31A-41 - Title Insurance Recovery, Education, and Research Fund Act
Title 31A > 31A-41
Sections (12)
General Provisions
31A-41-101 - Title.
This chapter is known as the “Title Insurance Recovery, Education, and Research Fund Act.”
Enacted by Chapter 220, 2008 General Session
31A-41-102 - Definitions.
As used in this chapter:
(1) “Commission” means the Title and Escrow Commission created in Section 31A-2-403.
(2) “Fund” means the Title Insurance Recovery, Education, and Research Fund created in Section 31A-41-201.
(3) “Title insurance licensee” means: an agency title insurance producer; oran individual title insurance producer.
Amended by Chapter 319, 2013 General Session
31A-41-103 - Authority to take disciplinary action not limited.
(1) This chapter does not limit the authority of the commissioner or the commission to take disciplinary action against a title insurance licensee for a violation of this title or rules made by the department or commission under this title.
(2) The repayment in full of obligations to the fund by a title insurance licensee does not nullify or modify the effect of another disciplinary proceeding brought pursuant to this title or rules and regulations made by the department or commission under this title.
Enacted by Chapter 220, 2008 General Session
Creation of Fund
31A-41-201 - Creation of Title Insurance Recovery, Education, and Research Fund.
(1) There is created an expendable special revenue fund to be known as the “Title Insurance Recovery, Education, and Research Fund.”
(2) The fund shall consist of: assessments on individual title insurance producers and agency title insurance producers made under this chapter;amounts collected under Section 31A-41-305; andinterest earned on the fund.
(3) Interest on fund money shall be deposited into the fund.
(4) The department shall administer the fund.
Amended by Chapter 319, 2013 General Session
31A-41-202 - Assessments.
(1) An agency title insurance producer licensed under this title shall pay an annual assessment determined by the commission by rule made in accordance with Section 31A-2-404, except that the annual assessment: may not exceed $1,000; andshall be determined on the basis of title insurance premium volume.
(2) An individual who applies for a license or renewal of a license as an individual title insurance producer, shall pay in addition to any other fee required by this title, an assessment not to exceed 20 in a fiscal year.
(3) To be licensed as an agency title insurance producer, a person shall pay to the department an assessment of 1,000; orsubject to Subsection (3)(b)(ii), 2% of the balance in the agency title insurance producer’s reserve account described in Subsection 31A-23a-204(3).The department may assess on an agency title insurance producer an amount less than 2% of the balance described in Subsection (3)(b)(i)(B) if: before issuing the assessments under this Subsection (3)(b) the department determines that the total of all assessments under Subsection (3)(b)(i) will exceed 1,000; andthe department reduces the assessment in a proportionate amount for agency title insurance producers assessed on the basis of the 2% of the balance described in Subsection (3)(b)(i)(B).An agency title insurance producer assessed under this Subsection (3)(b) shall pay the assessment by no later than August 1.
(4) The department may not assess a title insurance licensee an assessment for purposes of the fund if that assessment is not expressly provided for in this section.
Amended by Chapter 138, 2016 General Session
31A-41-203 - Use of money.
(1) Money in the fund may be used to pay claims made under Part 3, Claims on Fund.
(2) Except as limited by Subsection (2)(b), money in the fund in excess of $250,000 may be used by the commissioner, with the consent of the commission, to:investigate violations of this chapter related to fraud by a title insurance licensee;conduct education and research in the field of title insurance; orexamine a title insurance licensee’s: escrow and trust account;examination procedures; orcompliance with applicable statutes and rules.The commissioner may not use more than 75% of money collected under this chapter in a fiscal year from assessments and interest for the purposes outlined in this Subsection (2).
(3) The disclosure of an examination conducted under this section is governed by Section 31A-2-204.
Amended by Chapter 330, 2015 General Session
Claims on Fund
31A-41-301 - Procedure for making a claim against the fund.
(1) To recover from the fund, a person shall: obtain a final judgment against a title insurance licensee establishing that fraud, misrepresentation, or deceit by the licensee in a real estate transaction proximately caused economic harm to the person; andapply to the department to receive compensation for the economic harm from the fund.
(2) An application under Subsection (1)(b) shall establish all of the following: the applicant is not a spouse of the judgment debtor or the personal representative of the spouse;the applicant has obtained a final judgment in accordance with Subsections (1)(a) and (3);an amount is still owed on the judgment at the date of the application;the applicant has had a writ of execution issued under the judgment, and the officer executing the writ has returned showing that:no property subject to execution in satisfaction of the judgment could be found; orthe amount realized upon the execution levied against the property of the judgment debtor is insufficient to satisfy the judgment;the applicant has made reasonable searches and inquiries to ascertain whether the judgment debtor has any interest in property, real or personal, that may satisfy the judgment; andthe applicant has exercised reasonable diligence to secure payment of the judgment from the assets of the judgment debtor.
(3) A final judgment under Subsection (1)(a) does not include a default judgment entered against a title insurance licensee. If grounds exist for a default judgment against a title insurance licensee, the requirement of a final judgment may be satisfied by complying with Section 31A-41-302.A final judgment under Subsection (1)(a) does not include a judgment that is discharged in bankruptcy. If a bankruptcy proceeding is open or is commenced during the pendency of an application under Subsection (1)(b) before the department or the court, the applicant shall obtain an order from the bankruptcy court declaring the judgment and debt to be non-dischargeable.
(4) The department may hold a hearing on the application filed pursuant to Subsection (2). The hearing shall be an informal adjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act, with rights of appeal as provided in Title 63G, Chapter 4, Administrative Procedures Act.
Amended by Chapter 138, 2016 General Session
31A-41-302 - Department may defend action in which title insurance licensee does not appear or defend.
(1) In a lawsuit alleging that fraud, misrepresentation, or deceit by a title insurance licensee in a real estate transaction proximately caused economic harm, if grounds arise for the entry of a default judgment against the title insurance licensee, the plaintiff may petition the court to join the department as a defendant in the lawsuit.
(2) After being served, the department may appear, conduct discovery, and otherwise defend against any claim asserted against the title insurance licensee for which the fund may be liable under this part. A judgment under this Subsection (2) may not be issued against the department.
Repealed and Re-enacted by Chapter 138, 2016 General Session
31A-41-303 - Determination and amount of fund liability.
(1) Subject to the requirements of this part, if the department determines that a claim should be levied against the fund, the department shall enter an order that the fund pay that portion of the petitioner’s judgment that is eligible for payment from the fund.
(2) A payment from the fund may not compensate for punitive damages, attorney fees, interest, or court costs.
(3) Regardless of the number of claimants or parcels of real estate involved in a single transaction, the liability of the fund may not exceed: 50,000 for all transactions of a title insurance licensee.
Amended by Chapter 138, 2016 General Session
31A-41-304 - Insufficient funds to satisfy judgment.
If the money in the fund is insufficient to satisfy a claim ordered to be paid under Section 31A-41-303 , when sufficient money is in the fund, the department shall pay a person with an unpaid claim:
(1) in the order that petitions related to unpaid claims are originally served on the department; and
(2) an amount equal to the sum of: the unpaid claim; andinterest on the unpaid claim at a rate of 5% per annum from the date the court orders payment from the fund until the day on which the claim is paid.
Amended by Chapter 342, 2011 General Session
31A-41-305 - Department subrogated — Authority to revoke license.
(1) If the department makes payment from the fund, the department is subrogated to all the rights of the person who received money from the fund for the amounts paid out of the fund.Any amounts recovered by the department under the subrogated rights shall be deposited in the fund.
(2) The license of a title insurance licensee for whom payment from the fund is made under this chapter is automatically revoked.Before a title insurance licensee whose license is revoked under this section may apply for a new license under this title, the title insurance licensee shall pay to the department for deposit in the fund:the amounts paid by the fund because of an action brought against the title insurance licensee; andinterest at a rate determined by the commissioner with the concurrence of the commission.
Enacted by Chapter 220, 2008 General Session
31A-41-306 - Failure to comply constitutes a waiver.
The failure of a person to comply with this chapter constitutes a waiver of any right provided under this chapter.
Enacted by Chapter 220, 2008 General Session