Louisiana Gov. John Bel Edwards signed legislation to provide qualification and licensing requirements for title insurance producers. The bill will go into effect Jan. 1, 2021.
The bill, SB 180, defines “individual title insurance producer” or “individual producer” as “a licensed natural person who is either a resident of Louisiana or a nonresident individual who is employed by a resident licensee, authorized on behalf of the title insurer to issue title insurance reports or policies.”
It defines “agency title insurance producer” or “agency producer” as “a business entity appointed to represent a title insurer, whose principal place of business is physically located in Louisiana, or who has designated a resident individual producer employed by the business entity as responsible for complying with the requirements of” the statute.
Only those authorized as title insurers or producers will be qualified to issue title policies or reports or otherwise transact title insurance business.
An individual seeking to be an individual title insurance producer must:
- Be a natural person at least 18 years old;
- Be a resident of Louisiana or be a full-time employee of a licensed agency producer whose principal place of business is physically located in Louisiana;
- Hold a high school diploma, a diploma for completion of a home study program approved by the state board of elementary and secondary education, or a high school equivalency diploma issued after successfully completing the test of general educational development;
- Be able to read, write and be sufficiently knowledgeable of the English language;
- Receive a passing score on the title insurance examination administered by the department; and
- Complete the required hours of prelicensing education under R.S. 22:1545 and 1571 related to Louisiana property law and title insurance within the one-year period prior to application.
Agency title insurance producers must:
- Be a Louisiana entity whose principal place of business is physically located in Louisiana, or a foreign entity registered to do business in Louisiana whose principal place of business in Louisiana is suitable for conducting title insurance business and real estate closings;
- Employ at least one licensed individual producer designated with responsibility for ensuring compliance with the requirements of the bill;
- Maintain its appointment to represent a title insurer, along with affiliation of the individual producer designated above;
- The entity and its designated individual producer must not have had an agency producer license, or its equivalent or an individual producer license, or its equivalent, suspended, revoked, or refused in any other state, province, district, or territory.
Under current law, the department and title insurers are permitted to examine, audit, and inspect any and all books, records, files and escrow and operating accounts related to the title insurance business maintained by a title insurance producer, its successor in interest, transferee, or receiver as provided under the statute.
The new law adds a provision stating, “In order to comply with the provisions of this section, a producer shall maintain records in legible format, readily accessible to the department, and in a location fully accessible from or physically existing in Louisiana.”