Special requirements for title insurance producers and agencies.
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(1)
(a) A person that receives a new license under this title as an agency title insurance producer shall at the time of licensure be owned or managed by at least one individual who is licensed for at least three of the five years immediately preceding the date on which the agency title insurance producer applies for a license with both:
(i) a title examination line of authority; and
(ii) an escrow line of authority.
(b) An agency title insurance producer subject to Subsection (1)(a) may comply with Subsection (1)(a) by having the agency title insurance producer owned or managed by:
(i) one or more individuals who are licensed with the title examination line of authority for the time period provided in Subsection (1)(a); and
(ii) one or more individuals who are licensed with the escrow line of authority for the time period provided in Subsection (1)(a).
(c) A person licensed as an agency title insurance producer shall at all times during the term of licensure be owned or managed by at least one individual who is licensed for at least three years within the preceding five-year period with both:
(i) a title examination line of authority; and
(ii) an escrow line of authority.
(d) The Title and Escrow Commission may by rule, subject to Section 31A-2-404, exempt an attorney with real estate experience from the experience requirements in Subsection (1)(a).
(e) An individual who satisfies the requirements of this Subsection (1) is known as a "qualifying licensee." At any given time, an individual may be a qualifying licensee for not more than two agency title insurance producers.
(2)
(a) An individual title insurance producer or agency title insurance producer appointed by an insurer shall maintain:
(i) a fidelity bond;
(ii) a professional liability insurance policy; or
(iii) a financial protection:
(A) equivalent to that described in Subsection (2)(a)(i) or (ii); and
(B) that the commissioner considers adequate.
(b) The bond, insurance, or financial protection required by this Subsection (2):
(i) shall be supplied under a contract approved by the commissioner to provide protection against the improper performance of any service in conjunction with the issuance of a contract or policy of title insurance; and
(ii) be in a face amount no less than $250,000.
(c) The Title and Escrow Commission may by rule, subject to Section 31A-2-404, exempt individual title insurance producer or agency title insurance producers from the requirements of this Subsection (2) upon a finding that, and only so long as, the required policy or bond is generally unavailable at reasonable rates.
(3) An individual title insurance producer or agency title insurance producer appointed by an insurer may maintain a reserve fund to the extent money was deposited before July 1, 2008, and not withdrawn to the income of the individual title insurance producer or agency title insurance producer.
(4) An examination for licensure shall include questions regarding the examination of title to real property.
(5) An individual title insurance producer may not perform the functions of escrow unless the individual title insurance producer has been examined on the fiduciary duties and procedures involved in those functions.
(6) The Title and Escrow Commission may adopt rules, establishing an examination for a license that will satisfy this section, subject to Section 31A-2-404, and after consulting with the commissioner's test administrator.
(7) A license may be issued to an individual title insurance producer or agency title insurance producer who has qualified:
(a) to perform only examinations of title as specified in Subsection (4);
(b) to handle only escrow arrangements as specified in Subsection (5); or
(c) to act as a title marketing representative.
(8)
(a) A person licensed to practice law in Utah is exempt from the requirements of Subsections (2) and (3) if that person issues 12 or less policies in any 12-month period.
(b) In determining the number of policies issued by a person licensed to practice law in Utah for purposes of Subsection (8)(a), if the person licensed to practice law in Utah issues a policy to more than one party to the same closing, the person is considered to have issued only one policy.
(9) A person licensed to practice law in Utah, whether exempt under Subsection (8) or not, shall maintain a trust account separate from a law firm trust account for all title and real estate escrow transactions.