Title Insurance Agent Model Act and Title Insurer Model Act

In an effort to minimize losses to consumers arising out of defalcations and other improper acts by title insurance agents and closing agents the Minnesota Department of Commerce has floated the concept of adopting the NAIC Model Title Insurer Act and the Model Title Insurance Agent Act or suitable alternatives. The MLTA Legislative Committee has formed a subcommittee to examine the issue further. It will work closely with the DOC in attempting to develop appropriate modifications or acceptable alternatives to address some of the concerns about the industry.

Potential minimum capitalization and bonding requirements and additional scrutiny in the form of some kind of additional auditing are a likely result and may pose a concern, especially to small agents. If you would like to be an active participant on the subcommittee, please contact Marty Henschel, MLTA’s Legislative Committee Chair at (952) 928-5475 or MartyHenschel@edinarealty.com.

The State of Minnesota Department of Commerce sent the following Acts to MLTA for it to review:

Title Insurance Agent Model Act 10-03 from MN
Title Insurer Model Act 10-04 from MN

Click here for a list of all the bills MLTA followed in 2010.