3901-7-02 Title insurance agents maintenance of surety bond and errors and omissions coverage.

 

 

 

Rule Summary and Fiscal Analysis (Part A)

 

Department of Insurance

Agency Name

 

Tina Chubb

Division                                                                  Contact

 

50 W Town Street Suite 300 Columbus OH 43215-0000

[phone]     (614)

644-3742

Agency Mailing Address (Plus Zip)                                       Phone                     Fax

[e-mail]

Email

3901-7-02

Rule Number

NO CHANGE

TYPE of rule filing

Rule Title/Tag Line              Title insurance agents maintenance of surety bond and errors

and omissions coverage.

RULE SUMMARY

1.  Is the rule being filed for five year review (FYR)? Yes

2.  Are you proposing this rule as a result of recent legislation? No

3.  Statute prescribing the procedure in accordance with the agency is required to adopt the rule: 119.03

4.  Statute(s) authorizing agency to adopt the rule: 3901.041, 3953.23

5.  Statute(s) the rule, as filed, amplifies or implements: 3953.23

6.  State the reason(s) for proposing (i.e., why are you filing,) this rule:

This rule is being filed as part of the agency five year rule review pursuant to section 119.03 of the Revised Code.

7.  If the rule is an AMENDMENT, then summarize the changes and the content of the proposed rule; If the rule type is RESCISSION, NEW or NO CHANGE, then summarize the content of the rule:

The rule sets forth the requirements regarding surety bond and errors and omissions coverage to be maintained by title insurance agents or agencies under conditions specified in section 3953.23 of the Revised Code.

No change.

8.  If the rule incorporates a text or other material by reference and the agency claims the incorporation by reference is exempt from compliance with sections

121.71 to 121.74 of the Revised Code because the text or other material is generally available to persons who reasonably can be expected to be affected by the rule, provide an explanation of how the text or other material is generally available to those persons:

This response left blank because filer specified online that the rule does not incorporate a text or other material by reference.

9.  If the rule incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material electronically, provide an explanation of why filing the text or other material electronically was infeasible:

This response left blank because filer specified online that the rule does not incorporate a text or other material by reference.

10.  If the rule is being rescinded and incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material, provide an explanation of why filing the text or other material was infeasible:

Not Applicable.

11.  If revising or refiling this rule, identify changes made from the previously filed version of this rule; if none, please state so. If applicable, indicate each specific paragraph of the rule that has been modified:

Not Applicable.

12.  Five Year Review (FYR) Date: 8/19/2016 and 08/19/2021

(If the rule is not exempt and you answered NO to question No. 1, provide the scheduled review date. If you answered YES to No. 1, the review date for this rule is the filing date.)

NOTE: If the rule is not exempt at the time of final filing, two dates are required: the current review date plus a date not to exceed 5 years from the effective date

for Amended rules or a date not to exceed 5 years from the review date for No Change rules.

FISCAL ANALYSIS

13.  Estimate the total amount by which this proposed rule would increase / decrease either revenues / expenditures for the agency during the current biennium (in dollars): Explain the net impact of the proposed changes to the budget of your agency/department.

This will have no impact on revenues or expenditures. 0.00

Not applicable.

14.  Identify the appropriation (by line item etc.) that authorizes each expenditure necessitated by the proposed rule:

Not applicable.

15.  Provide a summary of the estimated cost of compliance with the rule to all directly affected persons. When appropriate, please include the source for your information/estimated costs, e.g. industry, CFR, internal/agency:

Title insurance agents must maintain errors and omissions insurance with minimum coverage of $250,000. Though insurance cost would vary for each business, it is estimated to be available for $600-$1,500 annual premium. Title agents handling escrow for transactions that involve no title insurance must maintain surety bonds with minimum coverage of $150,000. Though cost varies according to credit and other factors, bonds for this level of coverage are estimated to be available for

$2,000-$5,000.

16.  Does this rule have a fiscal effect on school districts, counties, townships, or municipal corporations? No

17.  Does this rule deal with environmental protection or contain a component dealing with environmental protection as defined in R. C. 121.39? No

S.B. 2 (129th General Assembly) Questions

18.  Has this rule been filed with the Common Sense Initiative Office pursuant to

R.C. 121.82? Yes

19.  Specific to this rule, answer the following:

A.) Does this rule require a license, permit, or any other prior authorization to engage in or operate a line of business? No

B.) Does this rule impose a criminal penalty, a civil penalty, or another sanction, or create a cause of action, for failure to comply with its terms? Yes

Compliance is required by statute as a condition of licensure and failure to comply may result in suspension or revocation of license.

C.) Does this rule require specific expenditures or the report of information as a condition of compliance? No