FINAL BILL REPORT

SSB 6589

                              C 76 L 90

BYSenate Committee on Financial Institutions & Insurance (originally sponsored by Senators von Reichbauer, Moore and Johnson)

Changing provisions relating to which county a title insurer may do business.

Senate Committee on Financial Institutions & Insurance

House Committe on Financial Institutions & Insurance

SYNOPSIS AS ENACTED

BACKGROUND:

Currently, a title insurer can obtain a certificate of authority from the Insurance Commissioner if certain statutory criteria are met.  These criteria include a requirement that a title insurer must own and maintain a complete set of tract indexes of the county in which its principal office in Washington is located.  In addition, a title insurer must maintain a proscribed deposit in a guaranty fund.

A title insurer may do business in two or more counties if certain guaranty fund deposit requirements are maintained.  Moreover, the title insurer must own and maintain, or have a duly authorized agent that owns and maintains, a complete set of tract indexes for the additional counties where the insurer transacts business.

SUMMARY:

A title insurer may transact business in a county where the insurer purchases a title policy from another title insurer authorized to transact business in that county.  The purchasing title insurer shall purchase the full amount of insurance to be ultimately insured under the title policy.

The purchasing title insurer must pay the full charge for the policy and must charge the same amount to its own customer.  The purchasing title insurer may combine the purchased insurance in a single policy that insures the title of one or more other pieces of property.

A title insurer purchasing a policy under this section is required to notify its customer of this transaction.

VOTES ON FINAL PASSAGE:

     Senate   45    0

     House 97  0

EFFECTIVE:June 7, 1990