SRC-MWN S.B. 1306 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1306
By: Harris
Business & Commerce
3/25/2001
As Filed


DIGEST AND PURPOSE 

Current law provides that a title insurance company is authorized to delete
areas and boundaries exception in a title policy form if the insured person
provides a current survey. However, "current" is not defined in the
statute. Procedural Rule P-2a provides that the title agent can accept an
affidavit in lieu of a current survey in residential refinance
transactions, if there is an existing survey no older than seven years of
age. As proposed, S.B. 1306 provides that title agents should not rely on a
survey over seven years of age in extending survey coverage, regardless of
the type of property or transaction involved. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 1, Article 9, Insurance Code, by adding Article
9.21A, as follows: 

Art. 9.21A. RELIANCE ON PRE-EXISTING SURVEYS. Requires a pre-existing
survey to not be relied upon by a title insurance agent or company as
current for purposes of survey coverage if the survey is older than seven
years. 
 
SECTION 2. Effective date upon passage or September 1, 2001.