How to stay out of
HOT water?
(Keeping Title Agents LUKEWARM)
William R. Lacy
1200 West Third Street
Little Rock, AR 72201-1904 501-682-5215 Phone
501-917-2748 FAX
Sarah Harper Gray,
Title Insurance Coordinator
Nina Carter,
Insurance Commissioner
Commissioner Bradford was appointed in
January 2009 by Governor Mike Beebe.
Our Commissioner has more than four
decades of experience in the insurance
industry, including 30 years as founder of
First Arkansas Insurance Group, a
statewide network of independent property
and casualty agencies.
Customer service and consumer
Previously, the Director of the Division of
Behavioral Health Services within the AR
Department of Human Services.
The Arkansas Insurance Department gained jurisdiction over the licensing of title insurance agents on January 1, 2008, through the
Arkansas Title Insurance Act, Act 684.
The Department already had jurisdiction over title insurance companies.
Ark. Code Ann. § 23-103-401 et. seq.
The ACT abolished the Arkansas Title Insurance Agents’ Licensing Board and transferred its
Department Rules Promulgated
Rule 87 – Title Insurance
Provides Department guidance to the Title Insurance Act
Rule 88 – Title Insurance Licensing and
What does being a licensed title
agent qualify me to do?
The statutory definition of a title insurance
agent is: an individual affiliated with a title
insurance agency that is authorized on
behalf of a title insurer (underwriter) to
issue a title insurance report or title
Avoid Licensing Issues?
The Title Agent License is a
comprehensive license.
“Solicit”
Calculating title insurance rates subject to reissue rates, enhancements to coverage, endorsements or any deviation from any licensed title
insurance agency’s standard published rates
“Negotiate”
Explain, discuss or interpret coverage, analyze exposures or policies, or
give opinions or recommendations as to coverage
Counsel, urge or advise any prospective buyer or seller to purchase a
particular policy or to insure with a particular company (insurer)
Examination of title to determine marketability and insurability of title in
accordance with the title insurer’s underwriting practices
Guaranteeing, warranting, or otherwise insuring the status of title, liens,
encumbrances, or other matters of record
Production, issuance and execution of a title insurance commitment or
“Sell”
Indicate that requested coverage is or will be bound or issued Bind coverage
A closing agent who explains, discusses or interprets coverage,
Who doesn’t need a license:
Dispense brochures and other general information (so long as no conversation
relating to the terms of a title insurance commitment and/or policy)
Performs marketing duties under the supervision of a title insurance agent
Gathering and receiving information from a potential policyholder to give to an agent Scheduling appointments with a title agent
Quoting title insurance rates including references to a published or printed list or
computer data base of standard rates prepared by a licensed title insurance agent
Communicating with the policyholder or prospective policyholder in order to obtain
factual information necessary to complete a title search of all matters of record
Conducting a title search
An individual performing escrow and real estate closing or settlement services and
who does not solicit, sell or negotiate title insurance.
Providing the document and obtaining purchasers’ and/or borrowers’ signatures on
the written notice required by A.C.A. § 23-103-413(b)(1)
A closing agent that provides closing services but does not otherwise engage in title
Additional Information Regarding Licensing:
http://www.insurance.arkansas.gov/License/TitleFAQs.htm
Highlights:
Ark. Code Ann. § 23-64-502(11) "Negotiate" means the act of conferring directly with or offering advice directly to a purchaser or prospective
purchaser of a particular contract of insurance concerning any of the
substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers;
Ark. Code Ann. § 23-64-502(13) "Sell" means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company;
How to keep a Title Insurance
Agent’s License?
Renew of your License is Due by
Your Birthday
Complete Annual CE
Maintain an Company Appointment
Continue to be:
Competent Trustworthy
Financially Responsible
Good Personal and Business Reputation
Comply with the PLMA, Ark. Code Ann. §
23-64-501 et seq.
How Can I Lose my Title Insurance
Agent’s License?
§ 23-64-512. License denial, nonrenewal, or revocation
(1) Providing incorrect, misleading, incomplete, or materially untrue information in the license
application;
(2) Violating any of the following that calls into
question the insurance producer’s fitness to hold a license:
(A) A law; or
(B) A regulation, subpoena, or order of: (i) The commissioner;
(ii) Another state’s insurance commissioner; or (iii) A court of competent jurisdiction.
(4) Improperly withholding, misappropriating, or
converting any moneys or properties received in the course of doing insurance business;
(5) Intentionally misrepresenting the terms of an actual or proposed insurance contract or
application for insurance;
(6) Having been convicted of a felony;
(7) Having admitted or been found to have
committed any insurance unfair trade practice or fraud;
(8) Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, lack of good personal or
(9) Having an insurance producer license or its
equivalent denied, suspended, or revoked in any other state, province, district, or territory;
(10) Forging another’s name to an application for insurance or to any document related to an
insurance transaction;
(11) Improperly using notes or any other reference material to complete an examination for an
insurance license;
(13) Failing to provide a written response after receipt of a written inquiry from the commissioner or his or her
representative as to transactions under the license within thirty (30) days after receipt thereof unless the timely
written response is knowingly waived in writing by the commissioner;
(14) Failing to comply with an administrative or court order imposing a child support obligation;
(15) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax;
(16) Refusing to be examined or to produce any accounts, records, or files for examination; or
§ 23-103-416. Penalties--Liabilities
(a) If the Insurance Commissioner determines that a title insurer, title insurance agency, title insurance agent, or any other person has violated this subchapter or any rule or order promulgated under this subchapter, the
commissioner may order:
(B) If the title insurer, title insurance agency,
title insurance agent, or other person
knew or reasonably should have known
that the title insurer, title insurance
agency, title insurance agent, or other
person was in violation of this subchapter,
the penalty shall not exceed five thousand
dollars ($5,000) for each act or violation
(2) Suspension or revocation of the title insurer’s, title insurance
agency’s, title insurance agent’s, or other person’s license if the title insurer, title insurance agency, title insurance agent, or other person knew or reasonably should have known that the title insurer, title insurance agency, title insurance agent, or other person was in violation of this subchapter.
(b) If an order of rehabilitation or liquidation of the title insurer or of conservation of assets of the title insurer has been entered and the receiver appointed under the order determines that the title insurance agency or title insurance agent or any other person has not complied with this subchapter or any rule or order promulgated under this subchapter and the title insurer suffered any resulting loss or damage, the receiver may
maintain a civil action for recovery of damages or other
appropriate sanctions for the benefit of the title insurer and its policyholders and creditors.
Other Penalties…
Letter of Reprimand
Probation
Suspension
Revocation of License
By Consent OrderTrade Practices Act
§ 23-66-201, et seq.
Unfair competition, unfair or deceptive acts
§ 23-66-206 Definitions
Defamation
False information and advertising
§ 23-66-505 Mandatory Reporting
of Fraudulent Insurance Acts
(a) A person engaged in the business of
insurance having knowledge or a reasonable belief that a fraudulent insurance act is being, will be, or has been committed shall provide to the Insurance Commissioner the information
required by, and in a manner prescribed by, the commissioner.
(b) Any person engaged in the business of insurance who knowingly fails to report as
The Criminal Investigation Division (CID) is a division within the Arkansas Insurance
Department. CID was created by the State Legislature in 1993 to investigate workers'
compensation fraud. In 1997, the Legislature
To report a suspected case of fraud:
Mail or fax CID a copy of the
Uniform Suspected Insurance
Fraud Reporting Form
,
or
Complete the national NAIC Online Reporting Form,
or
Call CID at (866) 660-0888 or (501) 371- 2790 or email at
Consumer Protection
Consumer Protection is a focus
Agent Education
Complaints
Complaints can be filed by consumers or
other agents
Examine for Violations of the Insurance
Code
Possible Fraud?
Thank You!
Please contact us if you have any other questions.
Arkansas Insurance Department 1200 West Third Street
Little Rock, AR 72201-1904 501-682-5215 Phone
501-371-2748 FAX
Sarah Harper,
Title Insurance Coordinator
sarah.harper@arkansas.gov
Nina Carter,
Associate Counsel