SB 5629 — Creating and establishing the rights and duties for title insurance rating and advisory organizations.

S-1040.1SENATEENGROSSED SENATE BILL 5629State of Washington65th Legislature2017 Regular SessionBy Senators Angel and HobbsRead first time 02/01/17.

amending RCW 48.29.010, 48.29.147, 48.29.017, and 48.29.017;48.29.005;

and(4) A statement of its qualifications as a rating organization.NEW SECTION.  Sec. 6.  A new section is added to chapter 48.29 RCW to read as follows:(1) If the commissioner finds that the applicant for a license as a rating organization is competent, trustworthy, and otherwise qualified to act, and that its constitution, articles of agreement or association, certificate of incorporation, or trust agreement, and its bylaws, rules, and regulations governing the conduct of its business conform to the requirements of law, the commissioner shall, upon payment of a license fee of twenty-fivethe dollars,amount established by the commissioner pursuant to RCW 48.29.005, issue a license authorizing the applicant to act as a rating organization for title insurance.(2) The commissioner shall grant or deny in whole or in part every such application within sixty days of the date of its filing.(3) A license issued pursuant to this section remains in effect for three years unless sooner suspended or revoked by the commissioner.NEW SECTION.  Sec. 7.  A new section is added to chapter 48.29 RCW to read as follows:(1) The commissioner may, after a hearing, suspend or revoke the license issued to a rating organization for any of the following causes:(a) The commissioner finds that the licensee no longer meets the qualifications for the license.(b) The rating organization fails to comply with an order of the commissioner within the time limited by the order, or any extension thereof which the commissioner may grant.(2) The commissioner shall not so suspend or revoke a license for failure to comply with an order until the time prescribed by this code for an appeal from such order to the superior court has expired or if such appeal has been taken, until such order has been affirmed.(3) The commissioner may determine when a suspension or revocation of license is effective.

This notice ((shall)) must specify the respect in which the commissioner finds the filing fails to meet the requirements and ((shall)) must state that the filing does not become effective as proposed.(8)(a) Except as to filings made by a rating organization on behalf of its members or subscribers pursuant to this section, if a filing is not disapproved by the commissioner within the waiting period or any extension thereof, the filing becomes effective as proposed.(b) TheBefore the commissioner shallapproves nota approvefiling by a rating organization, the commissioner shall review all materials contained in the filing, including, as applicable, materials submitted by the rating organization, materials provided by the statistical reporting agent pursuant to RCW 48.29.017, as well as materials concerning any public hearings, market investigations, studies, or other information collected during the review, and determine that the filing complies with the requirements of this chapter.(c) Filings made by a rating organization on behalf of its members or subscribers pursuant to this section unlessmay thenot commissionerbecome reviewseffective, thenotwithstanding substanceexpiration of thea filingwaiting andperiod, issuesunless athe writtencommissioner decisionapproves approving the filingfilings andin summarizingaccordance howwith the(b) of this subsection.(9) A filing comportsmade withunder this chapter.section is exempt from RCW 48.02.120(3).

TheHowever, writtenthe decisionfiling mustand includeall asupporting summaryinformation ofaccompanying anyit is open to public hearings,inspection marketonly investigations,after studies,the filing becomes effective.(10) A title insurer or othertitle informationinsurance collectedagent duringshall not make or issue a title insurance contract or policy, or use or collect any premium on or after a date set by the review.(c)commissioner Filingsby maderule, which date shall not be any earlier than January 1, 2010, except in accordance with rates and rules filed with the commissioner as required by this section or as provided under section 3 of this act.(11) If at any time subsequent to the applicable review period provided for in subsection (6) of this section, the commissioner has reason to believe that a title insurer's or rating organizationorganization's onrates behalfdo not meet the requirements of itsRCW members48.29.143 or subscribersare pursuantotherwise contrary to thislaw, sectionor mayif notany becomeperson effective,having notwithstandingan expirationinterest ofin the rates makes a waitingwritten period,complaint unlessto the commissioner approvessetting forth specific and reasonable grounds for the filingscomplaint inand accordancerequests witha (b)hearing, or if any insurer or rating organization upon notice of thisthe subsection.(9)commissioner's ((Adisapproval of a filing made under this section isrequests exempta fromhearing, RCWthe 48.02.120(3).commissioner shall hold a hearing within thirty days and shall, in advance of it, give written notice of the hearing to all parties in interest.

However, the filing and all supporting information accompanying it is open to public inspection only after the filing becomes effective)) In order to protect title insurance companies' trade secrets and confidential information and to prevent unfair competition, the only information that may be open to public inspection related to a title insurance rate filing is aggregated information from a title insurance rating organization that cannot be used to identify an individual title insurance company.(10) A title insurer or title insurance agent shall not make or issue a title insurance contract or policy, or use or collect any premium on or after a date set by the commissioner by rule, which date shall not be any earlier than January 1, 2010, except in accordance with rates and rules filed with the commissioner as required by this section or as provided under section 3 of this act.(11) If at any time subsequent to the applicable review period provided for in subsection (6) of this section, the commissioner has reason to believe that a title insurer's or rating organization's rates do not meet the requirements of RCW 48.29.143 or are otherwise contrary to law, or if any person having an interest in the rates makes a written complaint to the commissioner setting forth specific and reasonable grounds for the complaint and requests a hearing, or if any insurer or rating organization upon notice of the commissioner's disapproval of a filing made under this section requests a hearing, the commissioner shall hold a hearing within thirty days and shall, in advance of it, give written notice of the hearing to all parties in interest.

All title insurance companies and title insurance agents must cooperate with the statistical reporting agent to verify the completeness, accuracy, and quality of the data that they submitted.(4) Within thirty days after completing its review of the information for quality and accuracy, the statistical reporting agent must file the information for each title insurance company and title insurance agent, individually and in the aggregate, with the commissioner with a copy of the aggregate data from such statistical reporting agent provided to each title insurer and title insurance agent.(5) The commissioner may adopt rules to implement and administer this section.(6) The statistical reporting agent may exchange aggregate information and experience data with title insurance companies and rating organizations in this state in accordance with section 18 of this act.---act.Sec. 23.  RCW END48.29.005 ---and 2008 c 110 s 9 are each amended to read as follows:The commissioner may adopt rules to implement and administer this chapter, including but not limited to:(1) Establishing the information to be included in the report required under RCW 48.29.015;(2) Establishing the information required for the filing of rates for title insurance under RCW 48.29.147;(3) Establishing standards which title insurance rate filings must satisfy under RCW 48.29.147;(4) Establishing a date, which date shall not be earlier than January 1, 2010, by which all title insurers selling policies in this state must file their rates with the commissioner under RCW 48.29.143 and 48.29.147 rather than under RCW 48.29.140 and refile any rates that were in effect prior to the date established by the commissioner;

((and))(5) Defining what things of value a title insurance insurer or title insurance agent is permitted to give to any person in a position to refer or influence the referral of title insurance business under RCW 48.29.210(2).

In adopting rules under this subsection, the commissioner shall work with representatives of the title insurance and real estate industries and consumer groups in developing the rules;(6) Establishing the fee for a license as a rating organization under section 5 of this act;(7) Establishing license requirements that an applicant for a license as a rating organization and a licensee must comply with;

and(8) Requiring a rating organization to periodically update the title insurance rates, manuals of rules and rates, rating plans, rate schedules, minimum rates, class rates, or rating rules, filed by the rating organization on behalf of its members or subscribers.--- END ---