- May 21, 2010
- All Colorado Issuing Offices
- Amended Regulation 3-5-1
Please be advised that the Colorado Division of Insurance has amended Regulation 3-5-1. See attachment one. The effective date of the new regulation is May 1, 2010.
Division modifications include, but are not limited to, the following:
- All rate cards must denote, in a clear and conspicuous manner, the title insurance company (i.e., the underwriter) that filed the listed rates. See Section 5(B).
- All title agencies shall submit a complying fee filing, including a fee justification, for any new or amended agency fee (e.g., closing fee, ownership and encumbrance report fee). See Section 5(D).
- If a title agent, or title insurance company, issues a "to be determined" commitment, that individual or entity must: charge the applicable filed rate for that product; and make a good faith effort to collect that charge. See Sections 6(D)(5) and 6(D)(11).
- If a title agent, or title insurance company, issues an ownership and encumbrance report, that individual or entity must: charge the applicable filed fee for that product; and make a good faith effort to collect that charge. See Section 6(D)(11). See also attachment two.
- The use of "generic" or "catch all" exceptions is, as a general rule, prohibited. See Section 7(D).
- Fiduciary funds shall not be deposited by a title entity (i.e., title agent or title insurance company) into a treasury management account, sweep account, or any other type of investment account, unless and until prior written authorization has been obtained from all necessary parties for whom said funds are being held by the title entity. See Section 9 (E).
Please review all of the provisions ofRegulation 3-5-1 andimplementall necessary measuresto ensure compliance.
As to the new ownership and encumbrance report requirements, please review attachment two. In summary,it calls for the commencement of charges on May 1, 2010 andthe filing of related fees by June 1, 2010.
The Division's fee filing directions are set forth in Division Bulletin B-5-18. That bulletin is posted on the Division's website. Questions regarding fee filings may be submitted to the Division as statedon attachment two.
Colorado Division of Insurance Amended Regulation 3-5-1
DOI Advisory Letter
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If you have questions related to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.