§ 2501.003 — DEFINITIONS.

Texas § 2501.003

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 2501.003. DEFINITIONS. In this title:
(1) "Abstract plant" means an abstract plant as defined by the department under Section 2501.004 .
(2) "Attorney" means:
(A) a person who is licensed to practice law and is a member of the State Bar of Texas; or
(B) a Texas professional corporation organized to provide professional legal services.
(3) "Direct operation" means the operations of a title insurance company under a license issued to the company under Subchapter B , Chapter 2651 . A reference in this title to a title insurance agent shall be construed to include a direct operation unless the context indicates otherwise.
(4) "Escrow officer" means an attorney, a bona fide employee of an attorney licensed as an escrow officer, a bona fide employee of a direct operation, or a bona fide employee of a title insurance agent whose responsibilities include:
(A) countersigning title insurance forms;
(B) supervising the preparation and delivery of title insurance forms;
(C) signing escrow checks; or
(D) closing the transaction, as described by Section 2501.006 .
(5) "Foreign title insurance company" means a title insurance company organized under the laws of a jurisdiction other than this state.
(6) "Joint abstract plant operation" means a joint abstract plant operation as defined by the department under Section 2501.004 .
(7) "Person" includes an individual, corporation, association, partnership, or trust.
(8) "Premium" means the premium rates promulgated by the commissioner under Subchapters D and E, Chapter 2703 , and includes a charge for:
(A) title examination and closing the transaction, regardless of whether the examination or closing is performed by an attorney; and
(B) issuing the policy.
(9) "Residential real property" means real property that is improved and is designed principally for occupancy by one to four families. The term includes an individual unit of a condominium or cooperative.
(10) "Thing of value" includes any payment, advance, funds, loan, service, or other consideration.
(11) "Title examination" means the search and examination of a title to determine the conditions of the title to be insured and to evaluate the risk to be undertaken in the issuance of a title insurance policy or other title insurance form.
(12) "Title insurance" means:
(A) insurance that insures, guarantees, or indemnifies an owner of real property, or another interested in the real property, against loss or damage resulting from:
(i) a lien or encumbrance on or defect in the title to the real property; or
(ii) the invalidity or impairment of a lien on the real property;
(B) personal property title insurance, as defined by Chapter 2751 ; or
(C) any business that is substantially equivalent to the insurance described by Paragraphs (A) and (B) and is conducted in a manner designed to evade the provisions of this title.
(13) "Title insurance agent" means a person owning or leasing and controlling an abstract plant or as a participant in a bona fide joint abstract plant operation and authorized in writing by a title insurance company to solicit insurance and collect premiums and to issue or countersign policies on the company's behalf.
(14) "Title insurance company" means:
(A) a domestic company organized under this title to engage in the business of title insurance, as described by Section 2501.005 ;
(B) a foreign title insurance company that:
(i) meets the requirements of this title; and
(ii) holds a certificate of authority to engage in business in this state; or
(C) any other domestic or foreign company that:
(i) meets the requirements of this title; and
(ii) holds a certificate of authority to insure a title to real property in this state.

Legislative History

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005. Amended by: Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153 ), Sec. 3, eff. September 1, 2007.