(a)  The title insurer shall not accept business from a title insurance agent unless there is in force a written contract between the parties that sets forth the responsibilities of each party and, where both parties share responsibility for a particular function, specifies the division of responsibilities.

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Terms Used In Rhode Island General Laws 27-2.6-13

  • agent: means an authorized person, other than a bona fide employee of the title insurer who, on behalf of the title insurer, performs the following acts, in conjunction with the issuance of a title insurance report or policy:

    (i)  Determines insurability and issues title insurance reports or policies, or both, based upon the performance or review of a search or abstract of title; and

    (ii)  Performs one or more of the following functions:

    (A)  Collects or disburses premiums, escrow or security deposits or other funds;

    (B)  Handles escrows, settlements or closings;

    (C)  Solicits or negotiates title insurance business; or

    (D)  Records closing documents. See Rhode Island General Laws 27-2.6-3

  • Commissioner: means the director of the department of business regulation, or his or her designee or the commissioner, director or superintendent of insurance in any other state. See Rhode Island General Laws 27-2.6-3
  • Contract: A legal written agreement that becomes binding when signed.
  • in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
  • insurer: means a company organized under laws of this state for the purpose of transacting the business of title insurance and any foreign or non-United States title insurer licensed in this state to transact the business of title insurance. See Rhode Island General Laws 27-2.6-3
  • policy: means a contract insuring or indemnifying owners of, or other persons lawfully interested in, real or personal property or any interest in real property, against loss or damage arising from any or all of the following conditions existing and not excepted or excluded:

    (i)  Defects in or liens or encumbrances on the insured title;

    (ii)  Unmarketability of the insured title;

    (iii)  Invalidity, lack of priority or unenforceability of liens or encumbrances on the stated property;

    (iv)  Lack of legal right of access to the land; or

    (v)  Unenforceability of rights in title to the land. See Rhode Island General Laws 27-2.6-3

  • Producer: means any person, including any officer, director or owner of five percent (5%) or more of the equity or capital of any person, engaged in this state in the trade, business, occupation or profession of:

    (i)  Buying or selling interests in real property;

    (ii)  Making loans secured by interests in real property; or

    (iii)  Acting as broker, agent, representative or attorney or a person who buys or sells any interest in real property or who lends or borrows money with the interest as security. See Rhode Island General Laws 27-2.6-3

  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.

(b)  The title insurer shall, on at least a biennial basis, conduct an on-site review of the underwriting, claims, and escrow practices of the agent that shall include a review of the agent’s policy blank inventory and processing operations.

(1)  If the title insurance producer is also an attorney, and asserts that any documents requested in connection with the review provided in subsection (b) are prohibited from disclosure by an ethical requirement, the producer shall identify in writing the particular document, the applicable privilege, and provide a redacted copy to the title insurer.

(c)  A domestic title insurer shall not appoint to its board of directors an officer, director, employee, or controlling shareholder or any title insurance agent who wrote one percent (1%) or more of the title insurer’s direct premiums written during the previous calendar year as shown on the tile insurer’s most recent annual statement on file with the commissioner. This subsection shall not apply to relationships governed by § 27-35-1 et seq.

(d)  The title insurer shall maintain an inventory of all policy forms or policy numbers allocated to each title insurance agent.

(e)  The title insurer shall have on file proof that the title insurance agent is licensed by this state.

(f)  The title insurer shall establish the underwriting guidelines and, where applicable, limitations on title claims settlement authority to be incorporated into contracts with its title insurance agents.

History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1; P.L. 2014, ch. 488, § 1; P.L. 2014, ch. 521, § 1.