TITLE: Relating to the provision of title insurance coverage by more than one title insurance company in a single title insurance transaction.

SUMMARY: Relating to the provision of title insurance coverage by more than one title insurance company in a single title insurance transaction.

FULL TEXT:
AN ACT relating to the provision of title insurance coverage by more than one title insurance company in a single title insurance transaction. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 2704, Insurance Code, is amended by adding Section 2704.005 to read as follows: Sec. 2704.005. COINSURANCE OF RISK. (a) A title insurance company authorized to engage in business in this state may not issue a title insurance policy for a risk insured by one or more other title insurance companies unless each other title insurance company executes a coinsurance endorsement prescribed by the commissioner. (b) The premium for the title insurance policy described by Subsection (a) shall be determined for the total risk insured and apportioned between or among the title insurance companies insuring the risk based on the amount of risk insured by each insurer. (c) The title insurance company issuing the title insurance policy is responsible for collecting the title insurance premium and distributing the premium as apportioned under Subsection (b). SECTION 2. This Act applies only to a title insurance policy that is delivered or issued for delivery on or after January 1, 2014. A policy delivered or issued for delivery before that date is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2013.