reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter G. Association Powers and Duties Relating to Covered Claims › Section 2602.304. Advance as Loan

Sec. 2602.304.  ADVANCE AS LOAN.  Money advanced by the association under this chapter is considered a special fund loan to the impaired title insurance company or agent for payment of covered claims and does not become an asset of the title insurance company or agent.  The loan is repayable to the extent money from the title insurance company or agent is available.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter G. Association Powers and Duties Relating to Covered Claims › Section 2602.305. Association in Place of Impaired Title Insurance Company or Agent

Sec. 2602.305.  ASSOCIATION IN PLACE OF IMPAIRED TITLE INSURANCE COMPANY OR AGENT.  (a)  To the extent of the association's obligation on a covered claim, the association stands in the place of the impaired title insurance company or agent and has all the rights, duties, and obligations of the company or agent as if the company or agent were not impaired.
(b)  In performing its obligations under this chapter, the association is not considered:
(1)  to be engaged in the business of insurance;
(2)  to have assumed or succeeded to a liability of the impaired title insurance company or agent;  or
(3)  to otherwise stand in the place of the impaired title insurance company or agent, including as to whether the association is subject to personal jurisdiction of the courts of another state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter G. Association Powers and Duties Relating to Covered Claims › Section 2602.306. Assignment of Claimant's Rights

Sec. 2602.306.  ASSIGNMENT OF CLAIMANT'S RIGHTS.  (a)  Any cause of action or other right of the holder of a covered claim arising from the occurrence on which the claim is based is assigned to the association on the holder's acceptance of:
(1)  the association's payment of the claim;  or
(2)  a benefit of a contract by the association providing for reinsurance or assumption of liabilities or for substitution.
(b)  Rights are assigned to the association under Subsection (a) to the extent of the amount accepted or the value of the benefit provided.
(c)  The association may assign the rights acquired under this section to the title insurance company executing the reinsurance, assumption, or substitution agreement.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter G. Association Powers and Duties Relating to Covered Claims › Section 2602.307. Settlement by Association Binding; Priority of Claim and Expenses

Sec. 2602.307.  SETTLEMENT BY ASSOCIATION BINDING;  PRIORITY OF CLAIM AND EXPENSES.  (a)  The settlement of a covered claim by the association binds the receiver or statutory successor of an impaired title insurance company.
(b)  The court shall give the covered claim the same priority against assets of the impaired title insurance company that the claim would have had in the absence of this chapter.
(c)  The association's expenses in handling claims have the same priority as the receiver's expenses.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter G. Association Powers and Duties Relating to Covered Claims › Section 2602.308. Report to Receiver

Sec. 2602.308.  REPORT TO RECEIVER.  The association shall periodically file with the receiver of an impaired title insurance company a statement of covered claims paid by the association and an estimate of claims anticipated against the association.  The statement preserves the rights of the association against the assets of the company.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims › Section 2602.351. Determination of Conservator Concerning Reinsurance, Assumption, or Substitution

Sec. 2602.351.  DETERMINATION OF CONSERVATOR CONCERNING REINSURANCE, ASSUMPTION, OR SUBSTITUTION.  A conservator appointed to handle the affairs of an impaired title insurance company or agent shall determine whether covered claims should or can be provided for in whole or in part by reinsurance, assumption, or substitution.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims › Section 2602.352. Notice of Determination Concerning Actual Payment

Sec. 2602.352.  NOTICE OF DETERMINATION CONCERNING ACTUAL PAYMENT.  (a)  On determination by the conservator that covered claims should be actually paid, the conservator shall give notice of the determination to holders of covered claims.
(b)  The conservator shall mail the notice to each holder of a covered claim at the most recent address shown in the impaired title insurance company's or agent's records, except that if those records do not show the claimant's address the conservator may give notice by publication in a newspaper of general circulation.
(c)  The notice must state a date, not earlier than the 91st day after the date of the mailing or publication of the notice, before which the claimant must file a claim with the conservator.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims › Section 2602.353. Filing of Covered Claim

Sec. 2602.353.  FILING OF COVERED CLAIM.  The conservator may require in whole or in part that claimants file:
(1)  sworn claim forms;  and
(2)  additional information or evidence reasonably necessary for the conservator to determine the legality of or amount due under a covered claim.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims › Section 2602.354. Claim by Person With Cause of Action Against Insured

Sec. 2602.354.  CLAIM BY PERSON WITH CAUSE OF ACTION AGAINST INSURED.  (a)  On determination by the conservator that covered claims should be actually paid or on order of the court to the receiver to give notice for the filing of claims, a person having a cause of action that constitutes a covered claim against an insured of the impaired title insurance company under a title insurance policy issued or assumed by the company may file the claim with the receiver or conservator, regardless of whether the claim is unliquidated or undetermined.
(b)  A claim under this section may be approved as a covered claim if:
(1)  it may be reasonably inferred from the proof presented that the claimant would be able to obtain a judgment on the cause of action against the insured;
(2)  the claimant provides suitable proof that no valid claim exists against the impaired title insurance company arising from the cause of action other than claims already made;  and
(3)  the total liability of the impaired title insurance company to all claimants under the same title insurance policy does not exceed the amount of the company's total liability if the company were not in liquidation, rehabilitation, or conservation.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims › Section 2602.355. Report to Association

Sec. 2602.355.  REPORT TO ASSOCIATION.  (a)  A receiver of an impaired title insurance company or agent shall periodically submit a list of claims to the association or a similar organization in another state.
(b)  Notice of a claim to the receiver is considered notice to the association.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter I. Operation of Impaired Title Insurance Company or Agent › Section 2602.401. Issuance or Renewal of Policies

Sec. 2602.401.  ISSUANCE OR RENEWAL OF POLICIES.  (a)  If an assessment has been made under this chapter for an impaired title insurance company or association funds have been provided for the company, the company, on release from the supervision, rehabilitation, conservatorship, receivership,  or other proceeding in which the company was found by a court of competent jurisdiction to be insolvent or otherwise unable to pay obligations as they come due, may not issue a new or renewal insurance policy until the company:
(1)  has repaid pro rata in full to each holder of a participation receipt the assessment amount paid by the receipt holder or its assignee; and
(2)  has repaid in full the amount of guaranty fees paid by the association.
(b)  If an assessment has been made under this chapter for an impaired agent or guaranty fees have been provided for the impaired agent, the agent, on release from the supervision, conservatorship, rehabilitation, receivership, or other proceeding in which the agent was found by a court of competent jurisdiction to be insolvent or otherwise unable to pay obligations as they come due, subject to dischargeability, may not act as an agent until the agent has repaid in full the amount of guaranty fees paid by the association.
(c)  Notwithstanding Subsections (a) and (b), on application of the association and after hearing, the commissioner may permit the impaired title insurance company or agent to issue new policies as provided by a plan of operation for repayment.  In approving the plan, the commissioner may restrict the issuance of new or renewal policies as the commissioner considers necessary to implement the plan.
(d)  Not later than the 11th day before the date of a hearing under Subsection (c), the commissioner shall give notice of the hearing to the association.  The commissioner shall give 10 days' notice of the hearing to title insurance companies to whom participation receipts were issued for an assessment made for the benefit of the released title insurance company.  The association and title insurance companies are entitled to appear at and participate in the hearing.
(e)  Money recovered against an impaired title insurance company under this section shall be repaid to the title insurance companies that paid assessments in relation to the impaired title insurance company on return of the participation receipt.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 9, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter I. Operation of Impaired Title Insurance Company or Agent › Section 2602.402. Distributions to Shareholders and Affiliates

Sec. 2602.402.  DISTRIBUTIONS TO SHAREHOLDERS AND AFFILIATES.  (a)  An impaired or insolvent title insurance company may not make a distribution to shareholders until the association has recovered the total amount of valid claims for money spent in exercising the association's powers and performing the association's duties under this chapter with respect to that company, plus interest on that amount.
(b)  Except as otherwise provided by this section, the receiver appointed under an order of receivership of a title insurance company domiciled in this state may recover on behalf of the company from an affiliate that controlled the company the amount of a distribution, other than a stock dividend the company paid on its capital stock, made during the five years preceding the date of the petition for liquidation or rehabilitation.
(c)  A person who was an affiliate that controlled the title insurance company when the distribution described by Subsection (b) was paid is liable for the amount of the distribution received.  A person who was an affiliate that controlled the title insurance company when the distribution was declared is liable for the amount of the distribution the affiliate would have received if the distribution had been paid immediately.  Two or more persons liable for the same distribution are jointly and severally liable.  If a person liable under this subsection is insolvent, all of the affiliates that controlled the insolvent person when the distribution was paid are jointly and severally liable for any resulting deficiency in the amount recovered from the insolvent person.
(d)  The maximum amount recoverable under Subsections (b) and (c) is the amount needed in excess of all other available assets of the insolvent title insurance company to pay the company's contractual obligations.
(e)  The receiver may not recover a distribution under Subsection (b) if the title insurance company shows that:
(1)  the distribution was lawful and reasonable on the date of payment;  and
(2)  the company did not know and could not reasonably have known that the distribution might adversely affect the ability of the company to fulfill its contractual obligations.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.079, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter I. Operation of Impaired Title Insurance Company or Agent › Section 2602.403. Assets Attributable to Covered Policies

Sec. 2602.403.  ASSETS ATTRIBUTABLE TO COVERED POLICIES.  (a)  For the purposes of this section, assets attributable to covered policies are the proportion of the assets that the reserves that should have been established for the covered policies bear to the reserves that should have been established for all insurance policies written by the impaired or insolvent title insurance company.
(b)  To perform its obligations under this chapter, the association is considered a creditor of the impaired or insolvent title insurance company to the extent of assets attributable to covered policies, less any amount that the association recovers as a subrogee under this chapter.
(c)  Assets of the impaired or insolvent title insurance company attributable to covered policies shall be used to continue all covered policies and pay all contractual obligations of the impaired or insolvent company as required by this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter J. Additional Duties of Association › Section 2602.451. Applicability

Sec. 2602.451.  APPLICABILITY.  This subchapter applies, at the commissioner's discretion and regardless of whether there are covered claims against an agent, to any agent that is designated by the commissioner as an impaired agent.
Added by Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 10, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter J. Additional Duties of Association › Section 2602.452. Actions for Certain Agents

Sec. 2602.452.  ACTIONS FOR CERTAIN AGENTS.  (a)  The commissioner may direct the association, at the association's expense and on behalf of an impaired agent, to:
(1)  close real estate transactions;
(2)  disburse escrow funds;
(3)  record documents; and
(4)  issue final title insurance policies.
(b)  The association may employ or retain a person or persons to perform any action required under Subsection (a), in accordance with Section 2602.103(a).
Added by Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 10, eff. September 1, 2009.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 30, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter J. Additional Duties of Association › Section 2602.453. Authority of Association; Cooperation of Officers, Owners, and Employees

Sec. 2602.453.  AUTHORITY OF ASSOCIATION; COOPERATION OF OFFICERS, OWNERS, AND EMPLOYEES.  (a)  On the direction of the commissioner under Section 2602.452, the association may implement any direction made by the commissioner and may access all books, records, accounts, networks, and electronic document storage and management systems as necessary to implement the commissioner's direction.
(b)  Any present or former officer, manager, director, trustee, owner, employee, or agent of the agent, or any other person with authority over or in charge of any segment of the agent's affairs, shall cooperate with the association.  For purposes of this subsection:
(1)  "Person" includes a person who exercised or exercises control directly or indirectly over activities of the agent through a holding company or other affiliate of the agent.
(2)  "Cooperate" means:
(A)  replying promptly in writing to any request for information from the association within the period established in the request; and
(B)  making available to the association any books, accounts, documents, or other records or information of, or relating to, the agent within the period set in the request.
(c)  A person who fails to cooperate as required under Subsection (b) is subject to sanctions under Chapter 82, in addition to all other sanctions available under law.
Added by Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 10, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.001. License and Bond or Deposit Required

Sec. 2651.001.  LICENSE AND BOND OR DEPOSIT REQUIRED.  (a)  An individual, firm, association, or corporation may not act in this state as a title insurance agent for a title insurance company unless the individual or entity:
(1)  holds a license as an agent issued by the department;  and
(2)  maintains a surety bond or deposit required under Subchapter C.
(b)  A title insurance company may not allow or permit an individual, firm, association, or corporation to act as its agent in this state unless the individual or entity complies with this section.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.002. License Application

Sec. 2651.002.  LICENSE APPLICATION.  (a)  Before an initial license is issued to an individual, firm, association, or corporation to act as an agent in this state for a title insurance company, the company must file an application for an agent's license with the department on forms provided by the department.
(b)  The application must be:
(1)  accompanied by a nonrefundable license fee;  and
(2)  signed and sworn to by the title insurance company and by the proposed agent.
(c)  The completed application must state that:
(1)  the proposed agent is:
(A)  an individual who is a bona fide resident of this state;
(B)  an association or firm composed only of Texas residents; or
(C)  a Texas corporation or a foreign corporation authorized to engage in business in this state;
(2)  the proposed agent  has unencumbered assets in excess of liabilities, exclusive of the value of abstract plants, as required by Section 2651.012;
(3)  the proposed agent, including a corporation's managerial personnel, if applicable, has reasonable experience or instruction in the field of title insurance;
(4)  the title insurance company:
(A)  knows that the proposed agent has a good business reputation and is worthy of the public trust; and
(B)  is unaware of any fact or condition that disqualifies the proposed agent from receiving a license; and
(5)  the proposed agent qualifies as a title insurance agent under this chapter.
(d)  Except as provided by Section 2651.0021(e), an agent applying for an initial license under this subchapter must provide evidence that the agent and its management personnel have successfully completed a professional training program that complies with Section 2651.0021. The program must have been completed within one year preceding the date of application.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 11, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.0021. Professional Training Program

Sec. 2651.0021.  PROFESSIONAL TRAINING PROGRAM.  (a)  The commissioner shall adopt by rule a professional training program for a title insurance agent and the management personnel of the title insurance agent.
(b)  The professional training program must be designed to provide information regarding:
(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 of the license holder'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.
(c)  Professional training program hours may be used to satisfy the continuing education requirements established under Section 2651.204.
(d)  A professional training program course must be offered by:
(1)  a statewide title insurance association, statewide title agents' association or professional association, or local chapter of a statewide title insurance or title agents' association or professional association;
(2)  an accredited college or university;
(3)  a career school or college as defined by Section 132.001, Education Code;
(4)  the State Bar of Texas;
(5)  an educational publisher;
(6)  a title insurance company authorized to engage in business in this state;
(7)  a company that owns one or more title insurance companies authorized to engage in business in this state;
(8)  a public school system in this state; or
(9)  an individual accredited as an instructor by an entity described by Subdivisions (1)-(8).
(e)  An individual is exempt from the professional training requirement of this section if the individual has held in this state for at least five years a position as management personnel with a title insurance agent, or a comparable position, as determined under rules adopted by the commissioner.
Added by Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 12, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.003. License and Renewal Fees

Sec. 2651.003.  LICENSE AND RENEWAL FEES.  (a)  The department shall prescribe the license fee in an amount not to exceed $50.
(b)  License fees, and renewal fees collected under this subchapter, shall be deposited to the credit of the Texas Department of Insurance operating account to be used by the department to enforce this chapter and any other law of this state that regulates title insurance agents.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.004. License Issuance

Sec. 2651.004.  LICENSE ISSUANCE.  The department shall issue a license if the department determines, based on the application and the department's investigation, that the requirements of Section 2651.002 are satisfied.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.005. Duplicate License

Sec. 2651.005.  DUPLICATE LICENSE.  (a)  The department shall collect in advance a fee from a title insurance agent who requests a duplicate license.
(b)  The department shall prescribe the fee in an amount not to exceed $20.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.006. License Term

Sec. 2651.006.  LICENSE TERM.  Unless a system of staggered license renewal is adopted under Section 4003.002, a license issued under this subchapter expires on June 1 after the second anniversary of the date of issuance.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.007. License Renewal

Sec. 2651.007.  LICENSE RENEWAL.  (a)  A title insurance agent may renew a license by:
(1)  filing a completed license renewal application form with the department;  and
(2)  paying the nonrefundable license renewal fee to the department.
(b)  The department shall prescribe the license renewal application form.
(c)  The department shall prescribe the license renewal fee in an amount not to exceed $50.
(d)  Not later than the 20th business day after the date the department receives a renewal application, the department shall notify the applicant in writing of any deficiencies in the application that render the renewal application incomplete.
(e)  Not later than the fifth business day after the date the renewal application is complete, the department shall notify the applicant in writing of the date that the renewal application is complete.
(f)  A renewal application is automatically approved on the 30th business day after the date the renewal application is complete, unless on or before that date the department notifies the applicant in writing of the factual grounds on which the department proposes to deny the license under Section 2651.301.
(g)  The department may provide a notice required under this section by e-mail.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1011 (H.B. 2408), Sec. 3, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.008. Records of Agents

Sec. 2651.008.  RECORDS OF AGENTS.  The department shall maintain a record of the name and address of each title insurance agent licensed by the department in a manner that ensures that the agents appointed by any company authorized to engage in the business of title insurance in this state may be conveniently ascertained and inspected by any person on request.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.010. Suspension of License

Sec. 2651.010.  SUSPENSION OF LICENSE.  The department shall suspend the license of a title insurance agent during any period in which the agent does not have a valid appointment.  The department shall end the suspension when the department receives an acceptable notice of a valid appointment.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.011. Privileged Communications; Financial Information

Sec. 2651.011.  PRIVILEGED COMMUNICATIONS; FINANCIAL INFORMATION.  (a)  Any information, including a document, record, or statement, and including information provided to or received from the commissioner under Subsection (b) or (c), or any other information required or permitted to be made or disclosed to or by the department under this subchapter, other than Section 2651.001, is not public information subject to Chapter 552, Government Code, except to the extent described by Subsection (b), and is a privileged communication and may not be disclosed to the public except as evidence in an administrative hearing or proceeding.  This subsection does not apply to a document, record, or statement required to be made or disclosed to the department under Chapter 36.
(b)  A title insurance company may provide information to the commissioner about a financial matter that would reasonably call into question the solvency of a title agent that the title insurance company appointed.  Each title insurance company shall provide annually to the department a list of officers authorized to provide to the department the information under this subsection. Information provided under this subsection is not subject to Chapter 552, Government Code, except that the commissioner may release information that the commissioner received under this subsection to a title insurance company that has appointed, or that is considering appointing, the title agent.  The commissioner may also release information that the commissioner received under this subsection to a title agent under Section 2651.206, Insurance Code, if the information is evidence on which an audit report or examination report relies.  A title insurance company that receives information under this subsection may not release the information except under a subpoena issued by a court of competent jurisdiction.
(c)  Each title insurance agent shall provide the department, on a quarterly basis, with a copy of the agent's quarterly withholding tax report furnished by the agent to the United States Internal Revenue Service. The title insurance agent must also provide to the department proof of the payment of the tax.  An agent that does not have employees shall certify to the department on a quarterly basis that there has not been a material change in the agent's financial condition.
(d)  The commissioner by rule may prescribe the types of information under Subsections (b) and (c) that are privileged under Subsection (a).
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 13, eff. September 1, 2009.
For contingent effect of this section, see Subsection (j).
For expiration of Subsections (g) and (i), see Subsection (i).
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter A. Title Insurance Agent's License › Section 2651.013. Division of Premium Held in Trust; Rules

Sec. 2651.013.  DIVISION OF PREMIUM HELD IN TRUST; RULES.  (a)  The funds held by a title insurance agent that are owed to a title insurance company, another title insurance agent, or a direct operation arising from a division of premium, whether as determined under rules adopted by the commissioner or by agreement among the parties, are considered to be held in trust for the title insurance company, other title insurance agent, or direct operation.
(b)  This section does not require, and the commissioner may not require by rule, that funds described by Subsection (a) be held in a separate account subject to an external audit.  This section does not affect the department's or association's authority to examine or audit a title agent or direct operation.
Added by Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 14, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter B. Direct Operation License › Section 2651.051. License Required

Sec. 2651.051.  LICENSE REQUIRED.  (a)  A title insurance company may not own or lease and operate an abstract plant or participate in a bona fide joint abstract plant operation in a county in this state unless the company holds a license as a direct operation issued by the department for that county.
(b)  A title insurance company may not write, sign, or deliver title insurance in a county in which the company operates an abstract plant until the department has issued a direct operation license to the company.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter B. Direct Operation License › Section 2651.052. License Application

Sec. 2651.052.  LICENSE APPLICATION.  (a)  Before a direct operation license is issued to a title insurance company, the company must file an application for a direct operation license on forms provided by the department.
(b)  The application must be:
(1)  accompanied by a nonrefundable license fee;  and
(2)  signed and sworn to by the title insurance company.
(c)  The completed application must state that:
(1)  the title insurance company is a Texas corporation or a foreign corporation holding a certificate of authority to insure titles to real property in this state and meets the requirements of this title;  and
(2)  the abstract plant to be licensed:
(A)  complies with department requirements relating to abstract plants;  and
(B)  has been approved by the department.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter B. Direct Operation License › Section 2651.053. License and Renewal Fees

Sec. 2651.053.  LICENSE AND RENEWAL FEES.  (a)  The department shall prescribe the license fee in an amount not to exceed $50.
(b)  License fees, and renewal fees collected under this subchapter, shall be deposited to the credit of the Texas Department of Insurance operating account to be used by the department to enforce this chapter and the laws of this state that regulate title insurance agents and title insurance companies.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter B. Direct Operation License › Section 2651.054. License Term

Sec. 2651.054.  LICENSE TERM.  Unless a system of staggered license renewal is adopted, a license issued under this subchapter expires on the second June 1 following the date of issuance.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter B. Direct Operation License › Section 2651.055. License Renewal

Sec. 2651.055.  LICENSE RENEWAL.  (a)  On or before the expiration date of a license issued under this subchapter, a title insurance company may renew the license by:
(1)  certifying to the department each county and address at which the company operates the abstract plant for each license to be renewed;
(2)  filing a completed renewal application;  and
(3)  paying a nonrefundable license renewal fee for each license.
(b)  The department shall provide the forms used under this section.
(c)  The department shall prescribe the license renewal fee in an amount not to exceed $50.
(d)  If a license has been expired for 90 days or less, the license holder may renew the license by paying to the department the required nonrefundable renewal fee and a nonrefundable fee equal to one-half of the original license fee.
(e)  If a license has been expired for more than 90 days, the license may not be renewed.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter B. Direct Operation License › Section 2651.056. Ceasing Operation of Abstract Plant; Request for License Cancellation

Sec. 2651.056.  CEASING OPERATION OF ABSTRACT PLANT;  REQUEST FOR LICENSE CANCELLATION.  If a title insurance company ceases to operate a licensed abstract plant, the company shall immediately notify the department in writing and request cancellation of the license.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter B. Direct Operation License › Section 2651.057. Automatic Termination of Licenses

Sec. 2651.057.  AUTOMATIC TERMINATION OF LICENSES.  If a title insurance company surrenders the company's certificate of authority or if the certificate of authority is revoked by the department, all licenses of the company's abstract plants automatically terminate.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter B. Direct Operation License › Section 2651.058. Records of Direct Operations

Sec. 2651.058.  RECORDS OF DIRECT OPERATIONS.  The department shall maintain a record of the county and address of each location at which a title insurance company operates an abstract plant in a manner that ensures that the abstract plants may be conveniently ascertained and inspected by any person on request.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter B. Direct Operation License › Section 2651.059. Use of Agents Not Prohibited

Sec. 2651.059.  USE OF AGENTS NOT PROHIBITED.  This subchapter does not prohibit a title insurance company from issuing title insurance through a licensed title insurance agent.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter C. Bond and Deposit Requirements › Section 2651.101. Bond Required

Sec. 2651.101.  BOND REQUIRED.  (a)  Each licensed title insurance agent and direct operation shall make, file, and pay for a surety bond payable to the department and issued by a corporate surety company authorized to write surety bonds in this state.  The bond shall obligate the principal and surety to pay for any pecuniary loss sustained by:
(1)  any participant in an insured real property transaction through an act of fraud, dishonesty, theft, embezzlement, or wilful misapplication by a title insurance agent or direct operation;  or
(2)  the department as a result of any administrative expense incurred in a receivership of a title insurance agent or direct operation.
(b)  The amount of the bond must be the greater of:
(1)  $10,000;  or
(2)  an amount equal to 10 percent of the gross premium written by the title insurance agent or direct operation in accordance with the latest statistical report to the department but not to exceed $100,000.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter C. Bond and Deposit Requirements › Section 2651.102. Alternative to Bond

Sec. 2651.102.  ALTERNATIVE TO BOND.  (a)  Instead of the bond required by Section 2651.101, a title insurance agent or direct operation may deposit with the department:
(1)  cash;
(2)  irrevocable letters of credit issued by a financial institution in this state that is insured by an agency of the United States;  or
(3)  securities approved by the department.
(b)  The cash, letters of credit, or securities deposited under this section are subject to the conditions required for a bond under Section 2651.101.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter C. Bond and Deposit Requirements › Section 2651.103. Examination of Loss Covered by Bond or Deposit

Sec. 2651.103.  EXAMINATION OF LOSS COVERED BY BOND OR DEPOSIT.  (a)  At any time it appears that a loss covered by a bond or deposit has occurred, the department may require the title insurance agent or direct operation to appear in Travis County, with records the department determines to be proper, for an examination.
(b)  The department shall specify a date for the examination that is not earlier than the 10th day or later than the 15th day after the date of service of notice of the requirement to appear.
(c)  If after the examination the department determines that a loss covered by the bond or deposit has occurred, the department shall immediately notify the surety on the bond, if applicable, and prepare a written statement of the facts of the loss and deliver the statement to the attorney general.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter C. Bond and Deposit Requirements › Section 2651.104. Investigation by Attorney General

Sec. 2651.104.  INVESTIGATION BY ATTORNEY GENERAL.  (a)  On receipt of a written statement under Section 2651.103, the attorney general shall investigate the charges and, on determining that a loss covered by the bond or deposit has occurred, shall enforce the liability by collecting against the deposited cash or securities or by filing suit on the bond.
(b)  A suit brought under this section shall be filed in the name of the department in Travis County for the benefit of all parties who have suffered any loss covered by the bond or deposit.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter D. Annual Audit › Section 2651.151. Annual Audit of Trust Fund Accounts: Title Insurance Agents and Direct Operations

Sec. 2651.151.  ANNUAL AUDIT OF TRUST FUND ACCOUNTS:  TITLE INSURANCE AGENTS AND DIRECT OPERATIONS.  (a)  Each title insurance agent and direct operation shall have an annual audit made of trust fund accounts.  The agent or direct operation shall pay for the audit.
(b)  Not later than the 90th day after the date of the end of the agent's or direct operation's fiscal year, the agent or direct operation shall file with the department one copy of the audit report with a transmittal letter.  The agent shall also send a copy of the audit report and transmittal letter to each title insurance company that the agent represents.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 429 (H.B. 1901), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter D. Annual Audit › Section 2651.152. Annual Audit of Trust Fund Accounts: Title Insurance Companies

Sec. 2651.152.  ANNUAL AUDIT OF TRUST FUND ACCOUNTS:  TITLE INSURANCE COMPANIES.  (a)  Each title insurance company shall have an annual audit made of trust fund accounts for each county in which it operates in its own name.  The company shall pay for the audit.
(b)  Not later than the 90th day after the date of the end of the title insurance company's fiscal year, the company shall file with the department one copy of the audit report.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 429 (H.B. 1901), Sec. 2, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter D. Annual Audit › Section 2651.153. Rules

Sec. 2651.153.  RULES.  The commissioner by rule shall adopt:
(1)  the standards for an audit;  and
(2)  the form of the required audit report.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter D. Annual Audit › Section 2651.154. Performance of Audit by Public Accountant

Sec. 2651.154.  PERFORMANCE OF AUDIT BY PUBLIC ACCOUNTANT.  An audit required under this subchapter must be performed by an independent certified public accountant or licensed public accountant, or a firm composed of either.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle D - Title Insurance Professionals › Chapter 2651 - Title Insurance Agents and Direct Operations › Subchapter D. Annual Audit › Section 2651.155. Confidentiality of Audit

Sec. 2651.155.  CONFIDENTIALITY OF AUDIT.  The commissioner may classify an audit report that is filed with the department by a title insurance company under this subchapter as confidential and privileged.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.