Senate Bill 86 - Title Insurance

BULLETIN 09-14 To: All Title Insurers and Producers RE: Senate Bill 86 Date: June 1, 2009 * * * * * * * * * * * * * * The purpose of this Bulletin is to remind all title insurers and producers of the enactment of Senate Bill 86, which becomes effective on June 1, 2009, with the exception of Section 2 which becomes effective on October 1, 2009, and to provide guidance on the manner in which this legislation is to be implemented. This bill amends Section 10-121 of the Insurance Article. The language added by Senate Bill 86 to Section 10-121 (a)(1), (2) and (3) of the Maryland Insurance Article requires that: (A)(1) In this subsection, “Trust Money” means a deposit, payment, or other money that a person entrusts to a licensed title insurance producer in connection with the provision of escrow, closing, or real estate settlement services. (2) Except as provided in paragraph (3) of this subsection, only a licensed title insurance producer may exercise control over trust money. (3) This subsection does not apply to trust money that is entrusted to: (I) A law firm as defined in Section 10-125 of this subtitle; (II) A title insurer. Persons who “may exercise control over trust money” would include, but is not limited to, all individuals with signature authority on a trust or escrow account; individuals who can approve and/or release wire transfers from a trust or escrow account and individuals who have day-to-day control of disbursements from a trust or escrow account. RALPH S. TYLER Commissioner BETH SAMMIS Deputy Commissioner MARTIN O’MALLEY Governor ANTHONY G. BROWN Lt. Governor 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202-2272 Direct Dial: 410-468-2354 Fax: 410-468-2245 Email: darnold@mdinsurance.state.md.us 1-800-492-6116 TTY: 1-800-735-2258 www.mdinsurance.state.md.us