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F I S C A L I M P A C T R E P O R T
SPONSOR Rodella
DATE TYPED 2/23/05
HB 731/aHBIC
SHORT TITLE Title Insurer Underwriting Standards
SB
ANALYST Wilson
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
NFI
Duplicates SB 376
Conflicts with HB 33
SOURCES OF INFORMATION
LFC Files
Responses Received From
Public Regulation Commission (PRC)
Regulation & Licensing Department (RLD)
SUMMARY
Synopsis of HBIC Amendment
The House Business and Industry Committee amendment adds that in a court action involving a
claim by a person insured against a title insurer, any damages awarded shall not exceed the pol-
icy limits. The court may award the insured person reasonable attorney fees and the costs of liti-
gation if the title insurance company denied the claim and the court finds that the matter of the
claim should have been covered by the title insurance policy.
Synopsis of Original Bill
House Bill 731 makes a title insurer liable for any errors its employees may make in the process
of searching a title insurance policy.
Significant Issues
The PRC states this bill does not significantly change the existing statute but merely tries to ex-
plain more clearly that the consumer can only seek damages from the title insurance company
for any errors resulting from the title company’s search.