1. Title Insurance: Current Issues & Examination Best Practices
Kent Dover, Sean Betta and Marc Springer
Risk & Regulatory Consulting
Please use this as the opening slide of your presentation.

2. Overview - Introduction
Current State of Title Insurance
Best Practices – Examining a Title Insurer
Claims
Rates
Forms
Inducements
Compensation / Commissions
Indirect Inducements
Underwriting
ALTA Surveys
Challenges Facing Both the Industry and Regulators
Please use these for slides that will use headers and/or sub headers.

3. I. Current State of Title Insurance
2018 & 2019 Trends
Survey of State Insurance Laws Regarding Title (March 2019)
2019 Looking Ahead In The Title Insurance Industry
Insurer Mergers

4. I. Current State of Title Insurance
NAIC Taskforce
Purpose of Task Force
2018 Updates
2019 Updates

5. I. Current State of Title Insurance
Settlements, Technology, Wire Fraud
Current Settlement Practices
Wire Transfer Fraud
Potential Changes to Settlement Practices

6. II. Best Practices – Examining a Title Insurer
1. Claims
Timely Processing – Specific Timeframe Not Always in Laws
Consistent Claim Adjudication
Proper Documentation
Exclusions are Properly Applied
Reserve Setting
Reasonable Rationale for BOTH Denial and Payment
Ensure the Company Does Not Take Advantage of the Consumer’s Lack of Knowledge

7. II. Best Practices – Examining a Title Insurer
2. Rates
Were State filing requirements met?
Using Old Rates and/or Rating Factors
Even if a web-based rater is used, calculations were incorrect
Discounts are applied for a refinance, however, no support
Issuing a standard policy using enhanced rates

8. II. Best Practices – Examining a Title Insurer
3. Forms
Were State filing requirements met?
Insurer controls over forms in use by agents
Required disclosures
Policy issuance and controls over agent inventory

9. II. Best Practices – Examining a Title Insurer
4. Inducements
Review of Insurer/Agent Contracts
Review of Expenses and Associated Accounting Practices
Review of Supporting Documentation such as a List of Attendees for a Sporting Event
Not Always Clear Cut

10. II. Best Practices – Examining a Title Insurer
5. Compensation / Commissions
Compare Commissions to Agent Agreement
Was Commission Amount Paid in Accordance with State Laws?
Are Commissions/Compensation Paid to Licensed Individuals?
How are Referral Commissions Handled by the Carrier?

11. II. Best Practices – Examining a Title Insurer
6. Indirect Inducements
Review of Underwriting File Documentation and Notes
Review of Expenses such as Title Search Fees
Review of Claim Files for Loss Recoupment Activities

12. II. Best Practices – Examining a Title Insurer
7. Underwriting
Review for current title searches/abstracts
Were all defects cured or noted as exceptions?
If applicable, was the policy approved by the carrier?

13. II. Best Practices – Examining a Title Insurer
Examination Summary
Summary of the Examination Process
NAIC Handbook as a Resource
Attend Title Working Group Meetings

14. III. ALTA Surveys TRID Title Insurance Fee Disclosure
Average Closing Costs (2018)
Title Companies and Cyber / Social Engineering Coverage (2019)

15. IV. Industry and Regulator Challenges
Few Laws that are typically broad
Settlement/Carrier Roles and Responsibilities
Incentives for Compliance – Cost/Benefit Analysis