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A MEMORIAL

REQUESTING THE INSURANCE DIVISION OF THE PUBLIC REGULATION

COMMISSION TO PROPOSE COMPREHENSIVE REVISIONS TO THE NEW

MEXICO TITLE INSURANCE LAW.

WHEREAS, for the last ten years, the title insurance

industry in New Mexico has earned profits that are far in

excess of the profit margins underlying the rates promulgated

by the superintendent of insurance; and

WHEREAS, current statutes require all title insurers to

charge uniform rates set by the superintendent; and

WHEREAS, the introduction of price competition may

encourage title insurers to offer consumers and lenders rates

that are lower than those adopted by the superintendent of

insurance; and

WHEREAS, the current statutory requirement that the

superintendent conduct annual title insurance rate hearings

absorbs an inordinate amount of the limited resources of the

insurance division of the public regulation commission; and

WHEREAS, concerns have been raised that remedies

available to property owners arising from negligent title

searches and examinations may be unreasonably limited by the

New Mexico Title Insurance Law; and

WHEREAS, the attorney general; the public regulation

commission; the superintendent of insurance; think New Mexico,

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a nonpartisan public policy group; the American association of

retired persons; the senior citizens' law office; the United

States conference of Catholic bishops; real estate groups;

newspapers across the state; and other interested parties have

stated the need for revising the New Mexico Title Insurance

Law;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF

REPRESENTATIVES OF THE STATE OF NEW MEXICO that the insurance

division of the public regulation commission be requested to

draft a comprehensive revision of the New Mexico Title

Insurance Law and to submit the proposed revision to the

interim legislative finance committee, the interim Mortgage

Finance Authority Act oversight committee and the governor;

and

BE IT FURTHER RESOLVED that a copy of this memorial be

transmitted to the insurance division of the public regulation

commission.