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AB-762 Title insurers: finances and investments.(2017-2018)

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Date Published: 03/23/2017 09:00 PM
AB762:v98#DOCUMENT

Amended  IN  Assembly  March 23, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 762


Introduced by Assembly Member Waldron

February 15, 2017


An act to amend Section 12340.1 12370 of the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 762, as amended, Waldron. Title insurance. insurers: finances and investments.
Existing law defines title insurance as insuring, guaranteeing, or indemnifying an owner of real or personal property or the holder of liens or encumbrances or others who have interests in the property against loss or damage due to liens, encumbrances, or defects in the title to the insured property, defects in liens or encumbrances, or defects in title searches. Existing law requires every title insurer to annually set apart a sum equal to 10% of its premiums collected during the year. Those sums are required to be allowed to accumulate until a fund is created equal to 25% of the aggregate of the subscribed capital stock of the insurer, or $1,000,000, whichever is the lower amount. The fund is known as the “title surplus fund.”

This bill would make technical, nonsubstantive changes to those provisions.

This bill would increase the annual sum required to be set apart by the title insurer to 12% of its premiums collected during the year and would provide that the monetary amount required to be allowed to accumulate in the title surplus fund, as provided, be increased to $1,250,000.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 12370 of the Insurance Code is amended to read:

12370.
 (a) Every title insurer shall annually set apart a sum equal to 10 12 percent of its premiums collected during the year. Such Those sums shall be allowed to accumulate until a fund is created equal in amount to 25 percent of the aggregate of the subscribed capital stock of the insurer, or one million dollars ($1,000,000), one million two hundred fifty thousand dollars ($1,250,000), whichever is the lower amount. After
(b) After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such 12380), that amount shall be reduced by the aggregate amount which shall be that is set aside and maintained by such that insurer in such an unearned premium reserve. Such That fund shall be known as the “title insurance surplus fund.”

SECTION 1.Section 12340.1 of the Insurance Code is amended to read:
12340.1.

“Title insurance” means insuring, guaranteeing, or indemnifying owners of real or personal property or the holders of liens or encumbrances thereon or others interested therein against loss or damage suffered by reason of the following:

(a)Liens or encumbrances on, or defects in, the title to the property.

(b)Invalidity or unenforceability of any liens or encumbrances on the property.

(c)Incorrectness of searches relating to the title to real or personal property.