Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 395 - RULES GOVERNING SETTLEMENT AGENTS › Section 14VAC5-395-20 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter shall
				  have the following meanings unless the context clearly indicates
				  otherwise:
"Agent" or "insurance agent" means an individual or business
				  entity that sells, solicits, or negotiates contracts of title insurance in the
				  Commonwealth.
"Bureau" means the State Corporation Commission Bureau of
				  Insurance.
"Business entity" means a partnership, limited partnership,
				  limited liability company, corporation, or other legal entity other than a sole
				  proprietorship, professional corporation, or professional limited liability
				  company.
"Chapter 10" means Chapter 10 (§
									55.1-1000 et seq.) of
				  Title 55.1 of the Code of Virginia.
"Designated licensed producer" means an individual who (i)
				  possesses a valid license to sell, solicit, or negotiate contracts of title
				  insurance in the Commonwealth; (ii) is appointed; (iii) is an officer,
				  director, or employee of the business entity; and (iv) is responsible for the
				  business entity's compliance with the insurance laws, rules, and regulations of
				  this Commonwealth.
"Employee" means an individual (i) whose manner and means of
				  performance of work are subject to the right of control of, or are controlled
				  by, a person and (ii) whose compensation for federal income tax purposes is
				  reported, or required to be reported, on a W-2 form issued by the controlling
				  person.
"Escrow, closing, or settlement services" means the
				  administrative and clerical services required to carry out the terms of
				  contracts affecting real estate. These services include (i) placing orders for
				  title insurance; (ii) receiving and issuing receipts for money received from
				  the parties; (iii) ordering loan checks and payoffs; (iv) ordering surveys and
				  inspections; (v) preparing settlement statements or Closing Disclosure forms;
				  (vi) determining that all closing documents conform to the parties' contract
				  requirements; (vii) setting the closing appointment; (viii) following up with
				  the parties to ensure that the transaction progresses to closing; (ix)
				  ascertaining that the lenders' instructions have been satisfied; (x) conducting
				  a closing conference at which the documents are executed; (xi) receiving and
				  disbursing funds; (xii) completing form documents and instruments selected by
				  and in accordance with instructions of the parties to the transaction; (xiii)
				  handling or arranging for the recording of documents; (xiv) sending recorded
				  documents to the lender; (xv) sending the recorded deed and the title policy to
				  the buyer; and (xvi) reporting federal income tax information for the real
				  estate sale to the Internal Revenue Service.
"Lay real estate settlement agent" means a person who (i) is
				  not licensed as an attorney under Chapter 39 (§
									54.1-3900
				  et seq.) of Title 54.1 of the Code of Virginia, (ii) is not a party to the real
				  estate transaction, (iii) provides escrow, closing or settlement services in
				  connection with a transaction related to any real estate in this Commonwealth,
				  and (iv) is listed as the settlement agent on the settlement statement or
				  Closing Disclosure for the transaction.
"Settlement agent" means a person, other than a party to the
				  real estate transaction, who provides escrow, closing, or settlement services
				  in connection with a transaction related to real estate in the Commonwealth and
				  who is listed as the settlement agent on the settlement statement or Closing
				  Disclosure for the transaction. Any person, other than a party to the
				  transaction, who conducts the settlement conference and receives or handles
				  money shall be deemed a "settlement agent" subject to the applicable
				  requirements of Chapter 10 and this chapter.
"Title insurance agency" or "title insurance agent" means any
				  individual or business entity licensed in the Commonwealth, pursuant to Chapter
				  18 (§
									38.2-1800 et seq.) of
				  Title 38.2 of the Code of Virginia, as a title insurance agent and appointed by
				  a title insurance company licensed in the Commonwealth who shall perform all of
				  the following services (for which liability arises) relevant to the issuance of
				  title insurance policies, subject to the underwriting directives and guidelines
				  of the agent's title insurance company. These services shall include (i) the
				  evaluation of the title search to determine the insurability of the title, (ii)
				  a determination of whether or not underwriting objections have been cleared,
				  (iii) the actual issuance of a title commitment or binder and endorsements, and
				  (iv) the actual issuance of the policy and endorsements on behalf of the title
				  insurance company. A title insurance agent holding funds in escrow shall
				  promptly deposit the funds in a trust account in a financial institution
				  authorized to do business in this Commonwealth. This trust account shall be
				  separate from all other accounts held by the agent.
"Title insurance company" means any company licensed to
				  transact, or transacting, title insurance in this
				  Commonwealth.
Statutory Authority: §§
											12.1-13
					 and
					 55.1-1012
					 of the Code of Virginia.