Md. Code Regs. 31.04.22.06

Current through Register Vol. 51, No. 22, November 1, 2024

Section 31.04.22.06 - Report

A. A title insurer shall prepare a written report setting forth the results of its annual review, which shall be made available to the Commissioner upon request.

B. A title insurer shall file a report with the Commissioner within 45 calendar days after the completion of the review if the title insurer has reasonable cause to believe that the title insurance producer or agency at any time engaged in any of the prohibited activities set forth in Insurance Article, § 10-126, Annotated Code of Maryland. The report shall be submitted regardless of whether the prohibited activities ceased or were remedied prior to, during the course of, or as a result of the review. The report shall be in writing on a form specified by the Commissioner and submitted by electronic means directed by the Commissioner.

C. The report shall address the following areas:

(1) If applicable, a detailed description of the basis for the reasonable cause to believe that the title insurance producer or agency engaged in any of the prohibited activities set forth in Insurance Article, § 10-126, Annotated Code of Maryland;

(2) The name, Maryland producer license number, and contact information of the principal agent or any insurance producer designated pursuant to Insurance Article, § 10-106, Annotated Code of Maryland;

(3) The name and Maryland producer license number of any insurance producer associated with the principal agent, including the name and license number or numbers of any TIPICs utilized by the agency and confirmation that they are appointed with the insurer;

(4) The file number and property address for each file that was reviewed;

(5) The principal agent's escrow accounts and related practices, including a review to ensure that:

(a) Only licensed insurance producers exercise control over trust money;

(b) Premium monies are held in compliance with COMAR 31.03.03;

(c) Funds received by the principal agent are accurately accounted for in the books and records of the principal agent; and

(d) The principal agent's escrow accounts have been properly reconciled as of the date of the completed review and the trust deposits held on its behalf are reasonably ascertainable from the books of account and records of the principal agent;

(6) The report shall indicate if there are or have been any escrow or account shortages at any time during the review period;

(7) Except for transfers of money between the principal agent's escrow or trust account and the principal agent's operating account for the fees due the principal agent, transfers of money between principal agent's accounts that contain or have contained trust money deposits;

(8) Discrepancies between receipts and disbursements, and, if discrepancies are found, a description of the discrepancies in detail and whether the title producer or lender prepared the closing disclosure or HUD-1;

(9) Compliance by the principal agent with the annual MAHT report requirement under COMAR 31.16.03.06;

(10) Information relating to escrow accounts or settlement, closing, or title indemnification conducted by a principal agent, or title insurance producer acting on behalf of the title insurer;

(11) The principal agent's policy blank inventory;

(12) The principal agent's failure to comply with the title insurer's financial accounting requirements; and

(13) Any additional information requested by the Commissioner.

D. A title insurer is not precluded from providing a more comprehensive description of the review.

E. The report shall contain:

(1)The certification from the principal agent required under Regulation .04B(7) of this chapter; and

(2) A copy of the express written consent required under Regulation .04B(5)(c) of this chapter, if premium monies are comingled with the principal agent's personal funds.

Md. Code Regs. 31.04.22.06

Regulations .06 adopted effective 41:20 Md. R. 1114, eff.12/1/2014; amended effective 50:16 Md. R. 729, eff. 8/21/2023