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Senate Bill 735 |
Senate Author: Carona |
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Effective: 9-1-11 |
House Sponsor: Smithee |
Senate Bill 735 amends the Insurance Code to prohibit a title insurance company from insuring against loss or damage sustained by reason of any claim that under federal bankruptcy, state insolvency, or similar creditor's rights laws the transaction vesting title in the insured as shown in the policy or creating the lien of the insured mortgage is a preference or preferential transfer or a fraudulent transfer. The bill authorizes the commissioner of insurance by rule to designate coverages that violate this prohibition. The bill prohibits a title insurance company from engaging in the business of title insurance in Texas if the company provides anywhere in the United States insurance of the type prohibited above, except to the extent that the laws of another state require the company to provide that type of insurance.