2006 TEXAS TITLE INSURANCE BIENNIAL
RULE HEARING AGENDA ITEMS

CLICK ON THE AGENDA ITEM(s) BELOW TO OPEN AND READ 
THE COMPLETE VERSION OF EACH ITEM IN PDF  FORMAT.
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AND AS A WORD DOCUMENT. 

Agenda Item #2006-01 AS ADOPTED (WORD)
Agenda Item #2006-01 AS ADOPTED
Agenda Item #2006-01 AS AMENDED BY TLTA
Agenda Item #2006-01   
Filed by: Texas Land Title Association
Adopts: A new Co-Insurance Endorsement (Form T-___) to accommodate commercial lenders and owners who often request this endorsement in multi-state, multi-site, and other large transactions.

Agenda Item #2006-02 AS ADOPTED (WORD)
Agenda Item #2006-02 AS ADOPTED
Agenda Item #2006-02
Filed by: Texas Land Title Association
Amends: Procedural Rule P-6 to authorize a Co-insurer to issue a Co-insurance Endorsement to another Title Insurer’s Owner or Mortgagee Policy when the co-insurance transaction exceeds fifteen million dollars.

Agenda Item #2006-03 AS ADOPTED (WORD)
Agenda Item #2006-03 AS ADOPTED
Agenda Item #2006-03
Filed by: Texas Land Title Association
Repeals: The current Verification of Services Rendered Form T-00 and adopt a new Form T-00 to organize the information each entity participating in the transaction must provide and to assist underwriters in reporting that information to the Department.

Agenda Item #2006-04 AS ADOPTED (WORD)
Agenda Item #2006-04 AS ADOPTED
Agenda Item #2006-04
Filed by: Texas Land Title Association
Amends: The Supplemental Coverage Manufactured Housing Unit Endorsement Form T-31.1 to conform to the new American Land Title Association form by clarifying the insurance against personal property liens and by ensuring that a foreclosure of an insured mortgage may be conducted by one procedure.

Agenda Item #2006-05 AS ADOPTED (WORD)
Agenda Item #2006-05 AS ADOPTED
Agenda Item #2006-05 AS AMENDED BY TLTA
Agenda Item #2006-05
Amendment Filed by: Texas Land Title Association
Amends: The Revolving Credit Endorsement Form T-35 to change the name to the Revolving Credit/Future Advance Endorsement Form T-35 and to conform to the American Land Title Association form by expanding coverage to the lender.

Agenda Item #2006-06 AS ADOPTED (WORD)
Agenda Item #2006-06 AS ADOPTED
Agenda Item #2006-06
Filed by: Texas Land Title Association
Adopts: The Residential Real Property Affidavit T-47 to remove specific language in the affidavit that requires the name of the title company to be identified and to insert generic language to allow the affidavit to be prepared and executed early in the transaction process.

Agenda Item #2006-07 AS ADOPTED (WORD)
Agenda Item #2006-07 AS ADOPTED
Agenda Item #2006-07
Filed by: Texas Land Title Association
Adopts: A new Procedural Rule (P-___) that incorporates the procedural portion of Rate Rule R-2.(d) concerning a
policy issued to a qualified intermediary under IRS Code 1031 and also contains deletions and improved formatting.

Agenda Item #2006-08 AS ADOPTED (WORD)
Agenda Item #2006-08 AS ADOPTED
Agenda Item #2006-08
Filed by: Texas Land Title Association
Adopts: A new Procedural Rule (P-___) regarding the treatment of subordinate liens and leases in order to better alert title companies to comply with the instruction in Procedural Rule P-11.b.(8).

Agenda Item #2006-09 AS ADOPTED (WORD)
Agenda Item #2006-09 AS ADOPTED
Agenda Item #2006-09
Filed by: Texas Land Title Association
Adopts: A New Procedural Rule (P-___) in conformity with Insurance Code, §§2704.051 and 2704.052 to require an owner’s policy be issued in connection with a Mortgagee Policy unless the person acquiring title rejects it.

Agenda Item #2006-10 AS ADOPTED (WORD)
Agenda Item #2006-10 AS ADOPTED
Agenda Item #2006-10
Filed by: Texas Land Title Association
Adopts: A new Procedural Rule (P-___) to include procedures currently in other rate and procedural rules into one rule relating to determining the correct amount of insurance in owner and mortgagee polices.

Agenda Item #2006-11 DISAPPROVED
Filed by: Texas Land Title Association
Amends: Procedural Rule P-1 to rename the “Owner Policy” and the “Mortgagee Policy” to coincide with the
terminology utilized in the corresponding American Land Title Association policies and to provide that the new terminology be incorporated into newly printed or electronically generated forms.

Agenda Item #2006-12 AS ADOPTED (WORD)
Agenda Item #2006-12 AS ADOPTED
Agenda Item #2006-12 AS AMENDED BY TLTA
Agenda Item #2006-12
Filed by: Texas Land Title Association
Amends: Procedural Rule P-7 to incorporate the language from Bulletin 157 into the procedural rules and to resolve the question as to whether it is permissible to include the “successor in ownership” language as part of the Proposed Insured in a Commitment.

Agenda Item #2006-13 DISAPPROVED
Filed by: Texas Land Title Association
Amends: Procedural Rule P-17 to allow for electronic filing and recording of documents and to withdraw Bulletin 163 to allow a pass-through to consumers of electronic filing fees.

Agenda Item #2006-14 AS ADOPTED (WORD)
Agenda Item #2006-14 AS ADOPTED
Agenda Item #2006-14
Filed by: Texas Land Title Association
Amends: Procedural Rule P-21 to make the terms used in the rule consistent with Insurance Code, §2651.203 and
to update references to the Commissioner of Insurance.

Agenda Item #2006-15 AS ADOPTED (WORD)
Agenda Item #2006-15 AS ADOPTED
Agenda Item #2006-15
Filed by: Texas Land Title Association
Amends: Procedural Rule P-28 to eliminate the need for a company owning multiple title insurance companies to make multiple course submissions and/or assignments between the related title insurance company providers.

Agenda Item #2006-16 AS ADOPTED (WORD)
Agenda Item #2006-16 AS ADOPTED
Agenda Item #2004-16
Filed by: Texas Land Title Association
Amends: Procedural Rule P-45 to make the rule consistent with the federal requirements regarding the Maximum Claim Amount for FHA-insured loans and to allow the insured amount to be determined by lenders through a lender estimation of the maximum amount that may be secured by lien.

Agenda Item #2006-17 AS ADOPTED (WORD)
Agenda Item #2006-17 AS ADOPTED
Agenda Item #2006-17
Filed by: Texas Land Title Association
Date filed: Sept.7, 2004
Amends: Procedural Rule P-53 to remove the sunset provision contained within the rule and to ensure that the
rule will remain in effect beyond January 1, 2008.

Agenda Item #2006-18 AS AMENDED BY TLTA WITHDRAWN
Agenda Item #2006-18
Filed by: Texas Land Title Association 
Amends: Administrative Rule L-2 to allow a Direct Operation, Title Insurance Agent, or an attorney licensed as an escrow officer to contract with a person to employ that person as a bona fide employee to perform any duty or work, other than that of an escrow officer, at or before
an application for that person to be licensed as an escrow officer is filed with the Department and to remove the Department’s ability to deny an application or decline to renew an escrow license while an investigation, audit inquiry, disciplinary action, or allegation of a violation is pending.

Agenda Item #2006-19 AS ADOPTED (WORD)
Agenda Item #2006-19 AS ADOPTED
Agenda Item #2006-19
Filed by: Texas Land Title Association
Amends: Administrative Rule L-1 to provide that the Department must send notice of renewal to each agent at
least 45 days prior to the expiration of the agent’s license and, if not renewed, within 45 days after the license expires.

Agenda Item #2006-20 WITHDRAWN
Filed by: Texas Land Title Association
Amends: Administrative Rule L-1 to deny the Department the ability to deny an application or decline to renew the license of an agent while an investigation, audit inquiry, disciplinary action, or allegation of a violation is pending.

Agenda Item #2006-21 WITHDRAWN
Filed by: Texas Land Title Association
Amends: Administrative Rule L-3 to deny the Department the ability to deny an application or decline to renew the license of a Direct Operation while an investigation, audit inquiry, disciplinary action, or allegation of a violation is pending.

Agenda Item #2006-22 AS ADOPTED (WORD)
Agenda Item #2006-22 AS ADOPTED
Agenda Item #2006-22
Filed by: Texas Land Title Association 
Amends:  The Minimum Standards, Specific Instructions and Report forms for Audit of Trust Funds Required of
Texas Title Insurance Agents, Direct Operations, Title Attorneys, and Attorney’s Licensed as Escrow Officers pertaining to the Policy Guaranty Fee and Guaranty Assessment Recoupment Charge to provide that maintaining a policy guarantee fee escrow account and a guaranty assessment recoupment charge escrow account separate from the agent’s standard audited escrow account is optional.

Agenda Item #2006-23 DISAPPROVED
Filed by: Stewart Title Guaranty Company
Amends: The Owner Policy of Title Insurance Form T-1 based on the new 2006 American Land Title Association Owner’s Policy.

Agenda Item #2006-24 AS ADOPTED (WORD)
Agenda Item #2006-24 AS ADOPTED
Agenda Item #2006-24 AS AMENDED BY TLTA
Agenda Item #2006-24
Amendment Filed by: Texas Land Title Association
Amends: The submission by Stewart Title Guaranty Company to amend the Owner Policy of Title Insurance Form T-1 based on the new 2006 American Land Title Association Owner’s Policy.

Agenda Item #2006-25 DISAPPROVED
Filed by: Stewart Title Guaranty Company
Amends: The Mortgagee Policy of Title Insurance Form T-2 based on the new 2006 American Land Title Association Loan Policy.

Agenda Item #2006-26 AS ADOPTED (WORD)
Agenda Item #2006-26 AS ADOPTED
Agenda Item #2006-26 AS AMENDED BY TLTA
Agenda Item #2006-26 
Amendment Filed by: Texas Land Title Association 
Amends: The submission by Stewart Title Guaranty Company to amend the Mortgagee Policy of Title Insurance Form T-2 based on the new 2006 American Land Title Association Loan Policy.

Agenda Item #2006-27 AS ADOPTED (WORD)
Agenda Item #2006-27 AS ADOPTED
Agenda Item #2006-27 AS AMENDED BY TLTA
Agenda Item #2006-27
Filed by: Stewart Title Guaranty Company
Amends: Procedural Rule P-1 to make conforming changes based on the proposed amended Owner and
Mortgagee Policies.

Agenda Item #2006-28 DISAPPROVED
Filed by: Stewart Title Guaranty Company 
Amends: Procedural Rule, P-32 to clarify time periods for retention of documents and to conform this procedural rule to the provisions of UETA and E-SIGN.

Agenda Item #2006-29 AS ADOPTED (WORD)
Agenda Item #2006-29 AS ADOPTED
Agenda Item #2006-29 
Amendment Filed by: Texas Land Title Association
Amends: The submission by Stewart Title Guaranty Company to amend Procedural Rule, P-32 to clarify time periods for retention of documents and to conform this procedural rule to the provisions of UETA and E-SIGN.

Agenda Item #2006-30 AS ADOPTED (WORD)
Agenda Item #2006-30 AS ADOPTED
Agenda Item #2006-30 
Filed by: Stewart Title Guaranty Company
Amends:  Procedural Rule P-36 to conform with the proposed, amended Owner Policy and Mortgagee Policy
and to make other changes including increasing the threshold for arbitral matters to two million dollars and deleting the choice of law provision.

Agenda Item #2006-31 AS ADOPTED (WORD)
Agenda Item #2006-31 AS ADOPTED
Agenda Item #2006-31
Filed by: Stewart Title Guaranty Company
Amends: Procedural Rule P-37 to conform with the proposed, amended Owner Policy and Mortgagee Policy.

Agenda Item #2006-32 AS ADOPTED (WORD)
Agenda Item #2006-32 AS ADOPTED
Agenda Item #2006-32
Filed by: Stewart Title Guaranty Company
Amends: The Facultative Reinsurance Agreement Form T-18.1 based on changes contained in the new American Land Title Association’s Reinsurance Agreement and to clarify a reinsurer’s payment obligations.

Agenda Item #2006-33 AS ADOPTED (WORD)
Agenda Item #2006-33 AS ADOPTED
Agenda Item #2006-33
Filed by: Stewart Title Guaranty Company
Amends: The Restrictions, Encroachments, Minerals Endorsement T-19 to conform to the new American Land Title Association Endorsement 9.3-06, which may be issued with the proposed amended Mortgagee Policy
(T-2).

Agenda Item #2006-34 AS ADOPTED (WORD)
Agenda Item #2006-34 AS ADOPTED
Agenda Item #2006-34
Filed by: Stewart Title Guaranty Company
Amends: The Restrictions, Encroachments, Minerals Endorsement – Owner Policy T-19.1 to conform to the new American Land Title Association Endorsement 9.5-06, which may be issued with the proposed amended Owner Policy (T-1).

Agenda Item #2006-35 AS ADOPTED (WORD)
Agenda Item #2006-35 AS ADOPTED
Agenda Item #2006-35
Filed by: Stewart Title Guaranty Company
Amends: The Tertiary Facultative Reinsurance Agreement (Type I) Form T-21.1 to conform to the proposed amendments to the Facultative Reinsurance Agreement Form T-18.1.

Agenda Item #2006-36 AS ADOPTED (WORD)
Agenda Item #2006-36 AS ADOPTED
Agenda Item #2006-36
Filed by: Stewart Title Guaranty Company
Amends: The Tertiary Facultative Reinsurance Agreement (Type II) Form T-21.2 to conform to the proposed amendments to the Facultative Reinsurance Agreement Form T-18.1.

Agenda Item #2006-37 DISAPPROVED
Filed by: Sierra Title Group & Sierra Title Insurance Guaranty Company, Inc.
Amends: Administrative Rule L-1 to provide that, upon the filing of an application for a title insurance agent license, the Department must notify all currently licensed title insurance agents in the county in which the sponsoring title insurance company applicant is seeking approval and to provide that any currently licensed agent
may make a written request to the Department for an on-site audit of the applicant’s abstract plant facilities.

Agenda Item #2006-38 AS ADOPTED (WORD)
Agenda Item #2006-38 AS ADOPTED
Agenda Item #2006-38 AS AMENDED BY TLTA
Agenda Item #2006-38
Filed by: Texas Department of Insurance 
Adopts: A new Procedural Rule (P-___) to provide better auditing tools regarding Insured Closing and Settlement Letters and to ensure compliance with Texas Insurance Code Chapter 2702.
TLTA Position: OPPOSE

Agenda Item #2006-39 AS ADOPTED (WORD)
Agenda Item #2006-39 AS ADOPTED
Agenda Item #2006-39
Filed by: Texas Department of Insurance 
Adopts: A new Procedural Rule (P-___) to clarify that Texas Insurance Code §§ 521.101-521.103 applies to the title industry and to ensure title industry compliance with the statute.
TLTA Position: SUPPORT

Agenda Item #2006-40 AS ADOPTED (WORD)
Agenda Item #2006-40 AS ADOPTED
Agenda Item #2006-40 AS AMENDED BY TLTA
Agenda Item #2006-40
Filed by: Texas Department of Insurance 
Amends: Procedural Rule P-1, subparagraph f. to conform the definition of closing the transaction to the statutory definition of closing the transaction in Insurance Code, §2501.006.
TLTA Position: OPPOSE, as filed

Agenda Item #2006-41 AS AMENDED BY TLTA WITHDRAWN
Agenda Item #2006-41
Filed by: Texas Department of Insurance 
Amends: Procedural Rule P-22 to clarify the terms fee and payment, to clarify who may receive payment, to reduce administrative inefficiency associated with remittance, to prevent certain types of prohibited conduct, and to update references to revised Insurance Code provisions.
TLTA Position: OPPOSE, as filed

Agenda Item #2006-42 AS ADOPTED (WORD)
Agenda Item #2006-42 AS ADOPTED, COMBINED WITH 2006-17
Agenda Item #2006-42
Filed by: Texas Department of Insurance 
Amends: Procedural Rule P-53 to remove the sunset provision contained within the rule and to ensure that the rule will remain in effect beyond January 1, 2008.
TLTA Position: SUPPORT

Agenda Item #2006-43 AS ADOPTED
Agenda Item #2006-43
Filed by: Texas Department of Insurance 
Amends: Insuring Forms T-7, T-1, T-1R, T-2, T-2R, and T-44 to remove outdated language regarding the consumer complaint notice.
TLTA Position: SUPPORT, as long as existing forms can be used within a 6-month time frame after the effective date

Agenda Item #2006-44 AS ADOPTED (WORD)
Agenda Item #2006-44 AS ADOPTED IN PART
Agenda Item #2006-44 AS AMENDED BY TLTA
Agenda Item #2006-44
Filed by: Texas Department of Insurance 
Amends: The Minimum Standards, Specific Instructions and Report Forms for Audit of Trust Funds Required of Texas Title Insurance Agents, Direct Operations, Title Attorneys and Attorneys Licensed as Escrow Officers in Section V to clarify consumer charges and to make the language more precise in Specific Areas and Procedures, 5, while adding additional language to Minimum Escrow Account Procedures and Internal Controls, 18, to help identify fraudulent real estate transactions.
TLTA Position: OPPOSE as written, but work with TDI to amend

Agenda Item #2006-45 AS ADOPTED (WORD)
Agenda Item #2006-45 AS ADOPTED
Agenda Item #2006-45
Filed by: Texas Department of Insurance 
Amends: Administrative Rule L-1 to clarify that a title insurance agent may not commence business in a county until authorized by the Department.
TLTA Position: SUPPORT

Agenda Item #2006-46 AS ADOPTED (WORD)
Agenda Item #2006-46 AS ADOPTED
Agenda Item #2006-46
Filed by: Texas Department of Insurance 
Amends: Administrative Rule L-2 to require attorneys who are licensed escrow officers to close  the transaction in the title agent’s name, to require attorneys who are licensed escrow officers to use the title agent’s escrow account, and to require escrow officers to keep a current address on file with the Department.
TLTA Position: OPPOSE as written, but work with TDI to amend

Agenda Item #2006-47 AS ADOPTED (WORD)
Agenda Item #2006-47 AS ADOPTED
Agenda Item #2006-47
Filed by: Texas Department of Insurance 
Amends: Administrative Rule L-2 to clarify that a non-attorney employee of an attorney must be licensed as escrow officer prior to performing the duties of an escrow officer.
TLTA Position: SUPPORT

Agenda Item #2006-48 AS ADOPTED (WORD)
Agenda Item #2006-48 AS ADOPTED
Agenda Item #2006-48
Filed by: Texas Department of Insurance 
Amends: Administrative Rules L-1 and L-2 to ensure that the Title Agent and Escrow Officer licensing procedures are consistent with the Texas Business Organizations Code, which went into effect on January 1, 2006, and to simplify the merger, exchange, and conversion process when an organizational restructuring results in a less than 50% change in ownership.
TLTA Position: SUPPORT

Agenda Item #2006-49 AS ADOPTED (WORD)
Agenda Item #2006-49 AS ADOPTED
Agenda Item #2006-49
Filed by: Texas Department of Insurance 
Amends: Administrative Rule G-1 to clarify that Policy Guaranty Fees must be postmarked on or before the due date to be considered timely.
TLTA Position: SUPPORT

Agenda Item #2006-50 AS ADOPTED (WORD)
Agenda Item #2006-50 AS ADOPTED
Agenda Item #2006-50 AS AMENDED BY TLTA
Agenda Item #2006-50
Filed by: Texas Department of Insurance 
Amends: The Texas Title Insurance Statistical Plan.
TLTA Position: SUPPORT, but include rate agenda item #61 and delete Table 6

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