EMPLOYEE  OR  AGENT  THEREOF  ACTING  ON BEHALF THEREOF, RELATING TO THE
   18  TERMINATION OF A TITLE INSURANCE AGENT, SUB-LICENSEE OR ATTORNEY  PURSU-
   19  ANT  TO  THIS  SECTION  OR OBTAINED BY THE SUPERINTENDENT IN AN INVESTI-
   20  GATION PURSUANT TO THIS SECTION SHALL BE CONFIDENTIAL BY LAW AND  PRIVI-
   21  LEGED,  SHALL  NOT  BE SUBJECT TO FREEDOM OF INFORMATION REQUESTS, SHALL
   22  NOT BE SUBJECT TO SUBPOENA, AND SHALL NOT BE  SUBJECT  TO  DISCOVERY  OR
   23  ADMISSIBLE  IN EVIDENCE IN ANY PRIVATE CIVIL ACTION. HOWEVER, THE SUPER-
   24  INTENDENT IS AUTHORIZED TO USE THE DOCUMENTS, MATERIALS OR OTHER  INFOR-
   25  MATION  IN  FURTHERANCE  OF  ANY REGULATORY OR LEGAL ACTION BROUGHT AS A
   26  PART OF THE SUPERINTENDENT'S DUTIES. FURTHER, THIS PARAGRAPH  SHALL  NOT
   27  APPLY TO ANY DOCUMENTS, MATERIALS OR OTHER INFORMATION IN THE CONTROL OR
   28  POSSESSION  OF ANY PERSON OR ENTITY OTHER THAN THE SUPERINTENDENT OR THE
   29  DEPARTMENT, REGARDLESS OF WHETHER OR NOT SUCH  DOCUMENTS,  MATERIALS  OR
   30  OTHER  INFORMATION  ARE  IDENTICAL OR SIMILAR TO DOCUMENTS, MATERIALS OR
   31  OTHER INFORMATION IN THE SUPERINTENDENT'S CONTROL OR POSSESSION TO WHICH
   32  THE CONFIDENTIALITY RESTRICTIONS OF THIS PARAGRAPH APPLY.
   33    (2) NEITHER THE SUPERINTENDENT NOR ANY PERSON WHO RECEIVED  DOCUMENTS,
   34  MATERIALS  OR  OTHER INFORMATION WHILE ACTING UNDER THE AUTHORITY OF THE
   35  SUPERINTENDENT SHALL BE PERMITTED OR REQUIRED TO TESTIFY IN ANY  PRIVATE
   36  CIVIL ACTION CONCERNING ANY CONFIDENTIAL DOCUMENTS, MATERIALS, OR INFOR-
   37  MATION SUBJECT TO THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBSECTION.
   38    (3)  NOTHING  IN  THIS  ARTICLE SHALL PROHIBIT THE SUPERINTENDENT FROM
   39  RELEASING FINAL, ADJUDICATED ACTIONS INCLUDING  FOR  CAUSE  TERMINATIONS
   40  THAT ARE OPEN TO PUBLIC INSPECTION PURSUANT TO ARTICLE SIX OF THE PUBLIC
   41  OFFICERS LAW TO A DATA BASE OR OTHER CLEARINGHOUSE SERVICE MAINTAINED BY
   42  THE  NATIONAL  ASSOCIATION OF INSURANCE COMMISSIONERS, ITS AFFILIATES OR
   43  SUBSIDIARIES.
   44    (I) A TITLE INSURANCE CORPORATION, A TITLE INSURANCE AGENT, A  SUB-LI-
   45  CENSEE  OR  AN  ATTORNEY  THAT  FAILS  TO  REPORT  AS REQUIRED UNDER THE
   46  PROVISIONS OF THIS SECTION OR THAT IS FOUND  TO  HAVE  REPORTED  FRAUDU-
   47  LENTLY, IN BAD FAITH OR THROUGH GROSS NEGLIGENCE BY A COURT OF COMPETENT
   48  JURISDICTION  MAY, AFTER NOTICE AND HEARING, HAVE ITS LICENSE OR CERTIF-
   49  ICATE OF APPOINTMENT ISSUED UNDER THIS CHAPTER SUSPENDED OR REVOKED  AND
   50  MAY  BE  FINED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF  THIS CHAPTER,
   51  PROVIDED, HOWEVER, THAT A TITLE INSURANCE CORPORATION MAY BE FINED UP TO
   52  FIVE THOUSAND DOLLARS. IN THE CASE OF A DOMESTIC TITLE INSURANCE  CORPO-
   53  RATION,  THE  PROVISIONS  OF  ARTICLE SEVENTY-FOUR OF THIS CHAPTER SHALL
   54  ALSO APPLY.
   55    S 2159. COMMISSIONS; PREMIUM SPLITTING AND OTHER  PROHIBITED  PAYMENTS
   56  OR  RECEIPTS OF PAYMENTS. (A) NO TITLE INSURANCE CORPORATION DOING BUSI-
       A. 5894                            17
    1  NESS IN THIS STATE, AND NO AGENT OR OTHER REPRESENTATIVE THEREOF, EXCEPT
    2  AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, SHALL PAY ANY  COMMISSION
    3  OR  OTHER  COMPENSATION  TO  ANY  PERSON FOR ACTING AS A TITLE INSURANCE
    4  AGENT IN THIS STATE, EXCEPT TO A PERSON LICENSED OR OTHERWISE AUTHORIZED
    5  TO  ACT  AS A TITLE INSURANCE AGENT OF SUCH TITLE INSURANCE CORPORATION.
    6  NO TITLE INSURANCE AGENT OR ANY REPRESENTATIVE OF SUCH AGENT  SHALL  PAY
    7  ANY  COMMISSION OR COMPENSATION, EXCEPT AS PROVIDED IN SUBSECTION (E) OF
    8  THIS SECTION, TO ANY OTHER TITLE INSURANCE AGENT OR  ANY  REPRESENTATIVE
    9  OF SUCH AGENT.
   10    (B)  NO TITLE INSURANCE AGENT SHALL RECEIVE ANY COMMISSIONS OR FEES OR
   11  SHARES THEREOF IN CONNECTION WITH   INSURANCE COVERAGES  PLACED  FOR  OR
   12  INSURANCES SERVICES RENDERED TO THE STATE, ITS AGENCIES AND DEPARTMENTS,
   13  PUBLIC  BENEFIT  CORPORATIONS,  MUNICIPALITIES  AND  OTHER  GOVERNMENTAL
   14  SUBDIVISIONS IN THIS STATE, UNLESS SUCH TITLE INSURANCE  AGENT  ACTUALLY
   15  PLACED  INSURANCE  COVERAGES ON BEHALF OF OR RENDERED INSURANCE SERVICES
   16  TO THE STATE, ITS AGENCIES AND DEPARTMENTS, PUBLIC BENEFIT CORPORATIONS,
   17  MUNICIPALITIES AND OTHER GOVERNMENTAL SUBDIVISIONS IN THIS STATE.
   18    (C) THE SUPERINTENDENT SHALL, BY REGULATION, REQUIRE  TITLE  INSURANCE
   19  AGENTS  TO  FILE DISCLOSURE STATEMENTS WITH THE INSURANCE DEPARTMENT AND
   20  THE MOST SENIOR OFFICIAL OF THE GOVERNMENTAL UNIT INVOLVED, WITH RESPECT
   21  TO ANY INSURANCE COVERAGES PLACED FOR OR INSURANCE SERVICES RENDERED  TO
   22  THE  STATE,  ITS  AGENCIES AND DEPARTMENTS, PUBLIC BENEFIT CORPORATIONS,
   23  MUNICIPALITIES AND OTHER GOVERNMENTAL SUBDIVISIONS IN THIS STATE.
   24    (D) NO TITLE INSURANCE AGENT OR ITS SUB-LICENSEES, EMPLOYEES,  OR  ANY
   25  OTHER  PERSON ACTING FOR OR ON ITS BEHALF, SHALL, EXCEPT AS PERMITTED IN
   26  SECTION TWO THOUSAND THREE HUNDRED TWENTY-FOUR OF THIS CHAPTER: (1) MAKE
   27  ANY REBATE OF ANY PORTION OF THE FEE, PREMIUM OR CHARGE MADE, OR (2) PAY
   28  OR GIVE EITHER DIRECTLY OR INDIRECTLY, ANY COMMISSION, ANY PART  OF  ITS
   29  FEES  OR  CHARGES,  OR  ANY OTHER CONSIDERATION OR VALUABLE THING, AS AN
   30  INDUCEMENT FOR, OR AS COMPENSATION FOR, ANY TITLE INSURANCE BUSINESS  TO
   31  ANY  APPLICANT FOR INSURANCE OR TO ANY PERSON ACTING AS AGENT, REPRESEN-
   32  TATIVE, ATTORNEY, OR EMPLOYEE OF THE OWNER,  LESSEE,  MORTGAGEE  OR  THE
   33  PROSPECTIVE  OWNER,  LESSEE,  OR MORTGAGEE OF THE REAL PROPERTY WHICH IS
   34  THE SUBJECT OF A TITLE INSURANCE POLICY.
   35    (E) NOTHING IN THIS SECTION SHALL  BE  CONSTRUED  AS  PROHIBITING  THE
   36  PAYMENT  TO  ANY  PERSON  OF  A  BONA FIDE SALARY, COMPENSATION OR OTHER
   37  PAYMENT FOR GOODS OR FACILITIES ACTUALLY FURNISHED OR FOR SERVICES ACTU-
   38  ALLY PERFORMED. SUCH PAYMENT SHALL NOT EXCEED THE REASONABLE AND CUSTOM-
   39  ARY COMPENSATION FOR  THE  GOODS  OR  SERVICES  OR  FACILITIES  ACTUALLY
   40  RENDERED OR FURNISHED.
   41    (F)  A  TITLE  INSURANCE AGENT SHALL NOT DIRECTLY OR INDIRECTLY ACCEPT
   42  ANY PAYMENT FOR OR REIMBURSEMENT OF ANY FEE, FINE OR PENALTY IMPOSED  BY
   43  THE  SUPERINTENDENT  ON THE TITLE INSURANCE AGENT PURSUANT TO THIS CHAP-
   44  TER.
   45    S 2160. ACTING FOR OR AIDING UNLICENSED OR UNAUTHORIZED  TITLE  INSUR-
   46  ANCE  CORPORATIONS.  NO  PERSON SHALL IN THIS STATE ACT AS AGENT FOR ANY
   47  TITLE INSURANCE CORPORATION WHICH IS NOT LICENSED OR AUTHORIZED TO DO  A
   48  TITLE INSURANCE BUSINESS IN THIS STATE, IN THE DOING OF ANY TITLE INSUR-
   49  ANCE  BUSINESS IN THIS STATE OR IN SOLICITING, NEGOTIATING OR EFFECTUAT-
   50  ING ANY TITLE INSURANCE, OR SHALL IN THIS STATE IN ANY  WAY  OR  MANNER,
   51  EXCEPT  BY PROVIDING A TITLE SEARCH, AID ANY SUCH TITLE INSURANCE CORPO-
   52  RATION IN EFFECTING ANY TITLE INSURANCE POLICY.
   53    S 2161. CONTROLLED BUSINESS. A TITLE INSURANCE AGENT SHALL  NOT  ALLOW
   54  AN ORIGINATOR TO HOLD A FINANCIAL INTEREST IN SUCH TITLE INSURANCE AGENT
   55  UNLESS  ALL  OF  THE  FOLLOWING  REQUIREMENTS ARE MET AT THE TIME OF THE
   56  ACQUISITION OF SUCH FINANCIAL INTEREST AND AT ALL TIMES THEREAFTER:
       A. 5894                            18
    1    (A) THE ORIGINATOR MAKING A REFERRAL OF TITLE INSURANCE  BUSINESS,  AT
    2  OR  PRIOR TO THE TIME OF THE REFERRAL, DISCLOSES IN WRITING TO THE PARTY
    3  BEING REFERRED:
    4    (1)  THAT  THE ORIGINATOR HAS A FINANCIAL INTEREST IN THE TITLE INSUR-
    5  ANCE AGENT;
    6    (2) AN ESTIMATE OF THE COST OF THE SERVICES  OF  THE  TITLE  INSURANCE
    7  AGENT, INCLUDING, WITHOUT LIMITATION, THE TITLE INSURANCE PREMIUMS;
    8    (3)  THAT  THE  PARTY  BEING REFERRED IS NOT REQUIRED TO USE THE TITLE
    9  INSURANCE AGENT TO WHICH THE PARTY IS BEING REFERRED.
   10    (B) THE ORIGINATOR IS NOT THE SOLE SOURCE OF  BUSINESS  OF  THE  TITLE
   11  INSURANCE AGENT.
   12    (C)  THE TITLE INSURANCE AGENT HAS SIGNIFICANT AND MULTIPLE SOURCES OF
   13  BUSINESS.
   14    (D) ANY MONEY OR OTHER THING OF VALUE  PAID  BY  THE  TITLE  INSURANCE
   15  AGENT  TO THE ORIGINATOR IS BASED ON THE ORIGINATOR'S FINANCIAL INTEREST
   16  IN THE TITLE INSURANCE AGENT AND IS NOT RELATED TO  THE  AMOUNT  OF  THE
   17  INSURANCE  BUSINESS SUCH ORIGINATOR REFERS TO THE TITLE INSURANCE AGENT,
   18  PROVIDED, HOWEVER, THAT SUBSECTIONS (B) AND (C) OF  THIS  SECTION  SHALL
   19  NOT  APPLY TO AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS STATE OR TO A
   20  LAW FIRM LAWFULLY RENDERING LEGAL SERVICES IN THIS  STATE  ACTING  AS  A
   21  TITLE  INSURANCE AGENT AS AN ADJUNCT TO THE ATTORNEY'S OR THE LAW FIRM'S
   22  LAW PRACTICE WHO (1) REPRESENTS A CLIENT IN A REAL  ESTATE  TRANSACTION,
   23  (2)  PERFORMS THE ACTS ENUMERATED IN PARAGRAPHS ONE, TWO, THREE AND FIVE
   24  OF SUBSECTION (C) OF SECTION TWO THOUSAND ONE HUNDRED FIFTY-ONE OF  THIS
   25  ARTICLE,  AND  (3)  WAS A TITLE INSURANCE AGENT ON THE DATE THIS SECTION
   26  FIRST BECAME A LAW AND  FOR  AT  LEAST  THE  TWELVE  MONTHS  IMMEDIATELY
   27  PRECEDING SUCH DATE.
   28    S  2162.  FIDUCIARY CAPACITY OF LICENSEES. (A) EVERY LICENSEE SHALL BE
   29  RESPONSIBLE IN A FIDUCIARY CAPACITY FOR ALL FUNDS RECEIVED OR  COLLECTED
   30  AS A TITLE INSURANCE AGENT AND SHALL NOT, WITHOUT THE EXPRESS CONSENT OF
   31  HIS  OR  HER  OR ITS PRINCIPAL, MINGLE ANY SUCH FUNDS WITH HIS OR HER OR
   32  ITS OWN FUNDS OR WITH FUNDS HELD BY HIM OR HER OR IT IN ANY OTHER CAPAC-
   33  ITY.
   34    (B) THIS SECTION SHALL NOT REQUIRE ANY SUCH AGENT TO MAINTAIN A  SEPA-
   35  RATE  BANK  DEPOSIT FOR THE FUNDS OF EACH SUCH PRINCIPAL, IF AND AS LONG
   36  AS THE FUNDS SO HELD FOR EACH SUCH PRINCIPAL ARE REASONABLY  ASCERTAINA-
   37  BLE FROM THE BOOKS OF ACCOUNT AND RECORDS OF SUCH AGENT.
   38    S  2163.  ADVERTISING  BY  LICENSEES. (A)(1) NO LICENSEE SHALL MAKE OR
   39  ISSUE IN THIS STATE ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR, CARD OR
   40  OTHER PUBLIC ANNOUNCEMENT PURPORTING TO MAKE KNOWN THE FINANCIAL  CONDI-
   41  TION  OF  ANY TITLE INSURANCE CORPORATION, UNLESS THE SAME SHALL CONFORM
   42  TO THE REQUIREMENTS OF SECTION ONE THOUSAND THREE  HUNDRED  THIRTEEN  OF
   43  THIS CHAPTER.
   44    (2)  NO LICENSEE OR OTHER PERSON SHALL, BY ANY ADVERTISEMENT OR PUBLIC
   45  ANNOUNCEMENT IN THIS STATE, CALL ATTENTION  TO  ANY  UNAUTHORIZED  TITLE
   46  INSURANCE CORPORATION.
   47    (B) EVERY LICENSEE SHALL, IN ALL ADVERTISEMENTS, PUBLIC ANNOUNCEMENTS,
   48  SIGNS,  PAMPHLETS, CIRCULARS AND CARDS, WHICH REFER TO A TITLE INSURANCE
   49  CORPORATION, SET FORTH THEREIN THE NAME IN FULL OF THE  TITLE  INSURANCE
   50  CORPORATION REFERRED TO.
   51    S  2164.  STAY  OR  SUSPENSION  OF SUPERINTENDENT'S DETERMINATION. THE
   52  COMMENCEMENT OF A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT  OF  THE  CIVIL
   53  PRACTICE  LAW  AND  RULES, TO REVIEW THE ACTION OF THE SUPERINTENDENT IN
   54  SUSPENDING OR REVOKING OR REFUSING TO RENEW ANY LICENSE UNDER THIS ARTI-
   55  CLE, SHALL STAY SUCH ACTION OF THE SUPERINTENDENT FOR A PERIOD OF THIRTY
   56  DAYS. SUCH STAY SHALL NOT BE EXTENDED FOR A  LONGER  PERIOD  UNLESS  THE
       A. 5894                            19
    1  COURT  SHALL  DETERMINE, AFTER A PRELIMINARY HEARING OF WHICH THE SUPER-
    2  INTENDENT IS NOTIFIED FORTY-EIGHT HOURS IN ADVANCE, THAT A STAY  OF  THE
    3  SUPERINTENDENT'S ACTION PENDING THE FINAL DETERMINATION OR FURTHER ORDER
    4  OF  THE  COURT WILL NOT UNDULY INJURE THE INTERESTS OF THE PEOPLE OF THE
    5  STATE.
    6    S 2165. IMPERSONATION AT  EXAMINATIONS  PROHIBITED.  NO  PERSON  SHALL
    7  IMPERSONATE  ANY  OTHER PERSON, OR PERMIT OR AID IN ANY MANNER ANY OTHER
    8  PERSON TO IMPERSONATE HIM OR HER, IN  CONNECTION  WITH  ANY  EXAMINATION
    9  HELD IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
   10    S  2166. CONTINUING EDUCATION. (A) THIS SECTION SHALL APPLY TO PERSONS
   11  LICENSED PURSUANT TO THIS ARTICLE AND TO  INDIVIDUALS  DESIGNATED  AS  A
   12  SUB-LICENSEE  TO  FULFILL  THE  CONTINUING EDUCATION REQUIREMENTS FOR AN
   13  ENTITY LICENSED UNDER THIS ARTICLE.
   14    (B) THIS SECTION SHALL NOT APPLY TO:
   15    (1) AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS STATE;
   16    (2) ANY LICENSEES AS THE SUPERINTENDENT  MAY  EXEMPT  SUBJECT  TO  ANY
   17  CONTINUING  EDUCATION REQUIREMENTS DEEMED APPROPRIATE BY THE SUPERINTEN-
   18  DENT.
   19    (C) PERSONS LICENSED PURSUANT TO THIS ARTICLE  AND  NOT  EXEMPT  UNDER
   20  THIS  ARTICLE,  SHALL BIENNIALLY SATISFACTORILY COMPLETE SUCH COURSES OR
   21  PROGRAMS OF INSTRUCTION AS MAY BE APPROVED  BY  THE  SUPERINTENDENT,  AS
   22  FOLLOWS:
   23    (1)  ANY  PERSON HOLDING A LICENSE ISSUED PURSUANT TO THIS ARTICLE AND
   24  NOT EXEMPT UNDER SUBSECTION (B) OF THIS SECTION SHALL, DURING EACH  FULL
   25  BIENNIAL  LICENSING  PERIOD, SATISFACTORILY COMPLETE COURSES OR PROGRAMS
   26  OF INSTRUCTION OR ATTEND SEMINARS AS MAY BE APPROVED BY THE  SUPERINTEN-
   27  DENT EQUIVALENT TO FIFTEEN CREDIT HOURS OF INSTRUCTION.
   28    (2)  EXCESS  CREDIT  HOURS  ACCUMULATED  DURING ANY BIENNIAL LICENSING
   29  PERIOD SHALL NOT CARRY FORWARD TO THE NEXT BIENNIAL LICENSING PERIOD.
   30    (D)(1) THE COURSES OR PROGRAMS OF INSTRUCTION SUCCESSFULLY  COMPLETED,
   31  WHICH SHALL BE DEEMED TO MEET THE SUPERINTENDENT'S STANDARDS FOR CONTIN-
   32  UING  EDUCATION  REQUIREMENTS, SHALL BE COURSES, PROGRAMS OF INSTRUCTION
   33  OR SEMINARS, APPROVED AS TO METHOD AND CONTENT  BY  THE  SUPERINTENDENT,
   34  RELATED  TO TITLE INSURANCE, AND GIVEN BY A DEGREE CONFERRING COLLEGE OR
   35  UNIVERSITY WHOSE CURRICULUM  IS  REGISTERED  WITH  THE  STATE  EDUCATION
   36  DEPARTMENT  AT THE TIME THE PERSON TAKES THE COURSE, WHETHER SUCH COURSE
   37  BE GIVEN AS PART OF SUCH CURRICULUM  OR  SEPARATELY,  OR  BY  ANY  OTHER
   38  INSTITUTION,  AGENTS' ASSOCIATION, TRADE ASSOCIATION, BAR ASSOCIATION OR
   39  TITLE INSURANCE CORPORATION, WHICH  MAINTAINS  EQUIVALENT  STANDARDS  OF
   40  INSTRUCTION  AND  WHICH SHALL HAVE BEEN APPROVED FOR SUCH PURPOSE BY THE
   41  SUPERINTENDENT.
   42    (2) THE NUMBER OF CREDIT HOURS ASSIGNED TO  EACH  OF  THE  COURSES  OR
   43  PROGRAMS  OF  INSTRUCTION  SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION
   44  SHALL BE DETERMINED BY THE SUPERINTENDENT.
   45    (E) A PERSON WHO TEACHES ANY APPROVED COURSE  OF  INSTRUCTION  OR  WHO
   46  LECTURES  AT  ANY  APPROVED SEMINAR, AND WHO IS SUBJECT TO THIS SECTION,
   47  SHALL BE GRANTED THE SAME NUMBER OF CREDIT HOURS AS WOULD BE GRANTED  TO
   48  A  PERSON  TAKING  AND  SUCCESSFULLY  COMPLETING SUCH COURSE, SEMINAR OR
   49  PROGRAM, PROVIDED THAT SUCH CREDIT HOURS SHALL BE CREDITED ONLY ONCE PER
   50  APPROVED COURSE DURING ANY BIENNIAL LICENSING PERIOD.
   51    (F) EVERY PERSON SUBJECT TO THIS SECTION  SHALL  FURNISH,  IN  A  FORM
   52  SATISFACTORY  TO  THE  SUPERINTENDENT,  CERTIFICATION  ATTESTING  TO THE
   53  COURSE OR PROGRAMS OF INSTRUCTION TAKEN AND  SUCCESSFULLY  COMPLETED  BY
   54  SUCH PERSON PURSUANT TO SUBSECTION (D) OF THIS SECTION.
   55    (G)(1)  ANY  PERSON  FAILING  TO MEET THE REQUIREMENTS IMPOSED BY THIS
   56  SECTION SHALL NOT BE ELIGIBLE TO RENEW THE LICENSE.
       A. 5894                            20
    1    (2) ANY PERSON WHOSE LICENSE WAS NOT RENEWED SHALL NOT BE ELIGIBLE  TO
    2  BECOME  RELICENSED  DURING THE NEXT BIENNIAL LICENSING PERIOD UNTIL THAT
    3  PERSON HAS DEMONSTRATED TO THE SATISFACTION OF THE  SUPERINTENDENT  THAT
    4  CONTINUING EDUCATION REQUIREMENTS FOR THE LAST BIENNIAL LICENSING PERIOD
    5  WERE MET.
    6    (3) ANY PERSON WHOSE LICENSE WAS NOT RENEWED PURSUANT TO PARAGRAPH ONE
    7  OF  THIS  SUBSECTION,  WHO  ACCUMULATES  SUFFICIENT CREDIT HOURS FOR THE
    8  PRIOR LICENSING PERIOD TO QUALIFY FOR RELICENSING IN THE BIENNIAL PERIOD
    9  FOLLOWING SUCH NON-RENEWAL, MAY NOT APPLY THOSE SAME CREDIT HOURS TOWARD
   10  THE CONTINUING EDUCATION REQUIREMENTS FOR THE CURRENT BIENNIAL LICENSING
   11  PERIOD.
   12    (H)(1) ANY ENTITY ELIGIBLE TO PROVIDE COURSES,  PROGRAMS  OF  INSTRUC-
   13  TION,  OR  SEMINARS  IN  ACCORDANCE WITH SUBSECTION (D) OF THIS SECTION,
   14  MUST FILE FOR APPROVAL BY THE SUPERINTENDENT ON  A  BIENNIAL  BASIS,  TO
   15  CONFORM  WITH  ITS AREA OF INSTRUCTION, A PROVIDER ORGANIZATION APPLICA-
   16  TION AND A COURSE SUBMISSION APPLICATION FOR EACH  COURSE,  PROGRAM  AND
   17  SEMINAR.
   18    (2)  THE  PROVIDER ORGANIZATION APPLICATION SHALL INCLUDE THE NAMES OF
   19  ALL INSTRUCTORS TO BE USED DURING THE CONTRACT PERIOD,  AND  INSTRUCTORS
   20  MAY  BE  ADDED  DURING  THE  PERIOD  BY NOTIFYING THE SUPERINTENDENT AND
   21  PAYING THE APPROPRIATE FILING FEE.
   22    (3) THE COMPLETED APPLICATIONS SHALL BE RETURNED IN A  TIMELY  MANNER,
   23  AS  SPECIFIED BY THE SUPERINTENDENT, WITH A NON-REFUNDABLE FILING FEE OF
   24  TWO HUNDRED DOLLARS PER ORGANIZATION, FIFTY DOLLARS PER COURSE,  PROGRAM
   25  AND SEMINAR, AND FIFTY DOLLARS PER INSTRUCTOR.
   26    (4)  APPROVAL  OF  THE  APPLICATION  SHALL BE AT THE DISCRETION OF THE
   27  SUPERINTENDENT.
   28    (I) EACH LICENSEE SHALL PAY A BIENNIAL FEE OF TEN DOLLARS PER LICENSE,
   29  FOR CONTINUING EDUCATION CERTIFICATE FILING AND  RECORDING  CHARGES,  TO
   30  THE SUPERINTENDENT OR, AT THE DISCRETION OF THE SUPERINTENDENT, DIRECTLY
   31  TO AN ORGANIZATION UNDER CONTRACT TO PROVIDE CONTINUING EDUCATION ADMIN-
   32  ISTRATIVE SERVICES.
   33    S 2167. CHANGE OF ADDRESS.  A LICENSEE UNDER THIS ARTICLE SHALL INFORM
   34  THE  SUPERINTENDENT  BY  A  MEANS  ACCEPTABLE TO THE SUPERINTENDENT OF A
   35  CHANGE OF ADDRESS WITHIN THIRTY DAYS OF THE CHANGE.
   36    S 2168. ADMINISTRATION OF CERTAIN FUNCTIONS.  THE  SUPERINTENDENT  MAY
   37  DESIGNATE  THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) OR
   38  ANY AFFILIATES OR SUBSIDIARIES THAT THE NAIC OVERSEES TO PERFORM  MINIS-
   39  TERIAL FUNCTIONS, INCLUDING THE COLLECTION OF FEES, RELATED TO LICENSING
   40  UNDER THIS ARTICLE THAT THE SUPERINTENDENT MAY DEEM APPROPRIATE.
   41    S  2. Subsection (a) of section 107 of the insurance law is amended by
   42  adding a new paragraph 55 to read as follows:
   43    (55) "TITLE INSURANCE AGENT" HAS THE MEANING ASCRIBED TO IT BY SECTION
   44  TWO THOUSAND ONE HUNDRED FIFTY-ONE OF THIS CHAPTER.
   45    S 3. Subsections (a) and (b) of section 2324  of  the  insurance  law,
   46  subsection  (a)  as  amended  by  chapter  291  of the laws of 2012, are
   47  amended to read as follows:
   48    (a) No authorized insurer, no licensed insurance  agent,  NO  LICENSED
   49  TITLE  INSURANCE AGENT, no licensed insurance broker, and no employee or
   50  other representative of any such insurer, agent or  broker  shall  make,
   51  procure  or  negotiate  any  contract of insurance other than as plainly
   52  expressed in the policy or other written contract issued or to be issued
   53  as evidence thereof, or shall directly or indirectly, by giving or shar-
   54  ing a commission or in any manner whatsoever, pay or allow or  offer  to
   55  pay or allow to the insured or to any employee of the insured, either as
   56  an  inducement  to  the  making of insurance or after insurance has been
       A. 5894                            21
    1  effected, any rebate from the premium which is specified in the  policy,
    2  or  any  special favor or advantage in the dividends or other benefit to
    3  accrue thereon, or shall give or offer to give  any  valuable  consider-
    4  ation  or  inducement  of any kind, directly or indirectly, which is not
    5  specified in such policy or contract, other than any valuable  consider-
    6  ation,   including   but   not  limited  to  merchandise  or  periodical
    7  subscriptions, not exceeding twenty-five  dollars  in  value,  or  shall
    8  give,  sell  or  purchase,  or  offer  to  give, sell or purchase, as an
    9  inducement to the making of such insurance or in  connection  therewith,
   10  any  stock, bond or other securities or any dividends or profits accrued
   11  thereon, nor shall the insured, his agent  or  representative  knowingly
   12  receive  directly  or  indirectly,  any  such rebate or special favor or
   13  advantage, provided, however, a licensed  insurance  agent,  A  LICENSED
   14  TITLE  INSURANCE  AGENT  or  a  licensed insurance broker may retain the
   15  usual commission or underwriting fee on insurance placed on his  OR  HER
   16  own  property  or  risks, if the aggregate of such commissions or under-
   17  writing fees will not exceed five percent of the total  net  commissions
   18  or underwriting fees received by such licensed insurance agent, LICENSED
   19  TITLE INSURANCE AGENT or insurance broker during the calendar year.
   20    (b) Within the meaning of subsection (a) [hereof] OF THIS SECTION, the
   21  sharing  of a commission with the insured shall be deemed to include any
   22  case in which a licensed insurance agent, LICENSED TITLE INSURANCE AGENT
   23  or a licensed insurance broker which is a subsidiary corporation of,  or
   24  a corporation affiliated with, any corporation insured, received commis-
   25  sions  for  the  negotiation or procurement of any policy or contract of
   26  insurance for the insured.
   27    S 4. This act shall take effect July 1, 2016; provided, however,  that
   28  subsections  (a)  and (b) of section 2152 of the insurance law, as added
   29  by section one of this act, shall take effect January 1, 2017; provided,
   30  further, that effective  immediately  the  superintendent  of  financial
   31  services is authorized to promulgate such rules and regulations and take
   32  any  other measures as may be necessary for the timely implementation of
   33  this act.