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F I S C A L I M P A C T R E P O R T

SPONSOR McSorley

DATE TYPED 2/21/05

HB

SHORT TITLE Restore Title Search Duty of Reasonable Care

SB 653

ANALYST Rosen

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB376 and HB731

Conflicts with HB33

SOURCES OF INFORMATION

Responses Received From

Regulation and Licensing Department (RLD)

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

Senate Bill 653 makes the title insurer solely liable under the title insurance policy for errors and

mistakes made by its agents and its employees in the title search and examination required by

59A-30-11.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

According to PRC, this bill conflicts with HB33, which would have the title insurer and the agent

both liable separately for search errors.

PRC notes this bill is similar in purpose to SB376 and HB731.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

RLD indicates title insurers will not be expected to provide the underwriting standards contem-

plated by the language in the bill and consumers will not be afforded that level of protection.

JR/yr