(1) An individual title insurance producer or agency title insurance producer shall be licensed in accordance with this chapter, with the additional requirements listed in this section. (2) (a) A person that receives a new license under this title as an agency title insurance producer shall at the time of licensure be owned or managed by at least one individual who is licensed for at least three of the five years immediately before the day on which the agency title insurance producer applies for a license with both: (i) a title examination line of authority; and (ii) an escrow line of authority. (b) An agency title insurance producer subject to Subsection (2)(a) may comply with Subsection (2)(a) by having the agency title insurance producer owned or managed by: (i) one or more individuals who are licensed with the title examination line of authority for the time period provided in Subsection (2)(a); and (ii) one or more individuals who are licensed with the escrow line of authority for the time period provided in Subsection (2)(a). (c) A person licensed as an agency title insurance producer shall at all times during the term of licensure be owned or managed by at least one individual who is licensed for at least three years within the preceding five-year period with both: (i) a title examination line of authority; and (ii) an escrow line of authority. (d) The Title and Escrow Commission may by rule, subject to Section 31A-2-404, exempt an attorney with real estate experience from the experience requirements in Subsection (2)(a). (e) (i) An individual who satisfies the requirements of this Subsection (2) is known as a "qualifying licensee." (ii) At any given time, an individual may be a qualifying licensee for not more than two agency title insurance producers. (3) (a) An individual title insurance producer or agency title insurance producer that an insurer appoints shall maintain: (i) (A) a fidelity bond that covers loss of third party funds that the producer holds and covers theft of funds by an owner of the producer; or (B) a crime insurance policy that covers loss of third party funds that the producer holds and covers theft of funds by an owner of the producer; and (ii) a professional liability insurance policy. (b) The insurance required by this Subsection (3): (i) shall be supplied under a contract the commissioner approves to provide protection against the improper performance of a service, including escrow service, in conjunction with the issuance of a contract or policy of title insurance; and (ii) be in a face amount no less than $500,000. (c) The Title and Escrow Commission may by rule, subject to Section 31A-2-404, exempt individual title insurance producer or agency title insurance producers from the requirements of this Subsection (3) upon a finding that, and only if, the required insurance is generally unavailable at reasonable rates. (4) An individual title insurance producer or agency title insurance producer appointed by an insurer may maintain a reserve fund to the extent money was deposited before July 1, 2008, and not withdrawn to the income of the individual title insurance producer or agency title insurance producer. (5) An examination for licensure shall include questions regarding the examination of title to real property. (6) An individual title insurance producer may not perform the functions of escrow unless the individual title insurance producer has been examined on the fiduciary duties and procedures involved in those functions. (7) The Title and Escrow Commission may adopt rules, establishing an examination for a license that will satisfy this section, subject to Section 31A-2-404, and after consulting with the commissioner's test administrator. (8) A license may be issued to an individual title insurance producer or agency title insurance producer who has qualified: (a) to perform only examinations of title as specified in Subsection (5); (b) to handle only escrow arrangements as specified in Subsection (6); or (c) to act as a title marketing representative. (9) (a) A person licensed to practice law in Utah is exempt from the requirements of Subsections (3) and (4) if that person issues 12 or less policies in any 12-month period. (b) In determining the number of policies issued by a person licensed to practice law in Utah for purposes of Subsection (9)(a), if the person licensed to practice law in Utah issues a policy to more than one party to the same closing, the person is considered to have issued only one policy. (10) A person licensed to practice law in Utah, whether exempt under Subsection (9) or not, shall maintain a trust account separate from a law firm trust account for all title and real estate escrow transactions. (11) (a) The commissioner may, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, take an action described in Subsection (11)(b) against a title insurance producer if the title insurance producer: (i) (A) conducts title insurance business without an appointment from a title insurer; or (B) has not had an appointment for a period of more than 28 consecutive days from a title insurer as described in Section 31A-23a-115. (b) If the commissioner makes a finding under Subsection (11)(a), the commissioner may: (i) suspend or revoke the title insurance producer's license; (ii) freeze a bank account associated with the title insurance producer's business; (iii) subpoena the title insurance producer's records; (iv) enjoin the title producer's business operations; or (v) post, at the title producer's business location, a notice of an action listed in Subsections (11) (b)(i) through (iv). (12) (a) If an agency title insurance producer becomes aware of facts that support a reasonable belief that an electronic wire funds transfer related to a real estate or title insurance transaction did not reach the intended recipient of the electronic wire funds transfer within two business days after the day on which the transfer occurs, the agency title insurance producer shall report the facts to: (i) the commissioner; and (ii) each insurer with whom the producer has an appointment. (b) An agency title insurance producer shall make a report described in Subsection (12)(a) no later than seven business days after the day on which the agency title insurance producer became aware of the facts that initiated the report. (c) A report described in Subsection (12)(a) is not required if the electronic funds transfer is successfully sent to, and received by, the intended recipient within one business day after the agency title insurance producer becomes aware of the facts described in Subsection (12)(a). (d) The requirement described in Subsection (12)(a) applies if: (i) the agency title insurance producer initiated the transfer; or (ii) the agency title insurance producer was the intended recipient of the transfer. (e) (i) Except as provided in Subsection (12)(e)(ii), an agency title insurance producer is immune from civil action, civil penalty, or damages, if the producer makes a good faith report under this Subsection (12). (ii) Subsection (12)(e)(i) does not apply in an action that the department commences against a producer for the violation of this title. (f) The identity of an agency title insurance producer that makes a report under Subsection (12) (a)(i) is a protected record under Title 63G, Chapter 2, Government Records Access and Management Act. (13) (a) A title insurer shall report to the commissioner the termination of an appointment of a title insurance producer within seven days after the day on which termination occurs. (b) A title insurance producer shall report to the commissioner a title insurer's termination of the title insurance producer's appointment within seven days after the day on which termination occurs. (c) The requirements of this Subsection (13) are in addition to the requirements of Section 31A-23a-115.
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