Bulletin: IN000015

Date:
September 03, 2004
To:
All Issuing Offices in Indiana
RE:
New Title Insurance Licensing Requirements and Closer Responsibilities

Dear Associates:

New Indiana legislation (House Enrolled Act 1005) requires closing agents to provide individuals, who obtain a single-family residential purchase money or refinance loan, information on property tax deductions and the homestead credit on State Form 51781 (6-04) prescribed by the State of Indiana Department of Local Government Finance. [1] This requirement is effective as of January 1, 2005.  Closers may reproduce the form on gold or yellow paper.  A copy of the form is attached to this bulletin.  Closers will be required to document compliance by a verification of receipt form signed by the borrower. Agents may create their own compliance form.  A sample compliance form is attached hereto.  Failure to comply will result in a $25.00 fine per transaction levied by the State of Indiana . However, closers will not be liable for any other damages claimed by a customer because of a closing agent's failure to provide the appropriate document to the customer. 

House Enrolled Act 1005 also requires that anyone renewing their title insurance license after December 31, 2005 must complete at least fourteen (14) hours of credit in continuing education courses with at least four (4) hours relating to: ethics in marketing and selling title insurance; title insurance underwriting; escrow issues; and RESPA. [2] Beginning January 1, 2005, anyone applying for a title insurance license for the first time must take a pre-licensing course consisting of at least ten (10) hours relating to the above-described subject matters.[3] Attorneys licensed in good standing in Indiana who also hold a title insurance license may complete the required insurance continuing education requirements by completing the same number of hours in a continuing legal education course related to title insurance or real property law.[4] 

Additionally, House Enrolled Act 1005 provides that employees who quote title insurance rates at the request of a customer but do not discuss terms or conditions of a title insurance policy do not need to be licensed by the Department of Insurance.[5]

A complete copy of House Enrolled Act 1005 is available at www.in.gov/legislative/. Click on ?Bills and Resolutions?.



[1] I.C.6-1.1-12-43

[2] I.C. 27-1-15.7-2(b)

[3] I.C. 27-1-15-7.5(a)(2)(F)

[4] I.C. 27-1-15.7-2(b)

[5] I.C. 27-1-15.6-4(c)(9)

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None