Reports of Violations by Foreign Title Insurers and Nonresident Title Insurance Producers

COMMISSIONER OF SECURITIES & INSURANCE MONICA J. LINDEEN COMMISSIONER [LOGO] OFFICE OF THE MONTANA STATE AUDITOR # ADVISORY MEMORANDUM TO: ALL FOREIGN TITLE INSURERS AND NONRESIDENT TITLE INSURANCE PRODUCERS FROM: MONICA J. LINDEEN – COMMISSIONER OF SECURITIES AND INSURANCE, MONTANA STATE AUDITOR DATE: FEBRUARY 27, 2014 Monica J. Lindeen # REPORTS OF VIOLATIONS BY FOREIGN TITLE INSURERS AND NONRESIDENT TITLE INSURANCE PRODUCERS The Office of the Commissioner of Securities and Insurance, Montana State Auditor (CSI), has received reports that certain foreign title insurance companies and nonresident title insurance producers may have committed violations of the Montana Insurance Code, Mont. Code Ann. § 33-1-101, et seq. (Code). These reported violations include allegations of unlicensed activity, rate violations, failure to pay premium tax on policies written in Montana, and failure to conduct reasonable searches according to underwriting standards and standards of insurability set forth in § 33-25-214 and ARM 6.6.2201. The CSI will determine what constitutes a failure to conduct a reasonable search on a case by case basis. Please be advised that all foreign insurers, nonresident producer agencies, and nonresident producers transacting title insurance in Montana must be licensed by the CSI. Additionally, all producers must be appointed by insurers, premium taxes must be paid on title policies written in Montana, and title insurers doing business in Montana must file rates pursuant to Mont. Code Ann. § 33-25-212. Failure to comply with the foregoing or any other provision of the Code will result in the CSI taking the necessary regulatory action which may include discipline regarding licensure, and the imposition of fines, or both. If you have any questions about this advisory memorandum, please contact the CSI Legal Services Bureau at (406) 444-2040. Phone: 1-800-332-6148 / (406) 444-2040 / Main Fax: (406) 444-3497 comply with the foregoing or any other provision of the Code will result in the CSI taking the necessary regulatory action which may include discipline regarding licensure, and the imposition of fines, or both. If you have any questions about this advisory memorandum, please contact the CSI Legal Services Bureau at (406) 444-2040. Phone: 1-800-332-6148 / (406) 444-2040 / Main Fax: (406) 444-3497 Securities Fax: (406) 444-5558 / PHS Fax: (406) 444-1980 / Legal Fax: (406) 444-3499 840 Helena Ave., Helena MT 59601 Website: www.csi.mt.gov E-Mail: csi@mt.gov