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F I S C A L I M P A C T R E P O R T

SPONSOR Leavell

DATE TYPED 2/8/05

HB

SHORT TITLE Title Insurer Underwriting Standards

SB 376

ANALYST Wilson

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

Conflicts with HB 33

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

Senate Bill 376 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.

CONFLICT

SB 376 with HB 33, Restore Title Search Duty of Reasonable Care, which will make both the

title insurer and the insurance agent liable separately for a search error.

DW/sb