14916933_sAs 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 controls.