CA Land Title Association Sponsors SB 133
July 6, 2007
SACRAMENTO, Calif., The California Land Title Association (CLTA) is sponsoring SB 133 (Aanestad), legislation that would create a statewide licensing system for title insurance sales representatives. SB 133 passed the Assembly Insurance Committee by a vote of 9-0 earlier this week.
Under the provisions of SB 133, title insurance sales representatives would register with the California Department of Insurance. These sales reps would be subject to suspension by the Department in the event they participated in prohibited activities. In addition, SB 133 would require that the Department provide clarity through the regulatory process regarding reasonable marketing expenditures and activities. The bill will be heard next in the Assembly Appropriations Committee.
"The strict licensing requirements provided by SB 133 enhance consumer protection while maintaining the healthy competitive title insurance marketplace in California," said Craig Page, executive vice president of the California Land Title Association. "The CLTA acknowledged concerns regarding the interpretation and enforcement of laws regulating marketing practices in the title insurance industry. The CLTA sponsored legislation several years ago that enhanced penalties for violations of the title insurance law and has encouraged the Department of Insurance to issue rulings on specific marketing practices. The title industry supports more uniform and consistent enforcement of the laws and SB 133 makes progress in that direction," added Page.
Title insurance is used by homebuyers and lenders for protection against back taxes, undisclosed liens, legal judgments, forgeries, fraud and a host of other potential legal/financial problems that can arise when purchasing or refinancing property. Most of the title insurance premium goes towards identifying and eliminating these potential problems before the close of escrow. Consumers pay only once for title insurance -- there are no monthly premiums -- for coverage that lasts as long as they own the property.
Source: The California Land Title Association