|
House Bill 2604 |
House Author: Taylor, Larry |
|
Effective: 6-17-11 |
Senate Sponsor: Harris |
House Bill 2604 amends the Insurance Code to authorize a title insurance agent to maintain a solvency account to accrue and hold unencumbered assets. The bill establishes requirements relating to the minimum amount for the initial deposit in a solvency account, authorizing the deposit to be an amount less than the amount of unencumbered assets with a market value in excess of liabilities required to be maintained by an agent in accordance with current law. The bill establishes requirements relating to the location, access to, and audit of a solvency account; solvency account deposits; and interest accrued in a solvency account. The bill sets out powers and duties of the commissioner of insurance, including any required or authorized orders relating to access or release of funds in such an account under certain conditions.
House Bill 2604 authorizes an agent, if an agent or an agent's principal office voluntarily ceases to engage in business, surrenders the agent's license, and liquidates the agent's assets, to apply to the Texas Department of Insurance for the release of the agent's solvency account. The bill requires an agent who closes a home office issue transaction in which a title insurance company issues a policy of title insurance and who remits premium to the title insurance company to make the deposit required for a solvency account. Previous law required the annual audit of escrow accounts, for purposes of the certification of unencumbered assets, to be accompanied by certification by a certified public accountant that the agent has the appropriate unencumbered assets in excess of liabilities. The bill instead requires the audit to be accompanied by a certification by the title insurance agent or direct operation.