Licensing of title agents, title insurers and escrow officers; maintenance and examination of records; separation of money held in escrow.
1. The Commissioner shall provide by regulation for the licensing of title agents, their branch offices, direct writing title insurers and escrow officers.
2. Each title agent shall maintain his books of account and record and his vouchers pertaining to title insurance business in a manner which permits the Commissioner or his representative to ascertain readily whether the agent has complied with the provisions of this chapter.
3. A title agent or escrow officer may engage in the business of handling escrows, settlements and closings if he maintains a separate record of all receipts and disbursements of money held in escrow and does not commingle that money with his own.
4. For the purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with law, the Commissioner or his representative or the Commissioner of Financial Institutions of the Department of Business and Industry or his representative when requested by the Commissioner of Insurance shall each year examine or cause to be examined the affairs, transactions, agreements, assets, records and accounts, including the escrow accounts, of a title agent, title insurer or escrow officer.
5. A title agent or insurer may engage a certified public accountant to perform such an examination in lieu of the Commissioner. In such a case, the examination must be equivalent to the type of examination made by the Commissioner and the expense must be borne by the title agent or insurer being examined.
6. The Commissioner shall determine whether an examination performed by an accountant pursuant to subsection 5 is equivalent to an examination conducted by him. The Commissioner may examine any area of the operation of a title agent or insurer if the Commissioner determines that the examination of that area is not equivalent to an examination conducted by him.
7. A person shall not become licensed to circumvent the provisions of this chapter or any other law of this state.
Last modified: February 27, 2006