State Codes and Statutes

Statutes > California > Ins > 12414.20-12414.31

INSURANCE CODE
SECTION 12414.20-12414.31



12414.20.  The commissioner may, as often as may be reasonable and
necessary, make or cause to be made an examination of any advisory
organization for the business of title insurance in this state.



12414.21.  The commissioner may, pursuant to reasonable rules and
regulations which he shall prescribe, make or cause to be made an
examination of every title insurer, underwritten title company or
controlled escrow company engaged in the business of title insurance
to ascertain whether such person or entity and every rate and rating
system used in the business of title insurance complies with the
requirements and standards of Article 5.5 (commencing with Section
12401) of this chapter. Such examination shall not be a part of a
periodic general examination participated in by a representative of
more than one state.


12414.22.  The officers, managers, agents, and employees of any
advisory organization, title insurer, underwritten title company, or
controlled escrow company may be examined at any time under oath and
shall exhibit all books, records, accounts, documents, or agreements
governing their method of operation, together with all data,
statistics, and information of every kind and character collected or
considered by such persons or entities in the conduct of the
operations to which such examination relates.



12414.23.  The reasonable cost of any examination authorized by this
article shall be paid by the advisory organization, title insurer,
underwritten title company, or controlled escrow company to be
examined. A copy of any written report which is prepared as a result
of a full balance sheet financial examination conducted pursuant to
Section 12389, shall be provided to the entity examined within 30
days following the production of the report.
   In the event any examination or review of financial statements has
resulted in a requirement of, or directive to, the entity to make
changes in its conduct or the business of title insurance, those
requirements or directives shall be in writing, and provided to the
entity.



12414.24.  No person, title insurer, underwritten title company,
controlled escrow company, or advisory organization shall willfully
withhold information from, or knowingly give false or misleading
information to, the commissioner or to any advisory organization
which will affect rates for the business of title insurance to which
the provisions of this chapter are applicable.



12414.25.  (a) Any person, title insurer, underwritten title
company, or controlled escrow company who fails to comply with a
final order of the commissioner under this chapter shall be liable to
the state in an amount not exceeding one hundred dollars ($100), but
if such failure is willful he or it shall be liable to the state in
an amount not exceeding five thousand dollars ($5,000) for such
failure. The commissioner shall collect the amount so payable and may
bring an action in the name of the people of the State of California
to enforce collection. Such penalties may be in addition to any
other penalties provided by law.
   (b) A willful violation of the provisions of this chapter is a
misdemeanor.


12414.26.  No act done, action taken, or agreement made pursuant to
the authority conferred by Article 5.5 (commencing with Section
12401) or Article 5.7 (commencing with Section 12402) of this chapter
shall constitute a violation of or grounds for prosecution or civil
proceedings under any other law of this state heretofore or hereafter
enacted which does not specifically refer to insurance.



12414.27.  Commencing 120 days following January 1, 1974, no title
insurer, underwritten title company or controlled escrow company
shall charge for any title policy or service in connection with the
business of title insurance, except in accordance with rate filings
which have become effective pursuant to Article 5.5 (commencing with
Section 12401) of this chapter or as otherwise authorized by such
article; provided, however, where a rate is on file with the
commissioner and in effect immediately prior to such date, such rate
shall continue in effect until a new rate filing is thereafter made
and becomes effective in the manner provided in Article 5.5
(commencing with Section 12401) of this chapter.



12414.28.  All title policies issued by title insurers shall be
subscribed by the president or a vice president and by the secretary
or an assistant secretary of the corporation. All such title policies
are as binding and obligatory upon the corporation as if executed
over the corporate seal. The signatures of such officers, or any one
of them, may be in their own handwriting or engraved, lithographed,
printed, stamped, or otherwise affixed to such title policies. Any
title policy so signed shall be presumed to be duly subscribed, and
if the title policy provides for an additional signature and such
signature appears thereon a like presumption shall apply.



12414.29.  The administration and enforcement of Article 5.5
(commencing with Section 12401) and Article 5.7 (commencing with
Section 12402) of this chapter shall be governed solely by the
provisions of this chapter. Except as provided in this chapter, no
other law relating to insurance and no other provisions in this code
heretofore or hereafter enacted shall apply to or be construed as
supplementing or modifying the provisions of such articles unless
such other law or other provision expressly so provides and
specifically refers to the sections of such articles which it intends
to supplement or modify. The provisions of this chapter and
regulations adopted pursuant thereto shall constitute the exclusive
regulation of the conduct of escrow and title transactions by
entities engaged in the business of title insurance as defined in
Section 12340.3, notwithstanding any local regulation or ordinance.



12414.30.  (a) When constituting an offer to issue an owner's policy
of title insurance, a preliminary report shall incorporate the
following statement, in bold print on front of the preliminary
report:

   "Please read the exceptions shown or referred to below and the
exceptions and exclusions set forth in Exhibit A of this report
carefully. The exceptions and exclusions are meant to provide you
with notice of matters which are not covered under the terms of the
title insurance policy and should be carefully considered.
   It is important to note that this preliminary report is not a
written representation as to the condition of title and may not list
all liens, defects, and encumbrances affecting title to the land."

   (b) Upon request, a title insurance company may provide coverage
against loss or damage under the terms, conditions, and stipulations
of the title insurance policy for any monetary lien set forth in the
preliminary report.
   (c) This section does not modify any of the provisions of Section
12340.11.


12414.31.  (a) (1) Whenever the commissioner takes any formal
enforcement or disciplinary action directly against an employee of a
title insurer, underwritten title company, or controlled escrow
company, for malfeasance or misconduct committed by the employee in
his or her performance of escrow related services, upon the action
becoming final the commissioner shall notify the Real Estate
Commissioner and the Commissioner of Corporations of the action or
actions taken. The purpose of this notification is to alert the
departments that enforcement or disciplinary action has been taken,
if the employee seeks or obtains employment with entities regulated
by the departments.
   (2) The commissioner shall provide the Real Estate Commissioner
and the Commissioner of Corporations, in addition to the notification
of the action taken, with a copy of the written accusation,
statement of issues, or order issued or filed in the matter and, at
the request of the Real Estate Commissioner or Commissioner of
Corporations, with any underlying factual material relevant to the
enforcement or disciplinary action. Any confidential information
provided by the commissioner to the Commissioner of Corporations or
the Real Estate Commissioner shall not be made public pursuant to
this section. Notwithstanding any other provision of law, the
disclosure of any underlying factual material to the Commissioner of
Corporations or the Real Estate Commissioner shall not operate as a
waiver of confidentiality or any privilege that the commissioner may
assert.
   (b) The commissioner shall establish and maintain, on the Web site
maintained by the Department of Insurance, a separate and readily
identifiable database of all persons who have been subject to any
enforcement or disciplinary action that triggers the notification
requirements of this section. The database shall also contain a
direct link to the databases, described in Section 10176.1 of the
Business and Professions Code and Section 17423.1 of the Financial
Code and required to be maintained on the Web sites of the Department
of Real Estate and the Department of Corporations, respectively, of
persons who have been subject to enforcement or disciplinary action
for malfeasance or misconduct related to the escrow industry by the
Commissioner of Corporations and the Real Estate Commissioner.
   (c) There shall be no liability on the part of, and no cause of
action of any nature shall arise against, the State of California,
the Department of Insurance, the Insurance Commissioner, any other
state agency, or any officer, agent, employee, consultant, or
contractor of the state, for the release of any false or unauthorized
information pursuant to this section, unless the release of that
information was done with knowledge and malice, or for the failure to
release any information pursuant to this section.


State Codes and Statutes

Statutes > California > Ins > 12414.20-12414.31

INSURANCE CODE
SECTION 12414.20-12414.31



12414.20.  The commissioner may, as often as may be reasonable and
necessary, make or cause to be made an examination of any advisory
organization for the business of title insurance in this state.



12414.21.  The commissioner may, pursuant to reasonable rules and
regulations which he shall prescribe, make or cause to be made an
examination of every title insurer, underwritten title company or
controlled escrow company engaged in the business of title insurance
to ascertain whether such person or entity and every rate and rating
system used in the business of title insurance complies with the
requirements and standards of Article 5.5 (commencing with Section
12401) of this chapter. Such examination shall not be a part of a
periodic general examination participated in by a representative of
more than one state.


12414.22.  The officers, managers, agents, and employees of any
advisory organization, title insurer, underwritten title company, or
controlled escrow company may be examined at any time under oath and
shall exhibit all books, records, accounts, documents, or agreements
governing their method of operation, together with all data,
statistics, and information of every kind and character collected or
considered by such persons or entities in the conduct of the
operations to which such examination relates.



12414.23.  The reasonable cost of any examination authorized by this
article shall be paid by the advisory organization, title insurer,
underwritten title company, or controlled escrow company to be
examined. A copy of any written report which is prepared as a result
of a full balance sheet financial examination conducted pursuant to
Section 12389, shall be provided to the entity examined within 30
days following the production of the report.
   In the event any examination or review of financial statements has
resulted in a requirement of, or directive to, the entity to make
changes in its conduct or the business of title insurance, those
requirements or directives shall be in writing, and provided to the
entity.



12414.24.  No person, title insurer, underwritten title company,
controlled escrow company, or advisory organization shall willfully
withhold information from, or knowingly give false or misleading
information to, the commissioner or to any advisory organization
which will affect rates for the business of title insurance to which
the provisions of this chapter are applicable.



12414.25.  (a) Any person, title insurer, underwritten title
company, or controlled escrow company who fails to comply with a
final order of the commissioner under this chapter shall be liable to
the state in an amount not exceeding one hundred dollars ($100), but
if such failure is willful he or it shall be liable to the state in
an amount not exceeding five thousand dollars ($5,000) for such
failure. The commissioner shall collect the amount so payable and may
bring an action in the name of the people of the State of California
to enforce collection. Such penalties may be in addition to any
other penalties provided by law.
   (b) A willful violation of the provisions of this chapter is a
misdemeanor.


12414.26.  No act done, action taken, or agreement made pursuant to
the authority conferred by Article 5.5 (commencing with Section
12401) or Article 5.7 (commencing with Section 12402) of this chapter
shall constitute a violation of or grounds for prosecution or civil
proceedings under any other law of this state heretofore or hereafter
enacted which does not specifically refer to insurance.



12414.27.  Commencing 120 days following January 1, 1974, no title
insurer, underwritten title company or controlled escrow company
shall charge for any title policy or service in connection with the
business of title insurance, except in accordance with rate filings
which have become effective pursuant to Article 5.5 (commencing with
Section 12401) of this chapter or as otherwise authorized by such
article; provided, however, where a rate is on file with the
commissioner and in effect immediately prior to such date, such rate
shall continue in effect until a new rate filing is thereafter made
and becomes effective in the manner provided in Article 5.5
(commencing with Section 12401) of this chapter.



12414.28.  All title policies issued by title insurers shall be
subscribed by the president or a vice president and by the secretary
or an assistant secretary of the corporation. All such title policies
are as binding and obligatory upon the corporation as if executed
over the corporate seal. The signatures of such officers, or any one
of them, may be in their own handwriting or engraved, lithographed,
printed, stamped, or otherwise affixed to such title policies. Any
title policy so signed shall be presumed to be duly subscribed, and
if the title policy provides for an additional signature and such
signature appears thereon a like presumption shall apply.



12414.29.  The administration and enforcement of Article 5.5
(commencing with Section 12401) and Article 5.7 (commencing with
Section 12402) of this chapter shall be governed solely by the
provisions of this chapter. Except as provided in this chapter, no
other law relating to insurance and no other provisions in this code
heretofore or hereafter enacted shall apply to or be construed as
supplementing or modifying the provisions of such articles unless
such other law or other provision expressly so provides and
specifically refers to the sections of such articles which it intends
to supplement or modify. The provisions of this chapter and
regulations adopted pursuant thereto shall constitute the exclusive
regulation of the conduct of escrow and title transactions by
entities engaged in the business of title insurance as defined in
Section 12340.3, notwithstanding any local regulation or ordinance.



12414.30.  (a) When constituting an offer to issue an owner's policy
of title insurance, a preliminary report shall incorporate the
following statement, in bold print on front of the preliminary
report:

   "Please read the exceptions shown or referred to below and the
exceptions and exclusions set forth in Exhibit A of this report
carefully. The exceptions and exclusions are meant to provide you
with notice of matters which are not covered under the terms of the
title insurance policy and should be carefully considered.
   It is important to note that this preliminary report is not a
written representation as to the condition of title and may not list
all liens, defects, and encumbrances affecting title to the land."

   (b) Upon request, a title insurance company may provide coverage
against loss or damage under the terms, conditions, and stipulations
of the title insurance policy for any monetary lien set forth in the
preliminary report.
   (c) This section does not modify any of the provisions of Section
12340.11.


12414.31.  (a) (1) Whenever the commissioner takes any formal
enforcement or disciplinary action directly against an employee of a
title insurer, underwritten title company, or controlled escrow
company, for malfeasance or misconduct committed by the employee in
his or her performance of escrow related services, upon the action
becoming final the commissioner shall notify the Real Estate
Commissioner and the Commissioner of Corporations of the action or
actions taken. The purpose of this notification is to alert the
departments that enforcement or disciplinary action has been taken,
if the employee seeks or obtains employment with entities regulated
by the departments.
   (2) The commissioner shall provide the Real Estate Commissioner
and the Commissioner of Corporations, in addition to the notification
of the action taken, with a copy of the written accusation,
statement of issues, or order issued or filed in the matter and, at
the request of the Real Estate Commissioner or Commissioner of
Corporations, with any underlying factual material relevant to the
enforcement or disciplinary action. Any confidential information
provided by the commissioner to the Commissioner of Corporations or
the Real Estate Commissioner shall not be made public pursuant to
this section. Notwithstanding any other provision of law, the
disclosure of any underlying factual material to the Commissioner of
Corporations or the Real Estate Commissioner shall not operate as a
waiver of confidentiality or any privilege that the commissioner may
assert.
   (b) The commissioner shall establish and maintain, on the Web site
maintained by the Department of Insurance, a separate and readily
identifiable database of all persons who have been subject to any
enforcement or disciplinary action that triggers the notification
requirements of this section. The database shall also contain a
direct link to the databases, described in Section 10176.1 of the
Business and Professions Code and Section 17423.1 of the Financial
Code and required to be maintained on the Web sites of the Department
of Real Estate and the Department of Corporations, respectively, of
persons who have been subject to enforcement or disciplinary action
for malfeasance or misconduct related to the escrow industry by the
Commissioner of Corporations and the Real Estate Commissioner.
   (c) There shall be no liability on the part of, and no cause of
action of any nature shall arise against, the State of California,
the Department of Insurance, the Insurance Commissioner, any other
state agency, or any officer, agent, employee, consultant, or
contractor of the state, for the release of any false or unauthorized
information pursuant to this section, unless the release of that
information was done with knowledge and malice, or for the failure to
release any information pursuant to this section.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Ins > 12414.20-12414.31

INSURANCE CODE
SECTION 12414.20-12414.31



12414.20.  The commissioner may, as often as may be reasonable and
necessary, make or cause to be made an examination of any advisory
organization for the business of title insurance in this state.



12414.21.  The commissioner may, pursuant to reasonable rules and
regulations which he shall prescribe, make or cause to be made an
examination of every title insurer, underwritten title company or
controlled escrow company engaged in the business of title insurance
to ascertain whether such person or entity and every rate and rating
system used in the business of title insurance complies with the
requirements and standards of Article 5.5 (commencing with Section
12401) of this chapter. Such examination shall not be a part of a
periodic general examination participated in by a representative of
more than one state.


12414.22.  The officers, managers, agents, and employees of any
advisory organization, title insurer, underwritten title company, or
controlled escrow company may be examined at any time under oath and
shall exhibit all books, records, accounts, documents, or agreements
governing their method of operation, together with all data,
statistics, and information of every kind and character collected or
considered by such persons or entities in the conduct of the
operations to which such examination relates.



12414.23.  The reasonable cost of any examination authorized by this
article shall be paid by the advisory organization, title insurer,
underwritten title company, or controlled escrow company to be
examined. A copy of any written report which is prepared as a result
of a full balance sheet financial examination conducted pursuant to
Section 12389, shall be provided to the entity examined within 30
days following the production of the report.
   In the event any examination or review of financial statements has
resulted in a requirement of, or directive to, the entity to make
changes in its conduct or the business of title insurance, those
requirements or directives shall be in writing, and provided to the
entity.



12414.24.  No person, title insurer, underwritten title company,
controlled escrow company, or advisory organization shall willfully
withhold information from, or knowingly give false or misleading
information to, the commissioner or to any advisory organization
which will affect rates for the business of title insurance to which
the provisions of this chapter are applicable.



12414.25.  (a) Any person, title insurer, underwritten title
company, or controlled escrow company who fails to comply with a
final order of the commissioner under this chapter shall be liable to
the state in an amount not exceeding one hundred dollars ($100), but
if such failure is willful he or it shall be liable to the state in
an amount not exceeding five thousand dollars ($5,000) for such
failure. The commissioner shall collect the amount so payable and may
bring an action in the name of the people of the State of California
to enforce collection. Such penalties may be in addition to any
other penalties provided by law.
   (b) A willful violation of the provisions of this chapter is a
misdemeanor.


12414.26.  No act done, action taken, or agreement made pursuant to
the authority conferred by Article 5.5 (commencing with Section
12401) or Article 5.7 (commencing with Section 12402) of this chapter
shall constitute a violation of or grounds for prosecution or civil
proceedings under any other law of this state heretofore or hereafter
enacted which does not specifically refer to insurance.



12414.27.  Commencing 120 days following January 1, 1974, no title
insurer, underwritten title company or controlled escrow company
shall charge for any title policy or service in connection with the
business of title insurance, except in accordance with rate filings
which have become effective pursuant to Article 5.5 (commencing with
Section 12401) of this chapter or as otherwise authorized by such
article; provided, however, where a rate is on file with the
commissioner and in effect immediately prior to such date, such rate
shall continue in effect until a new rate filing is thereafter made
and becomes effective in the manner provided in Article 5.5
(commencing with Section 12401) of this chapter.



12414.28.  All title policies issued by title insurers shall be
subscribed by the president or a vice president and by the secretary
or an assistant secretary of the corporation. All such title policies
are as binding and obligatory upon the corporation as if executed
over the corporate seal. The signatures of such officers, or any one
of them, may be in their own handwriting or engraved, lithographed,
printed, stamped, or otherwise affixed to such title policies. Any
title policy so signed shall be presumed to be duly subscribed, and
if the title policy provides for an additional signature and such
signature appears thereon a like presumption shall apply.



12414.29.  The administration and enforcement of Article 5.5
(commencing with Section 12401) and Article 5.7 (commencing with
Section 12402) of this chapter shall be governed solely by the
provisions of this chapter. Except as provided in this chapter, no
other law relating to insurance and no other provisions in this code
heretofore or hereafter enacted shall apply to or be construed as
supplementing or modifying the provisions of such articles unless
such other law or other provision expressly so provides and
specifically refers to the sections of such articles which it intends
to supplement or modify. The provisions of this chapter and
regulations adopted pursuant thereto shall constitute the exclusive
regulation of the conduct of escrow and title transactions by
entities engaged in the business of title insurance as defined in
Section 12340.3, notwithstanding any local regulation or ordinance.



12414.30.  (a) When constituting an offer to issue an owner's policy
of title insurance, a preliminary report shall incorporate the
following statement, in bold print on front of the preliminary
report:

   "Please read the exceptions shown or referred to below and the
exceptions and exclusions set forth in Exhibit A of this report
carefully. The exceptions and exclusions are meant to provide you
with notice of matters which are not covered under the terms of the
title insurance policy and should be carefully considered.
   It is important to note that this preliminary report is not a
written representation as to the condition of title and may not list
all liens, defects, and encumbrances affecting title to the land."

   (b) Upon request, a title insurance company may provide coverage
against loss or damage under the terms, conditions, and stipulations
of the title insurance policy for any monetary lien set forth in the
preliminary report.
   (c) This section does not modify any of the provisions of Section
12340.11.


12414.31.  (a) (1) Whenever the commissioner takes any formal
enforcement or disciplinary action directly against an employee of a
title insurer, underwritten title company, or controlled escrow
company, for malfeasance or misconduct committed by the employee in
his or her performance of escrow related services, upon the action
becoming final the commissioner shall notify the Real Estate
Commissioner and the Commissioner of Corporations of the action or
actions taken. The purpose of this notification is to alert the
departments that enforcement or disciplinary action has been taken,
if the employee seeks or obtains employment with entities regulated
by the departments.
   (2) The commissioner shall provide the Real Estate Commissioner
and the Commissioner of Corporations, in addition to the notification
of the action taken, with a copy of the written accusation,
statement of issues, or order issued or filed in the matter and, at
the request of the Real Estate Commissioner or Commissioner of
Corporations, with any underlying factual material relevant to the
enforcement or disciplinary action. Any confidential information
provided by the commissioner to the Commissioner of Corporations or
the Real Estate Commissioner shall not be made public pursuant to
this section. Notwithstanding any other provision of law, the
disclosure of any underlying factual material to the Commissioner of
Corporations or the Real Estate Commissioner shall not operate as a
waiver of confidentiality or any privilege that the commissioner may
assert.
   (b) The commissioner shall establish and maintain, on the Web site
maintained by the Department of Insurance, a separate and readily
identifiable database of all persons who have been subject to any
enforcement or disciplinary action that triggers the notification
requirements of this section. The database shall also contain a
direct link to the databases, described in Section 10176.1 of the
Business and Professions Code and Section 17423.1 of the Financial
Code and required to be maintained on the Web sites of the Department
of Real Estate and the Department of Corporations, respectively, of
persons who have been subject to enforcement or disciplinary action
for malfeasance or misconduct related to the escrow industry by the
Commissioner of Corporations and the Real Estate Commissioner.
   (c) There shall be no liability on the part of, and no cause of
action of any nature shall arise against, the State of California,
the Department of Insurance, the Insurance Commissioner, any other
state agency, or any officer, agent, employee, consultant, or
contractor of the state, for the release of any false or unauthorized
information pursuant to this section, unless the release of that
information was done with knowledge and malice, or for the failure to
release any information pursuant to this section.