NAILTA President Speaks To NAIC: Time to Prohibit AfBAs is Now!

Yesterday, NAILTA President, Anthony L. Affatati, was invited to address the National Association of Insurance Commissioners (NAIC) in Washington DC during their Fall Meeting. NAIC is the consortium of each state’s department of insurance regulator which helps to draft rules regarding the industry. Currently, NAIC is working on draft rules regarding escrow account theft and increasing the role of regulators in the title insurance industry. Our President gave an impassioned speech to NAIC on the issue of affiliated business arrangements and the harms those entities cause to competition and prices in the title insurance industry. NAILTA is seeking to help improve the role of the independent settlement service provider in regulating the industry. Historically, the information provided to NAIC has consisted of information most favorable to the conditions of the underwriter without a greater understanding of the roles played by agents. NAILTA seeks to change that.   To read Mr. Affatati’s remarks from yesterday, please click...

NAILTA Weighs in on NAIC Escrow Theft White Paper

As the National Association of Insurance Commissioners (NAIC) and the title insurance industry attempt to address the concerns of regulators over the subject of escrow account theft and consumer protection issues, the National Association of Independent Land Title Agents (NAILTA) released the enclosed white paper and introduced an important predictive measure to help regulators spot title insurance underwriters who may be at greater risk for insolvency. Additionally, the proposed rule aims to help title insurance underwriters maintain adequate reserves to meet the demands of their business which, in turn, helps underwriters prepare greater controls for their agents.  Known as the Premium-to-Surplus Ratio Rule (PSR Rule), the measure identifies those underwriters who are at greatest risk for a material financial event under even the most ordinary of cycles in the title insurance industry.  NAILTA hopes that regulators will adopt the rule in order to prevent existing and expansion underwriters stay within their means and concentrate on maintaining their agents with responsible risk management...

NAILTA to NAIC: PTCs are Anti-Consumer

NAILTA has weighed in on the NAIC public hearing concerning private transfer fee covenants.  Click here to find out what national title agents think.   Private transfer fee covenants purport to bind subsequent homeowner to pay a 1% fee to the original covenantor on each sale of the property for a period 99 years.  Under the common law, in order for a covenant to run with the land, three requirements must be met.  First, the parties must intend for it to run with the land.  Second, the covenant must “touch and concern” the land.  And, third, there must be privity of contract.  The second requirement, that the covenant “touches and concerns” the land is lacking with covenants that merely burden a homeowner with a requirement to pay a fee with no contemporaneous benefit to the property. NAILTA is opposed to these fees and supports any state or federal bill that would prohibit...