FOR IMMEDIATE RELEASE CONTACT: Susan Nolan Candace Thorson NCOIL National Office 518-687-0178 NCOIL TO TAKE TOUGH LOOK AT TITLE INSURANCE REGULATION, WEIGHS NEED FOR MODEL LAW Point Clear. Alabama. November 18. 2012-lawmakers at the NCOIL Annual Meeting kicked off their review of the title insurance market and committed to exploring possible model legislation in 2013. The special November 16 panel discussion held by the Property-Casualty Insurance Committee responded to strong legislator interest in the issue at the Summer Meeting and focused on cost and competition concerns, among other things. Participating in the discussion were Commissioner Joe Murphy (MA) who overviewed various National Association of Insurance Commissioners (NAIC) title insurance efforts; Justin Ailes of the American land Title Insurance Association, who outlined how title insurance works and its economic impacts; and Robert Holman representing the National Association of Independent land Title Agents (NAILTA) who spoke to conflict-of-interest concerns, among other items. Sen. Carroll Leavell (NM), who served as NCOIL President at the time of the discussion, asserted after the debate that “We need to pay close attention to anything that costs homebuyers money-particularly in today’s troubled market and particularly when there are very real concerns over unfair pricing. That’s a major motivation in looking at this issue.” Rep. Steve Riggs (KY), P-C Committee Chair, commented that: Title insurance plays a necessary role in the proper functioning of real estate markets around the country. The coverage can protect both lenders and consumers and prevent much difficulty down the road. But-like all forms of insurance-it must be properly regulated. State laws must exist to ensure that consumers know what they’re buying, know their options, and know that they’re paying a fair price. Our investigation into the effectiveness of title insurance oversight will identify any regulatory gaps. During the course of the discussion, Mr. Ailes said that title insurers in 201 1 had a combined ratio-in other words, the amount of expenses and losses as related to premium earned — of 112.7 percent, compared to the rest of the p-c industry’s ostensibly healthier 108.3 percent. He explained that title insurance covers against past events, rather than-like auto insurance, for instance-possible future losses, and that the title insurance industry was working on best practices to enhance efficiencies and consumer protections. Mr. Holman said consumers should be concerned about consolidation and anti-competition, noting that just four companies write a significant majority of coverage in the U.S. He said that arrangements between title insurers and entities such as realtors and settlement lawyers limit consumer choice and help increase prices. He also commented that improvements and protections were warranted. At the conclusion of the Committee meeting, the group adopted a 2013 Committee charge to investigate title insurance concerns and take a position as appropriate. Title insurance-which is primarily a U.S. phenomenon-protects lenders from liability and losses related to land title disputes. Lenders require their borrowers to purchase title insurance on lenders’ behalf in order to secure a loan. The borrower can buy title insurance for himself if he chooses-at an additional cost. The NCOIL Annual Meeting took place from November 15 to 18 in Point Clear, Alabama. The 2013 Spring Meeting will be held March 8 to lain Washington, DC. NCOIL is an organization of state legislators whose main area of public policy interest is insurance legislation and regulation. Most legislators active in NCOIL either chair or are members of the committees responsible for insurance legislation in their respective state houses across the country. More information is available at www.NCOIL.org. For further details, please contact the NCOIL National Office at 518-687-0178 or by e-mail at cthorson@NCOIL.org.

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Continuing Ed for Title Agents