H-1943              _______________________________________________

                                                   HOUSE BILL NO. 1105

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Wang, Grimm, Madsen, Ebersole, Fisher, Walk, Gallagher and May

Read first time 2/25/87 and referred to Committee on Ways & Means.

AN ACT Relating to creation of a joint underwriting association for title insurance; adding a new chapter to Title 48 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The legislature finds that severe economic problems result when title insurers refuse to issue policies on the title to property without noting in their policies an exception for Indian claims.  This exception effectively prevents the owners from selling their property or obtaining loans to improve it.  It is the intent of the legislature to provide for the availability of title insurance policies without that exception.

NEW SECTION. Sec. 2.     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

          (1) "Association" means the joint underwriting association established pursuant to the provisions of this chapter.

          (2) "Title insurance" means insurance subject to the provisions of chapter 48.29 RCW.

          (3) "Applicant" means a person who is unable to obtain a title insurance policy without an exception for Indian claims.

NEW SECTION. Sec. 3.     The commissioner shall approve by July 1, 1987, a reasonable plan for the establishment of a nonprofit, joint underwriting association for title insurance on real property located within this state, subject to the conditions and limitations contained in this chapter.

NEW SECTION. Sec. 4.     The association shall consist of all title insurers engaged in writing title insurance within this state.  Every such insurer shall be a member of the association and shall remain a member as a condition of its authority to continue to transact business in this state.

NEW SECTION. Sec. 5.     Any applicant may apply to the association to purchase title insurance, and the association shall offer a policy at a rate not in excess of one hundred and fifty percent of the rate that would ordinarily be charged for a policy covering similar real property not subject to Indian claims or related challenges to title.  Such policy may not contain an exception for Indian claims.

NEW SECTION. Sec. 6.     By December 1, 1988, the commissioner shall file or cause to be filed a report to the legislature detailing the operations, finances, claims, and marketing experience of the association.

NEW SECTION. Sec. 7.     The commissioner may adopt all rules necessary to ensure the efficient, equitable operation of the association, including but not limited to, rules requiring or limiting certain policy provisions.

NEW SECTION. Sec. 8.     Sections 1 through 7 of this act shall constitute a new chapter in Title 48 RCW.

NEW SECTION. Sec. 9.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.