CHAPTER 38
HB 144 – FINAL VERSION
2009 SESSION
01/05
HOUSE BILL 144
AN ACT relative to title insurance.
This bill clarifies the licensure provisions of the title insurance code.
This bill is a request of the insurance department.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0726
01/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT relative to title insurance.
Be it Enacted by the Senate and House of Representatives in General Court convened:
38:1 Title Insurance; Prohibitions. Amend RSA 416-A:8 to read as follows:
416-A:8 Prohibitions.
I. A title insurance company shall not:
[I.](a) Engage in the business of guaranteeing the payment of the principal or the interest of bonds, notes, or other obligations[;].
[II.](b) Transact, underwrite, or issue any kind of insurance other than title insurance.
II. A title insurance company or a title insurance agent shall not:
[III.](a) Give or receive or attempt to give or receive remuneration in any form pursuant to any agreement or understanding, oral or otherwise, for the referral of title insurance business.
[IV.](b) Give or receive or attempt to give or receive any portion or percentage of any charge made or received in connection with the business of title insurance if such portion or percentage of the charge given or received is not for services actually rendered. For purposes of this chapter, “services actually rendered” shall include, but not be limited to, a reasonable examination of a title, including instruments of record, and a determination of insurability of such title in accordance with sound underwriting practices. “Services actually rendered” shall not include the mere referral of title insurance business.
38:2 Title Insurance; Licensure of Title Agents. Amend RSA 416-A:15 to read as follows:
416-A:15 Title Insurance Agent’s License.
I. Title insurance agents shall be licensed in the manner provided for agents of insurance companies by RSA 402-J, except as [otherwise] provided in [this section] subparagraphs (a) and (b).
(a) Nothing in this chapter shall be construed to require the licensing of an attorney at law in good standing and admitted to practice before the supreme court of New Hampshire for the purpose of an examination of title and report of title thereon to a title insurance company upon which such title insurance company may issue a policy of title insurance.
(b) Nothing in this chapter shall be construed to require the licensing of a law firm acting as agent of a title insurance company; provided that any sale, solicitation, or negotiation of a contract of title insurance is conducted by a duly licensed title insurance agent.
II. [Full-time] Employees of a corporate contractual agent of a title insurance company, authorized by such company, or such contractual agent, to issue or countersign binders or policies in behalf of such title insurance company shall be licensed.
[III. Nothing herein shall be construed to require the licensing of an attorney at law in good standing and admitted to practice before the supreme court of New Hampshire for the purpose of an examination of title and report of title thereon to a title insurance company upon which such title insurance company may issue a policy of title insurance.]
[IV.] III. The commissioner of insurance may require such examination of applicants for producer licenses as title insurance agents as he or she shall consider necessary to carry out the purposes of this chapter.
[V. Nothing herein shall be construed to require the licensing of a law firm acting as agent of a title insurance company; provided that any sale, solicitation, or negotiation of a contract of title insurance is conducted by a duly licensed title insurance producer.]
38:3 Effective Date. This act shall take effect 60 days after its passage.
Approved: May 15, 2009
Effective Date: July 14, 2009