§ 23-103-407 — Agency contracts

(a) (1) A person acting in the capacity of a title insurance agency shall not place business with a title insurer, and a title insurer shall not accept business from a title insurance agency unless a written contract exists between the title insurer and title insurance agency. (2) The written contract shall establish the responsibilities of the title insurer and title insurance agency and specify the division of the responsibilities if both share responsibility for a particular function. (3) The written contract shall also contain: (A) The types of risks that may be undertaken; (B) The maximum authority or limits of liability; (C) The territorial limitations; (D) All terms of compensation for the title insurance agency; (E) Policies and funds remittance; (F) Termination provisions; (G) (i) The date by which all funds and policies due under the contract shall be accounted for to the title insurer. (ii) The date shall be no later than sixty (60) days after: (a) Issuance of the policy; (b) The satisfaction of all requirements and conditions of any report; or (c) The time specified in the contract if less than sixty (60) days; and (H) The time in which the title insurance agency has to report and forward to the title insurer all claims filed in writing with the title insurance agency by policyholders or other claimants. (b) The contract shall not be assigned in whole or in part by the title insurance agency unless as part of a sale of a title insurance agency or its assets and approved in writing by the title insurer. (c) (1) The title insurer may terminate the contract upon written notice to the title insurance agency under any of the following circumstances: (A) Fraud, insolvency, appointment of a receiver or conservator, bankruptcy, cancellation of the title insurance agency's license or permit to do business, or the commencement of legal proceedings by the state of the domicile of the title insurance agency, which if successful would lead to the cancellation of the title insurance agency's permit or license to do business; (B) Material breach of any provision of the contract between the title insurer and the title insurance agency; or (C) In accordance with any other termination provision of the contract. (2) Upon the effective date as set forth in the notice of termination from a title insurer unless otherwise agreed to in writing by the title insurer, the title insurance agency shall immediately discontinue all title insurance business on behalf of that title insurer. (3) This subsection does not relieve the title insurance agency or the title insurer of any other contractual obligation.

Legislative History

Acts 2007, No. 684, § 6; 2009, No. 1190, § 5.