As used in this article 11, unless the context otherwise
requires:
(1) Affiliate or subsidiary means a person who directly or indirectly,
through one or more intermediaries:
(a) Controls a title insurance agent or title insurance company;
(b) Is controlled by a title insurance company; or
(c) Is under common control with a title insurance agent or title insurance
company.
(1.3) Affiliated business arrangement means an arrangement in which:
(a) (I) A settlement producer or an associate of such producer has either an
affiliate relationship with, or a direct beneficial ownership interest of more than one
percent in, a title insurance company or title insurance agent; or
(II) A title insurance company or a title insurance agent who has either an
affiliate relationship with, or a direct beneficial ownership interest of more than one
percent in a settlement producer; and
(b) (I) Either the settlement producer or the agent of the settlement producer
directly or indirectly refers settlement service business to that title insurance
company or title insurance agent or affirmatively influences the selection of that
title insurance company or title insurance agent; or
(II) Either the title insurance company or the title insurance agent directly or
indirectly refers settlement services business to a settlement producer or associate
or affirmatively influences the selection of the settlement producer or associate.
(1.5) Alien title insurance company means a title insurance company
incorporated or organized under the laws of a foreign nation, or of any province or
territory thereof, not included under the definition of a foreign title insurance
company.
(2) Applicants for insurance includes all those, whether or not a
prospective insured, who from time to time apply to a title insurance company, or to
its agent, for title insurance and who at the time of such application are not agents
for a title insurance company.
(2.5) Associate means a person who has one or more of the following
relationships with a person in a position to refer settlement service business:
(a) A spouse, parent, or child of such person;
(b) A corporation or business entity that controls, is controlled by, or is under
common control with such person;
(c) An employer, officer, director, partner, franchiser, or franchisee of such
person; or
(d) Anyone who has an agreement, arrangement, or understanding with such
person, the purpose or substantial effect of which is to enable the person in a
position to refer settlement service business to benefit financially from referrals of
such business.
(3) The business of title insurance means the making or proposing to make,
as insurer, guarantor, or surety, of any contract or policy of title insurance; or the
transacting or proposing to transact, as insurer, guarantor, or surety, any phase of
title insurance, including solicitation, negotiation preliminary to execution,
execution of a contract of title insurance, and transacting matters subsequent to
the execution of the contract and arising out of it, including reinsurance, and the
performance of closing and settlement services by a title insurance company or
title insurance agent in conjunction with the issuance of any contract or policy of
title insurance.
(3.5) Closing and settlement services means providing services for the
benefit of all necessary parties in connection with the sale, leasing, encumbering,
mortgaging, creating a secured interest in and to real property, and the receipt and
disbursement of money in connection with any sale, lease, encumbrance, mortgage,
or deed of trust.
(3.6) Repealed.
(3.7) Gap coverage means insuring, guaranteeing, or indemnifying owners
of real property, or others interested therein, against loss or damage suffered by
reason of matters appearing of record in the office of the clerk and recorder
subsequent to the date of issuance of a title insurance commitment and prior to the
recording of closing documents for the real property concerned.
(3.9) Net admitted assets means the title insurance company's net
admitted assets as reported pursuant to section 10-3-208.
(4) Net retained liability means the total liability retained by a title
insurance company under any policy or contract of insurance, or under a single
insurance risk as defined in or computed in accordance with subsection (7) of this
section, after the purchase of reinsurance.
(5) Premium for title insurance is the amount charged by a title insurance
company, agent for a title insurance company, or either of them to an insured or an
applicant for insurance for the assumption by the title insurance company of the
risk created by the issuance of the title insurance policy, including the cost of doing
business and a reasonable profit, but excluding service charge, if any.
(6) Service charge is the amount charged by a title insurance company,
agent for a title insurance company, or either of them to an insured or an applicant
for insurance to cover the cost of procuring and examining evidence of title.
(6.5) (a) Settlement producer means a person who is in a position to refer
business that is incident to or a part of a settlement service. Settlement producer
includes, but is not limited to, a person who:
(I) Buys or sells an interest in real property;
(II) Lends or borrows moneys with an interest in real property as security;
(III) Acts as an agent, representative, attorney, or employee of a person who:
(A) Buys or sells an interest in real property; or
(B) Lends or borrows moneys with an interest in real estate as security;
(IV) Is an associate of a person described in this subsection (6.5).
(b) Nothing in this subsection (6.5) shall be construed to include a title
insurance company or a title insurance agent.
(6.7) Settlement service means any service provided in connection with a
real estate settlement. Settlement services include, but are not limited to, the
following:
(a) Title searches;
(b) Title examinations;
(c) The provision of title certificates;
(d) Title insurance;
(e) Services rendered by an attorney;
(f) The preparation of title documents;
(g) Property surveys;
(h) The rendering of credit reports or appraisals;
(i) Pest and fungus inspections;
(j) Services rendered by a real estate broker;
(k) Services rendered by a real estate appraiser;
(l) Home inspection services;
(m) The origination of a loan;
(n) The taking of a loan application;
(o) Processing of a loan;
(p) Underwriting and funding of a loan;
(q) Escrow handling services;
(r) The handling of the processing; and
(s) Closing of settlement.
(7) Single insurance risk means the insured amount of any policy or
contract of title insurance issued by a title insurance company unless two or more
policies or contracts are simultaneously issued on different estates in identical real
property, in which event, it means the sum of the insured amounts of all such
policies or contracts. Any such policy or contract that insures a mortgage interest
that is excepted in a fee or leasehold policy or contract, and which does not exceed
the insured amount of such fee or leasehold policy or contract, shall be excluded in
computing the amount of a single insurance risk.
(8) Title insurance means insuring, guaranteeing, or indemnifying owners
of real property or others interested therein against loss or damage suffered by
reason of liens or encumbrances upon, defects in, or the unmarketability of the title
to said property.
(8.5) Title insurance agency means a corporation, partnership, foreign
entity, or domestic entity as those terms are defined in section 7-90-102, or
association or other legal entity that transacts the business of title insurance.
(9) Title insurance agent means a person authorized by a title insurance
company to solicit insurance or to collect premiums or to issue or countersign
policies in its behalf.
(10) Title insurance company means any domestic company organized
under the provisions of this article for the purpose of insuring titles to real property;
any title insurance company organized under the laws of another state or foreign
nation and licensed to insure titles to real estate within this state; and any
domestic, foreign, or alien company having the power and authorized to insure titles
to real estate within this state on or before July 1, 1969, and which meets the
requirements of this article.
(11) Title insurance entity means a title insurance agent, title insurance
agency, or title insurance company.