March 4, 2020
In This Issue:
- 2020 Primary Elections Update
- TDI Quarterly Audit Results Published
- Underwriters: Annual Statements Can Now Be Emailed to TDI
- Supreme Court Looks Likely to Weaken Consumer Financial Protection Bureau But Leave it Standing
- Deadline to Take the CFPB’s TRID Survey Friday, March 6
2020 Primary Elections Update
TLTA | March 4, 2020
Texas held primary elections yesterday. While some results are not official yet, we have enough information to measure generally what the landscape will look like as we head into primary run-offs and begin the long march to November's general election.
The Republican and Democratic primaries each saw at least 1 million Texans vote early, and it's possible that when combined with what appears to be high election day turn-out, this year's primary elections could be the first time in state history that at least 2 million Texans voted in each primary.
Based on the results we've seen to-date, there are no major surprises that impact our industry, although several incumbent Texas Legislators will need to compete in run-off elections in April to secure their parties' nominations. We are monitoring those contests closely.
Additionally, there are two open Texas House seats (i.e., seats not held by incumbents) that were all but decided yesterday, as the winners of these primary contests face no general election challenger in November:
- HD 10 (Ellis County): Jake Ellzey won the three-way Republican primary with 65% of the vote
- HD 76 (El Paso County): Claudia Ordaz Perez won the Democratic primary with 56% of the vote
We are pleased to note that Texas House Insurance Committee Chair Rep. Eddie Lucio III won a contested primary last night with 54 percent of the vote. Chairman Lucio's continued support for our industry's health and success is a testament to his leadership and our industry's good work on behalf of Texas consumers.
Again, not all election returns are official yet, so primary election analysis and data should be treated as tentative until all results are officially announced in the coming days.
We will continue to provided updates and reports as election season proceeds. If you have questions about the impact of the primary elections on our industry's legislative priorities, please contact Aaron Day via firstname.lastname@example.org
TDI Quarterly Audit Results Published
Texas Department of Insurance | Feb. 25, 2020
The following is a summary of recent TDI audits, violations and enforcement actions from September through November 2019. Read TDI's complete summary of operations for the quarter, or read the key statistics below.
TDI's goal is to comprehensively audit agencies at least once every two years. This quarter, TDI conducted 44 audits.
This quarter, TDI signed 0 Commissioner Orders. As of this report, 43 cases remain active and under investigation.
Compliance Audit Results:
Below are TDI's most common audit findings for the quarter that ended in November. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred:
Number of Agencies
Texas Insurance Code
Section 2702.053 - Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed
Minimum Escrow Accounting Procedures and Internal Controls
#16 - Every disbursement not supported by invoice or sufficient other evidence
Outstanding checks not cleared timely
P-73: Failure to prepare/maintain form T-64 (TD) when CD used.
Read More »
P-21: Schedule D of commitment not in file or premium split not disclosed on the commitment
Underwriters: Annual Statements Can Now Be Emailed to TDI
Texas Department of Insurance | Feb. 28, 2020
Underwriters, you can now file 2019 annual statements and all other filings required by 28 TAC 7.68
by email to email@example.com
Texas domestic insurers
The filing should be submitted with separate attachments for the financial statements and each of the supplemental documents.
The filing should be submitted with separate attachments for the signed jurat page and each of the supplemental documents.
Put your company name in the subject line. Each email should only contain information for one entity. Limit each email to 25MB in size. For larger filings, you can send zipped files or multiple emails as needed. We'll send you a confirmation email after we receive your filing.
Underwriters also may continue to mail filings to TDI.
Supreme Court Looks Likely to Weaken Consumer Financial Protection Bureau But Leave it Standing
CNBC | March 3, 2020
The Supreme Court looked likely to weaken the Consumer Financial Protection Bureau, but leave it standing, as the justices heard oral arguments Tuesday in a major business regulation case.
The case concerned whether the regulatory agency established in the wake of the 2008 financial crisis was structured unconstitutionally by giving too much power to its director.
Under the legislation that established the bureau, the head of the CFPB, who serves a five-year term, may only be removed by the president for “inefficiency, neglect of duty, or malfeasance in office.”
The justices sparred on Tuesday over whether that removal provision placed an unconstitutional burden on the president’s ability to exercise his executive power and, if so, whether the provision could be severed from the rest of the legislation while leaving the CFPB otherwise in place. A decision is expected by the end of June.
The top court upheld a similar for-cause removal standard for members of the FTC in the 1935 case Humphrey’s Executor v. United States and for independent counsels in the 1988 case Morrison v. Olson.
Read More »
Deadline to Take the CFPB’s TRID Survey Friday, March 6
TLTA | March 3, 2020
The Consumer Financial Protection Bureau (CFPB) is assessing the effectiveness of TILA-RESPA Integrated Disclosure Rule (TRID Rule), and they've asked companies that conduct closings covered by this regulation to complete a survey.
It's important for as many title agents as possible to take the survey. More robust data helps the industry advocate for desired changes to fix the title fee disclosure and remove the optional tag for owner's title insurance.
Deadline to take the survey is Friday, March 6, 2020
Learn More »
Take the Survey Online »
Complete a Paper Survey »
It’s a big month for TLTA's educational webinars – check out our line-up of four webinars in March!
Please note that the March 24 webinar “Survey Endorsements” starts our 2-part series on this topic, followed up by the April 7 webinar, “Minerals: The Law, The Exception, and T-19 Series Coverage.” Register for one or both and get educated on this complex topic!
And don’t forget, in addition to our monthly live webinars, you have access to our library of more than 80 On-Demand webinars and videos covering the title industry topics you need to earn continuing education credits and stay ahead of the curve on the latest industry trends!