Nebraska Administrative Code › Topic - INSURANCE, DEPARTMENT OF › Title 210 - NEBRASKA DEPARTMENT OF INSURANCE › Chapter 34 - TITLE INSURANCE › Section 210-34-006 - Title Insurer On-Site Review and Report

Current through June 17, 2024
Each title insurer authorized to do business in Nebraska
				  shall adopt and utilize the following standards and procedures for the on-site
				  review of title insurance agents as required by Neb. Rev. Stat. §
									44-1993(3).
				  Such standards shall be deemed minimum standards and will not preclude title
				  insurers from applying more stringent or comprehensive procedures. On-site
				  review documentation, work papers, summaries and reports shall be maintained by
				  each title insurer for the period of at least four (4) years and shall be made
				  available to the Director of Insurance upon request pursuant to the Insurers
				  Examination Act, Neb. Rev. Stat. §
									44-5901
				  et seq. A report shall be prepared by the title insurer at the completion of
				  the on-site review setting forth the title insurer's findings on each item
				  listed below as well as any additional items the title insurer includes in its
				  on-site review. In the case of a title insurance agency on-site review, the
				  title insurer shall include in the report a list of title insurance agents
				  employed by said title insurance agency on the date of the on-site review. The
				  report shall be maintained by the title insurer and provided to the Director of
				  Insurance upon request. If the title insurer's on-site review indicates the
				  title insurance agent is deficient in any of the areas listed below, the title
				  insurer shall notify the Department within five (5) business days if the title
				  insurance agent has not remedied or can not remedy the deficiency within that
				  time. The title insurer shall file the on-site review report with the Director
				  of Insurance and explain the areas of deficiency and the agent's progress made,
				  if any, during the five-business day grace period.
006.01 Agency Contract
Each on-site review shall include a review of the title
				  insurer and title insurance agency/title insurance agent contracts to ensure
				  (a) the contract sets forth the responsibilities of each party and, when both
				  parties share the responsibility for a particular function, specifies the
				  division of responsibilities and (b) the contract is up-to-date and properly
				  executed.
006.02 Licensure
				Review
Each on-site review shall include a review of compliance with
				  Nebraska licensing requirements related to the title insurance agent, and
				  abstractors, if applicable.
006.03 Financial Responsibility
The title insurer shall obtain from the title insurance
				  agent, or from the title insurance agency if the title insurance agent is
				  employed by a title insurance agency, a statement of financial condition of the
				  title insurance agent or title insurance agency as required pursuant to Neb.
				  Rev. Stat. §
										44-1993(2)
				   and §
										44-19,114(14)
				   which includes an income statement and
				  balance sheet showing the condition of the title insurance agent/agency affairs
				  as of December 31 of the preceding year. This statement of financial condition
				  shall be certified by the title insurance agent or the title insurance agency's
				  designated agent as being a true and correct representation of the financial
				  condition. The title insurer shall document its receipt of the title insurance
				  agent's or title insurance agency's statement of financial condition in the
				  title insurer's on-site review report.
006.04 Management Evaluation
Each on-site review shall include a review of management
				  practices related to conflicts of interest, affiliated business arrangements,
				  and regulatory compliance.
006.05 Title Plant Maintenance
The title insurer shall review the title insurance agent's
				  procedures to update and maintain title plant records, if
				  applicable.
006.06
				Underwriting Practices
The title insurer shall establish underwriting standards to
				  minimize claims or potential losses to insurers, lenders, and consumers. The
				  title insurer shall conduct a random file review using an audit sample to
				  ascertain the thoroughness and accuracy of the title insurance agent's search
				  procedures.
006.07 Office
				Maintenance
006.07(A) Each on-site review
				shall include a review of the following items:
006.07(A)(1) Order log and policy
				register;
006.07(A)(2)
				Reconciliation of orders with commitments, title searches, title policies, and
				collection of premium;
006.07(A)(3)
				Reconciliation of policy numbers provided to the title insurance agent,
				existing inventory and issued policies;
006.07(A)(4) Review of the title insurance
				agent's procedure for tracking issued commitments;
006.07(A)(5) Review of the title insurance
				agent's practices to cancel commitments on transactions that do not
				close;
006.07(A)(6) Review of the
				title insurance agent's procedures for follow-up after closing to track status
				of outstanding conditions required for timely issuance of policies;
006.07(A)(7) Review of the title insurance
				agent's procedure for voiding policies;
006.07(A)(8) Review of the title insurance
				agent's tracking of open escrow, security, settlement or closing
				files;
006.07(A)(9) Review of title
				insurance agent's issued policy reports to the title insurer.