As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 692A.015
to 692A.080 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1977, 977; A 1985, 1826; 1993, 2334)
“Abstract of title”
means any written representation listing all recorded conveyances,
instruments and documents which, under the laws of this State, impart
constructive notice with respect to the chain of title of the real
property described therein. The term does not include a binder,
commitment to insure or preliminary report of title.
(Added to NRS by 1993, 2333)
“Applicant” means a person,
whether or not a prospective insured, who applies to a title insurer or
its agent for title insurance and who, at the time of the application, is
not an agent for a title insurer.
(Added to NRS by 1977, 977)
“Business of title insurance” or “title insurance
business” includes:
1. The issuance of or proposal to issue any policy of title
insurance as an insurer, guarantor or indemnitor;
2. The solicitation, negotiation or execution of a policy of title
insurance, or the performance of any related services arising out of the
execution of a policy of title insurance, excluding reinsurance;
3. The performance by a title insurer, a title agent or an escrow
agency owned, in whole or in part, by a title insurer or title agent, of
any service in conjunction with the issuance or contemplated issuance of
a policy of title insurance, including, but not limited to, the handling
of any escrow, settlement or closing in connection therewith, or doing or
proposing to do any business which is in substance the equivalent of the
services described in this subsection; and
4. The act of a title insurer whereby he provides a prospective
purchaser of a policy of title insurance with a closing letter which
assures and assumes liability for the proper performance of any services
required to conduct a real estate closing performed by a title agent with
which the insurer maintains an underwriting agreement.
(Added to NRS by 1993, 2333)
“Commitment to insure” or “preliminary report of title”
means a report furnished in connection with an application for title
insurance which constitutes an offer to issue a policy of title insurance
subject to the terms, conditions and exceptions stated in the report, but
which does not constitute a representation as to the condition of the
title to real property. The term does not include an abstract of title.
(Added to NRS by 1993, 2334)
“Escrow” means any transaction
wherein one person, for the purpose of effecting the sale, transfer,
encumbering or leasing of real or personal property to another person,
delivers any written instrument, money, evidence of title to real or
personal property, or other thing of value to a third person until the
happening of a specified event or the performance of a prescribed
condition, when it is then to be delivered by the third person to a
grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor or
any agent or employee of any of them. The term includes the collection of
payments and the performance of related services by a third person in
connection with a loan secured by a lien on real property.
(Added to NRS by 1985, 1822; A 1991, 1857)
“Escrow officer” means a
person employed by a title insurer or title agent to handle escrows,
settlements and closings.
(Added to NRS by 1985, 1822)
“Net retained
liability” means the total liability retained by a title insurer for a
single risk after the ceding of reinsurance.
(Added to NRS by 1977, 977)
“Policy of title insurance” or “title policy” means a written
instrument or contract by which title insurance liability is assumed. The
term does not include an abstract of title, binder, commitment to insure
or preliminary report of title.
(Added to NRS by 1993, 2334)
1. “Premium” means charges for:
(a) Assuming a risk;
(b) Abstracting, searching and examining title to determine
insurability; and
(c) Any other activity associated with the assumption of risk.
2. “Premium” does not include charges for:
(a) Escrow;
(b) Settlement or closing; or
(c) Other special services not associated with the assumption of
risk, whether or not they are called premiums.
(Added to NRS by 1977, 977)
“Single risk” means the
insured amount of any policy or contract of title insurance issued by a
title insurer unless two or more policies or contracts are simultaneously
issued on different estates in identical real property, in which event it
means the sum of the insured amounts of all such policies or contracts.
Any policy or contract which insures a mortgage interest that is excepted
in a fee or leasehold policy or contract, and which does not exceed the
insured amount of the fee or leasehold policy or contract, shall be
excluded in computing the amount of a single insurance risk.
(Added to NRS by 1977, 978)
“Title agent” is a person,
firm or corporation appointed by a title insurer to solicit applications
for insurance or to negotiate for title insurance contracts on its
behalf, and if authorized to do so by the insurer, to prepare and
countersign title insurance policies and contracts.
(Added to NRS by 1977, 978)
“Title insurer” means a
company organized under the laws of this state for the purpose of
transacting as insurer the business of title insurance and any foreign or
alien company licensed to transact business as an insurer engaged in
title insurance.
(Added to NRS by 1977, 978)
“Title plant company”
means a person engaged in the business of preparing title searches, title
examinations and certificates or abstracts of title which are the basis
of the issuance of title policies by a title insurer.
(Added to NRS by 1977, 978)
The Commissioner may adopt regulations
for the administration of this chapter.
(Added to NRS by 1977, 978)
LICENSES
1. The Commissioner shall provide by regulation for the licensing
of title agents, their branch offices, direct writing title insurers and
escrow officers.
2. Each title agent shall maintain his books of account and record
and his vouchers pertaining to title insurance business in a manner which
permits the Commissioner or his representative to ascertain readily
whether the agent has complied with the provisions of this chapter.
3. A title agent or escrow officer may engage in the business of
handling escrows, settlements and closings if he maintains a separate
record of all receipts and disbursements of money held in escrow and does
not commingle that money with his own.
4. For the purpose of determining its financial condition,
fulfillment of its contractual obligations and compliance with law, the
Commissioner or his representative or the Commissioner of Financial
Institutions of the Department of Business and Industry or his
representative when requested by the Commissioner of Insurance shall each
year examine or cause to be examined the affairs, transactions,
agreements, assets, records and accounts, including the escrow accounts,
of a title agent, title insurer or escrow officer.
5. A title agent or insurer may engage a certified public
accountant to perform such an examination in lieu of the Commissioner. In
such a case, the examination must be equivalent to the type of
examination made by the Commissioner and the expense must be borne by the
title agent or insurer being examined.
6. The Commissioner shall determine whether an examination
performed by an accountant pursuant to subsection 5 is equivalent to an
examination conducted by him. The Commissioner may examine any area of
the operation of a title agent or insurer if the Commissioner determines
that the examination of that area is not equivalent to an examination
conducted by him.
7. A person shall not become licensed to circumvent the provisions
of this chapter or any other law of this state.
(Added to NRS by 1977, 978; A 1985, 1826; 1991, 1857; 1993, 1920,
2334; 1995, 696)
[Effective until the date of
the repeal of the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and
for noncompliance with certain processes relating to paternity or child
support proceedings.]
1. A person who wishes to obtain a license as an escrow officer
must:
(a) File a written application in the Office of the Commissioner;
(b) Except as otherwise provided in subsection 3, demonstrate
competency in matters relating to escrows by:
(1) Having at least 1 year of recent experience with respect
to escrows of a sufficient nature to allow him to fulfill the
responsibilities of an escrow officer; or
(2) Passing a written examination concerning escrows as
prescribed by the Commissioner;
(c) Submit the name and business address of the title agent who
will supervise the escrow officer;
(d) Submit the statement required pursuant to NRS 692A.1033 ; and
(e) Pay the fees required by NRS 680B.010 .
2. The Commissioner shall issue a license as an escrow officer to
any person who satisfies the requirements of subsection 1.
3. The Commissioner may waive the requirements of paragraph (b) of
subsection 1 if the applicant submits with his application satisfactory
proof that he, in good standing, currently holds a license, or held a
license within 1 year before the date he submits his application, which
was issued pursuant to the provisions of NRS 645A.020 .
4. A license issued pursuant to this chapter continues in force
for 3 years unless it is suspended, revoked or otherwise terminated. The
license may be renewed upon submission of the statement required pursuant
to NRS 692A.1033 and payment of the
applicable fee for renewal to the Commissioner on or before the last day
of the month in which the license is renewable.
5. A license which is not renewed expires at midnight on the last
day specified for its renewal. The Commissioner may accept a request for
renewal received by him within 30 days after the expiration of the
license if the request is accompanied by the statement required pursuant
to NRS 692A.1033 and a fee for
renewal of 150 percent of the fee otherwise required.
6. The Commissioner shall adopt regulations to carry out the
provisions of this section.
(Added to NRS by 1985, 1822; A 1987, 465; 1995, 1006; 1997, 2201)
[Effective on the date of the
repeal of the federal law requiring each state to establish procedures
for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and
for noncompliance with certain processes relating to paternity or child
support proceedings.]
1. A person who wishes to obtain a license as an escrow officer
must:
(a) File a written application in the Office of the Commissioner;
(b) Except as otherwise provided in subsection 3, demonstrate
competency in matters relating to escrows by:
(1) Having at least 1 year of recent experience with respect
to escrows of a sufficient nature to allow him to fulfill the
responsibilities of an escrow officer; or
(2) Passing a written examination concerning escrows as
prescribed by the Commissioner;
(c) Submit the name and business address of the title agent who
will supervise the escrow officer; and
(d) Pay the fees required by NRS 680B.010 .
2. The Commissioner shall issue a license as an escrow officer to
any person who satisfies the requirements of subsection 1.
3. The Commissioner may waive the requirements of paragraph (b) of
subsection 1 if the applicant submits with his application satisfactory
proof that he, in good standing, currently holds a license, or held a
license within 1 year before the date he submits his application, which
was issued pursuant to the provisions of NRS 645A.020 .
4. A license issued pursuant to this chapter continues in force
for 3 years unless it is suspended, revoked or otherwise terminated. The
license may be renewed by payment of the applicable fee for renewal to
the Commissioner on or before the last day of the month in which the
license is renewable.
5. A license which is not renewed expires at midnight on the last
day specified for its renewal. The Commissioner may accept a request for
renewal received by him within 30 days after the expiration of the
license if the request is accompanied by a fee for renewal of 150 percent
of the fee otherwise required.
6. The Commissioner shall adopt regulations to carry out the
provisions of this section.
(Added to NRS by 1985, 1822; A 1987, 465; 1995, 1006; 1997, 2201,
effective on the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings)
[Expires by limitation on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings.]
1. An applicant for the issuance or renewal of a license as a
title agent or escrow officer shall submit to the Commissioner the
statement prescribed by the Division of Welfare and Supportive Services
of the Department of Health and Human Services pursuant to NRS 425.520
. The statement must be completed and
signed by the applicant.
2. The Commissioner shall include the statement required pursuant
to subsection 1 in:
(a) The application or any other forms that must be submitted for
the issuance or renewal of the license; or
(b) A separate form prescribed by the Commissioner.
3. A license as a title agent or escrow officer may not be issued
or renewed by the Commissioner if the applicant:
(a) Fails to submit the statement required pursuant to subsection
1; or
(b) Indicates on the statement submitted pursuant to subsection 1
that he is subject to a court order for the support of a child and is not
in compliance with the order or a plan approved by the district attorney
or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant
to subsection 1 that he is subject to a court order for the support of a
child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the
repayment of the amount owed pursuant to the order, the Commissioner
shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2200)
[Expires by limitation on the date of the repeal of the federal
law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and
recreational licenses for child support arrearages and for noncompliance
with certain processes relating to paternity or child support
proceedings.]
1. If the Commissioner receives a copy of a court order issued
pursuant to NRS 425.540 that provides
for the suspension of all professional, occupational and recreational
licenses, certificates and permits issued to a person who is the holder
of a license as a title agent or escrow officer, the Commissioner shall
deem the license issued to that person to be suspended at the end of the
30th day after the date on which the court order was issued unless the
Commissioner receives a letter issued to the holder of the license by the
district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has
complied with the subpoena or warrant or has satisfied the arrearage
pursuant to NRS 425.560 .
2. The Commissioner shall reinstate a license as a title agent or
escrow officer that has been suspended by a district court pursuant to
NRS 425.540 if the Commissioner
receives a letter issued by the district attorney or other public agency
pursuant to NRS 425.550 to the person
whose license was suspended stating that the person whose license was
suspended has complied with the subpoena or warrant or has satisfied the
arrearage pursuant to NRS 425.560 .
(Added to NRS by 1997, 2201)
[Expires by
limitation on the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.] An application for the
issuance of a license as a title agent or escrow officer must include the
social security number of the applicant.
(Added to NRS by 1997, 2201)
Before the issuance or renewal of a license as a
title agent or escrow officer the applicant must pay a fee established by
the Commissioner of not more than $15 for deposit in the insurance
recovery account created by NRS 679B.305 .
(Added to NRS by 1987, 465; A 1995, 1103; 2005, 2147 )
SURETY BONDS
1. In addition to all other requirements set forth in this title
and except as otherwise provided in subsection 4 and NRS 692A.1042 , as a condition to doing business in this
state, each title agent and title insurer shall deposit with the
Commissioner and keep in full force and effect a corporate surety bond
payable to the State of Nevada, in the amount set forth in subsection 3,
which is executed by a corporate surety satisfactory to the Commissioner
and which names as principals the title agency or title insurer and all
escrow officers employed by or associated with the title agent or title
insurer.
2. The bond must be in substantially the following form:
Know All Men by These Presents, that ........................, as
principal, and ........................, as surety, are held and firmly
bound unto the State of Nevada for the use and benefit of any person who
suffers damages because of a violation of any of the provisions of
chapter 692A of NRS, in the sum of
............, lawful money of the United States, to be paid to the State
of Nevada for such use and benefit, for which payment well and truly to
be made, and that we bind ourselves, our heirs, executors,
administrators, successors and assigns, jointly and severally, firmly by
these presents.
The condition of that obligation is such that: Whereas, the
Commissioner of Insurance of the Department of Business and Industry of
the State of Nevada has issued the principal a license or certificate of
authority as a title agent or title insurer, and the principal is
required to furnish a bond, which is conditioned as set forth in this
bond:
Now, therefore, if the principal, his agents and employees,
strictly, honestly and faithfully comply with the provisions of chapter
692A of NRS, and pay all damages suffered
by any person because of a violation of any of the provisions of chapter
692A of NRS, or by reason of any fraud,
dishonesty, misrepresentation or concealment of material facts growing
out of any transaction governed by the provisions of chapter 692A of NRS, then this obligation is void; otherwise it
remains in full force.
This bond becomes effective on the ..........(day) of
................(month) of ......(year), and remains in force until the
surety is released from liability by the Commissioner of Insurance or
until this bond is cancelled by the surety. The surety may cancel this
bond and be relieved of further liability hereunder by giving 60 days’
written notice to the principal and to the Commissioner of Insurance of
the Department of Business and Industry of the State of Nevada.
In Witness Whereof, the seal and signature of the principal hereto
is affixed, and the corporate seal and the name of the surety hereto is
affixed and attested by its authorized officers at
........................, Nevada, this ................(day) of
................(month) of ......(year).
......................................................... (Seal)
Principal
......................................................... (Seal)
Surety
By..................................................
Attorney-in-fact
.......................................................
Licensed resident agent
3. Each title agent and title insurer shall deposit a corporate
surety bond that complies with the provisions of this section or a
substitute form of security that complies with the provisions of NRS
692A.1042 in an amount that:
(a) Is not less than $20,000 or 2 percent of the average collected
balance of the trust account or escrow account maintained by the title
agent or title insurer pursuant to NRS 692A.250 , whichever is greater; and
(b) Is not more than $250,000.
Ê The Commissioner shall determine the appropriate amount of the surety
bond or substitute form of security that must be deposited initially by
the title agent or title insurer based upon the expected average
collected balance of the trust account or escrow account maintained by
the title agent or title insurer pursuant to NRS 692A.250 . After the initial deposit, the Commissioner
shall, on an annual basis, determine the appropriate amount of the surety
bond or substitute form of security that must be deposited by the title
agent or title insurer based upon the average collected balance of the
trust account or escrow account maintained by the title agent or title
insurer pursuant to NRS 692A.250 .
4. A title agent or title insurer may offset or reduce the amount
of the surety bond or substitute form of security that the title agent or
title insurer is required to deposit pursuant to subsection 3 by the
amount of any of the following:
(a) Cash or securities deposited with the Commissioner in this
state pursuant to NRS 680A.140 or
682B.015 .
(b) Reserves against unpaid losses and loss expenses maintained
pursuant to NRS 692A.150 or 692A.170
.
(c) Unearned premium reserves maintained pursuant to NRS 692A.160
or 692A.170 .
(d) Fidelity bonds maintained by the title agent or title insurer.
(e) Other bonds or policies of insurance maintained by the title
agent or title insurer covering liability for economic losses to
customers caused by the title agent or title insurer.
(Added to NRS by 1999, 3811 )
1. As a substitute for the surety bond required by NRS 692A.1041
, a title agent or title insurer may,
in accordance with the provisions of this section, deposit with any bank
or trust company authorized to do business in this state, in a form
approved by the Commissioner:
(a) An obligation of a bank, savings and loan association, thrift
company or credit union licensed to do business in this state;
(b) Bills, bonds, notes, debentures or other obligations of the
United States or any agency or instrumentality thereof, or guaranteed by
the United States; or
(c) Any obligation of this state or any city, county, town,
township, school district or other instrumentality of this state, or
guaranteed by this state.
2. The obligations of a bank, savings and loan association, thrift
company or credit union must be held to secure the same obligation as
would the surety bond. With the approval of the Commissioner, the
depositor may substitute other suitable obligations for those deposited
which must be assigned to the State of Nevada and are negotiable only
upon approval by the Commissioner.
3. Any interest or dividends earned on the deposit accrue to the
account of the depositor.
4. The deposit must be in an amount at least equal to the required
surety bond and must state that the amount may not be withdrawn except by
direct and sole order of the Commissioner. The value of any item
deposited pursuant to this section must be based upon principal amount or
market value, whichever is lower.
(Added to NRS by 1999, 3813 )
1. The surety may cancel a bond upon giving 60 days’ notice to the
Commissioner by certified mail. Upon receipt by the Commissioner of such
a notice, the Commissioner immediately shall notify the title agent or
title insurer who is the principal on the bond of the effective date of
cancellation of the bond, and that his license or certificate of
authority will be revoked unless he furnishes an equivalent bond or a
substitute form of security authorized by NRS 692A.1042 before the effective date of the
cancellation. The notice must be sent to the title agent or title insurer
by certified mail to his last address of record filed in the office of
the Division.
2. If the title agent or title insurer does not comply with the
requirements set out in the notice from the Commissioner, his license or
certificate of authority must be revoked on the date the bond is
cancelled.
(Added to NRS by 1999, 3813 )
1. Any person claiming against a bond may bring an action in a
court of competent jurisdiction on the bond for damages to the extent
covered by the bond. A person who brings an action on a bond shall notify
the Commissioner in writing upon filing the action. An action may not be
commenced after the expiration of 3 years following the commission of the
act on which the action is based.
2. Upon receiving a request from a person for whose benefit a bond
is required, the Commissioner shall notify him:
(a) That a bond is in effect and the amount of the bond; and
(b) If there is an action against the bond, the title, court and
case number of the action and the amount sought by the plaintiff.
3. If a surety wishes to make payment without awaiting action by a
court, the amount of the bond must be reduced to the extent of any
payment made by the surety in good faith under the bond. Any payment must
be based on written claims received by the surety before any action is
taken by a court.
4. The surety may bring an action for interpleader against all
claimants upon the bond. If it does so, it shall publish notice of the
action at least once each week for 2 weeks in every issue of a newspaper
of general circulation in the county where the title agent or title
insurer has its principal place of business. The surety may deduct its
costs of the action, including attorney’s fees and publication, from its
liability under the bond.
5. Claims against a bond have equal priority, and if the bond is
insufficient to pay all claims in full, they must be paid on a pro rata
basis. Partial payment of claims is not full payment, and any claimant
may bring an action against the title agent or title insurer for the
unpaid balance.
(Added to NRS by 1999, 3813 )
SUPERVISION; DISCIPLINARY ACTION
1. The Commissioner shall establish by regulation the fees to be
paid by title agents and title insurers for their supervision and
examination by the Commissioner or his representative.
2. In establishing the fees pursuant to subsection 1, the
Commissioner shall consider:
(a) The complexity of the various examinations to which the fees
apply;
(b) The skill required to conduct such examinations;
(c) The expenses associated with conducting such examinations and
preparing reports; and
(d) Any other factors the Commissioner deems relevant.
3. The Commissioner shall, with the approval of the Commissioner
of Financial Institutions, adopt regulations prescribing the standards
for determining whether a title insurer or title agent has maintained
adequate supervision of a title agent or escrow officer pursuant to the
provisions of this chapter.
(Added to NRS by 1991, 1855; A 1993, 580; 2001, 2228 )
1. The Commissioner may refuse to license any title agent or
escrow officer or may suspend or revoke any license or impose a fine of
not more than $500 for each violation by entering an order to that
effect, with his findings in respect thereto, if upon a hearing, it is
determined that the applicant or licensee:
(a) In the case of a title agent, is insolvent or in such a
financial condition that he cannot continue in business with safety to
his customers;
(b) Has violated any provision of this chapter or any regulation
adopted pursuant thereto or has aided and abetted another to do so;
(c) Has committed fraud in connection with any transaction governed
by this chapter;
(d) Has intentionally or knowingly made any misrepresentation or
false statement to, or concealed any essential or material fact known to
him from, any principal or designated agent of the principal in the
course of the escrow business;
(e) Has intentionally or knowingly made or caused to be made to the
Commissioner any false representation of a material fact or has
suppressed or withheld from him any information which the applicant or
licensee possesses;
(f) Has failed without reasonable cause to furnish to the parties
of an escrow their respective statements of the settlement within a
reasonable time after the close of escrow;
(g) Has failed without reasonable cause to deliver, within a
reasonable time after the close of escrow, to the respective parties of
an escrow transaction any money, documents or other properties held in
escrow in violation of the provisions of the escrow instructions;
(h) Has refused to permit an examination by the Commissioner of his
books and affairs or has refused or failed, within a reasonable time, to
furnish any information or make any report that may be required by the
Commissioner pursuant to the provisions of this chapter;
(i) Has been convicted of a felony relating to the practice of
title agents or any misdemeanor of which an essential element is fraud;
(j) In the case of a title agent, has failed to maintain complete
and accurate records of all transactions within the last 7 years;
(k) Has commingled the money of other persons with his own or
converted the money of other persons to his own use;
(l) Has failed, before the close of escrow, to obtain written
instructions concerning any essential or material fact or intentionally
failed to follow the written instructions which have been agreed upon by
the parties and accepted by the holder of the escrow;
(m) Has failed to disclose in writing that he is acting in the dual
capacity of escrow agent or agency and undisclosed principal in any
transaction;
(n) In the case of an escrow officer, has been convicted of, or
entered a plea of guilty or nolo contendere to, any crime involving moral
turpitude; or
(o) Has failed to obtain and maintain a copy of the executed
agreement or contract that establishes the conditions for the sale of
real property.
2. It is sufficient cause for the imposition of a fine or the
refusal, suspension or revocation of the license of a partnership,
corporation or any other association if any member of the partnership or
any officer or director of the corporation or association has been guilty
of any act or omission directly arising from the business activities of a
title agent which would be cause for such action had the applicant or
licensee been a natural person.
3. The Commissioner may suspend or revoke the license of a title
agent, or impose a fine, if the Commissioner finds that the title agent:
(a) Failed to maintain adequate supervision of an escrow officer
title agent he has appointed or employed.
(b) Instructed an escrow officer to commit an act which would be
cause for the revocation of the escrow officer’s license and the escrow
officer committed the act. An escrow officer is not subject to
disciplinary action for committing such an act under instruction by the
title agent.
4. The Commissioner may refuse to issue a license to any person
who, within 10 years before the date of applying for a current license,
has had suspended or revoked a license issued pursuant to this chapter or
a comparable license issued by any other state, district or territory of
the United States or any foreign country.
(Added to NRS by 1985, 1822; A 1991, 1857; 1997, 3034; 1999, 2815
; 2003, 2733 )
1. In addition to the grounds provided in NRS 680A.200 for insurers generally, the Commissioner may
refuse to license any title insurer or may suspend any license or impose
a fine of not more than $500 for each violation by entering an order to
that effect, with his findings in respect thereto, if upon a hearing, it
is determined that the applicant or licensee:
(a) Has committed fraud in connection with any transaction governed
by this chapter;
(b) Has failed without reasonable cause to furnish to the parties
of an escrow their respective statements of the settlement within a
reasonable time after the close of escrow;
(c) Has failed without reasonable cause to deliver, within a
reasonable time after the close of escrow, to the respective parties of
an escrow transaction any money, documents or other properties held in
escrow in violation of the provisions of the escrow instructions;
(d) Has commingled the money of others with his own or converted
the money of others to his own use;
(e) Has failed, before the close of escrow, to obtain written
instructions concerning any essential or material fact or intentionally
failed to follow the written instructions which have been agreed upon by
the parties and accepted by the holder of the escrow;
(f) Has failed to disclose in writing that he is acting in the dual
capacity of escrow agent or agency and undisclosed principal in any
escrow transaction; or
(g) Has failed to maintain adequate supervision of an escrow
officer or title agent whom he has certified pursuant to subsection 3 of
NRS 692A.110 .
2. The Commissioner may refuse to issue a license to any person
who, within 10 years before the date of applying for a current license,
has had suspended or revoked a license issued pursuant to this chapter or
a comparable license issued by any other state, district or territory of
the United States or any foreign country.
(Added to NRS by 1985, 1824; A 1991, 1859)
1. If the Commissioner ascertains that the assets or capital of
any title agent are impaired or that a title agent’s affairs are in an
unsafe condition, he may immediately take possession of all the property,
business and assets of the title agent which are located in this state
and retain possession of them pending further proceedings provided for in
this chapter.
2. If the board of directors or any officer or person in charge of
the offices of such a title agent refuses to permit the Commissioner to
take possession of the property, the Commissioner shall communicate that
fact to the Attorney General. Thereupon the Attorney General shall
immediately institute such proceedings as may be necessary to place the
Commissioner in immediate possession of the property of the title agent.
The Commissioner thereupon shall make or cause to be made an inventory of
the assets and known liabilities of the title agent.
3. The Commissioner shall file one copy of the inventory in his
office and one copy in the office of the clerk of the district court of
the county in which the principal office of the title agent is located
and shall mail one copy to each stockholder, partner, officer or
associate of the agent at his last known address.
4. The clerk of the court with which the copy of the inventory is
filed shall file it as any other case or proceeding pending in the court
and shall give it a docket number.
(Added to NRS by 1991, 1856)
1. The officers, directors, partners, associates or stockholders
of the title agent may, within 60 days after the date the Commissioner
takes possession of the property, business and assets, make good any
deficit which may exist or remedy the unsafe condition of its affairs.
2. At the expiration of such time, if the deficiency in assets or
capital has not been made good or the unsafe condition remedied, the
Commissioner may apply to the court to be appointed receiver and proceed
to liquidate the assets of the title agent which are located in this
state in the same manner as now provided by law for liquidation of a
private corporation in receivership.
3. No other person may be appointed receiver by any court without
first giving the Commissioner reasonable notice of his application.
4. The inventory made by the Commissioner and all claims filed by
creditors are open at all reasonable times for inspection and any action
taken by the receiver upon any of the claims is subject to the approval
of the court before which the cause is pending.
5. The expenses of the receiver and compensation of counsel, as
well as all expenditures required in the liquidation proceedings, must be
fixed by the Commissioner subject to the approval of the court, and, upon
certification of the Commissioner, must be paid out of the money that he
possesses as receiver.
(Added to NRS by 1991, 1856)
1. Each title insurer may:
(a) Engage in title insurance business if licensed to do so by the
Commissioner.
(b) Take action incidental to the making of a contract or policy of
title insurance, directly or through a title agent or escrow officer
employed by the title insurer, including the conducting or holding of
money in escrow, making settlements and closing transactions.
(c) Provide any other service related or incidental to the sale and
transfer of property if it has filed notice with the Commissioner of its
intention to provide the service, and the Commissioner has not
disapproved the service within 30 days after his receipt of the notice.
(d) Invest in title plants.
2. No title insurer may engage in the business of guaranteeing the
obligations of other persons.
3. Each title insurer shall, no later than February 1 of each
calendar year, certify to the Commissioner the title agents and escrow
officers it employs or appoints, including title agents and escrow
officers employed by a title agent whom it has appointed. Each title
insurer is responsible for and shall supervise the acts of each person
that is required to be certified pursuant to this section.
(Added to NRS by 1977, 979; A 1985, 1826; 1991, 1859)
1. A title agent or title insurer shall notify the Division in
writing within 10 days after any change in the name or the location of
the business of the agent or insurer or any change of association by the
holder of a license as an escrow officer. Upon the surrender of the
existing license and payment of the required fee, the Division shall
issue a new license to the agent or insurer for the unexpired term of the
license.
2. An escrow officer who transfers his association must apply to
the Division for the reissuance of his license. The Division shall
reissue the license for the unexpired term upon application and payment
of the required fee if:
(a) The transfer is into an association with a licensed title agent
or title insurer; and
(b) The agent or insurer certifies that the escrow officer is
employed or will be employed by the agent or insurer.
3. Failure to give notice as required by this section constitutes
cause for the imposition of a fine not to exceed $500 against the
licensee or the suspension or revocation of his license.
(Added to NRS by 1985, 1824; A 1991, 1633; 1993, 1921)
1. The Commissioner shall classify as confidential the financial
statements of a title agent, escrow officer and title insurer and those
records and information obtained by the Division which:
(a) Are obtained from a governmental agency upon the express
condition that they remain confidential.
(b) Consist of information compiled by the Division in the
investigation of possible violations of this chapter. This paragraph does
not limit examination by the Legislative Auditor or any other person
pursuant to a court order.
2. The contents of the file for an escrow are confidential and,
subject to the rights to discover the contents by subpoena or other
lawful process, must not be disclosed without the express written consent
of one party of the escrow other than the holder of the escrow.
(Added to NRS by 1985, 1825; A 1991, 1633; 1993, 1921)
1. Each title insurer shall file with the Commissioner all rate
schedules, schedules of charges and all forms, including:
(a) Preliminary reports of title.
(b) Binders for insurance and commitments to insure.
(c) Letters of indemnity.
(d) Policies of insurance or guaranty.
(e) Terms and conditions of insurance coverage or guarantee which
relate to title to any interest in property.
2. A title insurer need not file:
(a) Reinsurance contracts and agreements.
(b) Closing letters.
(c) Specific defects in title which may be ascertained from an
examination of the risk and excepted in reports, binders, commitments or
policies, or any affirmative assurances of the title insurer with respect
to those defects, whether given by endorsement or otherwise.
(d) Specific exceptions from coverage by reason of limitations upon
the examination of the risk imposed by the applicant for insurance or
through failure of the applicant to provide data requisite to a judgment
of insurability.
3. Unless the Commissioner disapproves a form or schedule within
30 days after it is filed in his office, the form or schedule is approved.
4. No form or schedule may be used until it is approved by the
Commissioner.
5. No title insurer or title agent may make or impose any charge
for premium, escrow, settlement or closing services when performed in
connection with the issue of a title insurance policy except in
accordance with the schedule of charges filed with the Commissioner as
required by this section.
6. A title insurer or title agent shall not charge a fee for any
statement or tax return regarding payments of interest which federal law
requires the insurer or agent to furnish and file.
(Added to NRS by 1977, 979; A 1989, 1067; 1993, 2335)
1. Every title insurer and every title agent shall print and make
available to the public the schedule of fees and charges filed with the
Commissioner.
2. The schedule:
(a) Shall show to the public the total premium, for each type of
policy regularly issued by the insurer, either by a statement of the
particular charge for each type of policy in given amounts of coverage or
by a statement of the charge per unit of the amount of coverage, or a
combination of the two.
(b) May include a statement that additional charges are made when
unusual conditions of title are encountered or when special or unusual
risks are insured against and that additional charges are made for
special services rendered in connection with the issuance of a policy,
the handling of an escrow or the performance of other service.
(c) May provide different fees or changes for policies covering
property in different counties, and for other services rendered in
different counties, or separate schedules may be adopted for policies
covering property in different counties, and for other services rendered
in different counties.
3. Every title insurer and title agent shall file with the
Commissioner the schedule of fees and charges and every modification
thereof which it proposes to use. The filing shall state the effective
date thereof which shall be not less than 30 days after the date of the
filing. The Commissioner may by order suspend or modify the requirement
of filing as to a specific service, the charges for which cannot
practically be determined before the service is performed.
4. A title insurer may be a member or subscriber and use the
services of a title insurance rating organization, and engage in joint
underwriting and joint reinsurance of title insurance risks, in the same
manner, with the same effect, and subject to the same applicable terms
and conditions as provided with respect to property and casualty
insurance under chapter 686B of NRS (rates
and rating organizations).
(Added to NRS by 1977, 979)
1. The schedules provided for in NRS 692A.130 shall:
(a) Be printed in type not smaller than 10-point;
(b) Be dated to show the date they became effective; and
(c) So long as they are effective, be kept at all times readily
available to the public and prominently displayed in a public place in
each of the offices of the title insurer or title agent in this state,
and in each of the offices of any person authorized to issue the policy
of title insurance of the insurer, or to perform the service of an
insurer or title agent in the particular county to which they relate.
2. On request, copies of the schedules shall be furnished to the
public.
3. All or any part of any schedule may be changed or amended at
any time or from time to time. Each change or amendment shall be printed
and dated to show the effective date of the change or amendment. No
change or amendment shall become effective until at least 30 days after
it has been filed with the Commissioner and been displayed in the offices
mentioned in subsection 1 in the same manner as provided for the display
of schedules, and no change or amendment increasing fees or charges
applies to policies or services ordered prior to the effective date of
the change or amendment.
4. Each title insurer and each title agent shall keep a complete
file of its schedules and of all changes and amendments thereto until at
least 5 years after they have ceased to be in effect, and the file shall
be available for inspection by the Commissioner at any appropriate time.
(Added to NRS by 1977, 980)
RESERVES, RISKS & PREMIUMS
1. Each domestic title insurer shall establish and at all times
maintain a reserve against:
(a) Unpaid losses; and
(b) Loss expenses,
Ê and shall calculate the reserves by making a careful estimate in each
case of the loss and loss expense likely to be incurred by reason of each
claim presented upon receiving notice from or on behalf of the insured of
a title defect in or lien or adverse claim against the title of the
insured which may result in a loss or cause expense to be incurred for
the proper disposition of the claim.
2. Reserves required by this section may be revised from time to
time and shall be redetermined at least once each year.
3. Amounts set aside in reserves in any year shall be deducted in
determining the net profit of the year of the insurer.
(Added to NRS by 1977, 981)
1. Each domestic title insurer shall establish and maintain an
unearned premium reserve composed of the unearned portions of premiums
due or received, which shall be charged as a reserve liability of the
insurer in determining its financial condition.
2. The unearned premium reserve shall be retained and held by the
title insurer for the protection of holders of policies which have not
expired. Except as provided in this section, assets equal in value to the
unearned premium reserve are not subject to distribution among depositors
or other creditors or stockholders of the insurer until all claims of
policyholders or holders of other title insurance contracts have been
paid in full, and all liability on the policies or other title insurance
has been paid in full and discharged or lawfully reinsured.
3. Income from the unearned premium reserve need not be added to
that reserve.
4. Each title insurer shall place in its unearned premium reserve:
(a) The amount held in unearned premium reserve on July 1, 1977; and
(b) A sum equal to 5 percent of title insurance premiums collected
in each calendar year.
5. A title insurer shall release from the unearned premium reserve
and restore to net profits a sum equal to 5 percent of the amount added
to the reserve during a calendar year on July 1 of the year following the
year in which the sum was added, and an additional 5 percent shall be
released from the reserve on each succeeding July 1 until the entire
amount for that year has been restored to net profits.
(Added to NRS by 1977, 981)
Each foreign or alien title
insurer licensed to transact title insurance business in this state shall
maintain the same reserves as are required of domestic insurers, unless
the laws of the jurisdiction of domicile of the insurer requires a higher
amount.
(Added to NRS by 1977, 981)
1. The net retained liability of any title insurer for a single
risk, whether assumed directly or as reinsurance, may not exceed 50
percent of the sum of the capital, surplus, unearned premium reserve and
voluntary reserves less the value assigned to its title plants, all as
shown in the most recent report of the insurer which is on file in the
Office of the Commissioner.
2. The Commissioner may waive the limitation of this section for a
particular risk upon application of the insurer and for good cause shown.
(Added to NRS by 1977, 983)
1. If the premiums and charges received from any one source
through personal or controlled insurance exceed 25 percent of the total
premiums and charges received by a title insurer during a calendar year,
or if the premiums and charges received from all personal and controlled
insurance exceed 50 percent of the total premiums and charges received by
the title insurer during the calendar year, the excess of those
percentages is an unlawful rebate under NRS 686A.130 .
2. “Personal or controlled insurance” means a policy of title
insurance under which one of the following is an insured, or the loss is
payable to one of the following:
(a) The title insurer who issued the policy or any of the following:
(1) Any person who owns or controls a majority of the voting
stock or a controlling interest, directly or indirectly, in the title
insurer;
(2) A corporation which is directly or indirectly controlled
by a person who also controls the title insurer; or
(3) A corporation which makes consolidated returns for
federal income tax purposes with a title insurer or with a corporation
which is listed in subparagraph (1) or (2) of this paragraph.
(b) A title insurance agent who is a natural person, his spouse,
any person related to him within the second degree by blood or marriage,
and:
(1) If his employer is a natural person, his employer, his
employer’s spouse and any person related to his employer within the
second degree by blood or marriage;
(2) If his employer is a corporation, any person who owns or
controls a majority of the voting stock or a controlling interest in the
corporation, either directly or indirectly; or
(3) If his employer is a partnership or association, any
person owning an interest in the partnership or association.
(c) A title insurance agent which is a corporation, and:
(1) Any person who owns or controls, directly or indirectly,
a majority of the voting stock or controlling interest in the corporation;
(2) Any corporation which is directly or indirectly
controlled by a person who also controls the title insurance agent; or
(3) Any corporation which makes consolidated returns for
federal income tax purposes with any corporation described in
subparagraph (1) or (2) of this paragraph.
3. Interest which is held by an entity in a fiduciary capacity for
the true or beneficial owner of the property need not be included in
determinations of which insurance is personal or controlled.
(Added to NRS by 1977, 983)
Nothing in this
chapter prohibits the division of rates and charges between or among:
1. A title insurer and its agent;
2. Two or more title insurers;
3. One or more title insurers and one or more title agents; or
4. Two or more title agents,
Ê if the division of rates and charges does not constitute an unlawful
rebate under the laws of this State.
(Added to NRS by 1977, 984)
MISCELLANEOUS
1. A title insurer or title agent who issues a policy of
mortgagee’s title insurance upon a loan which is made simultaneously with
the purchase of all or part of the real property which secures the loan,
where no owner’s title insurance has been ordered shall, before the
disbursement of loan proceeds or the issuance of the mortgagee’s title
policy, inform the owner in writing that the title policy is to be
issued, that the policy does not protect the owner, and that the owner
may obtain title insurance for his protection. If the owner elects not to
purchase title insurance, the title insurer or title agent shall obtain
from him a statement in writing that the notice has been received and
that the owner waives the right to purchase title insurance. The
statement, together with the waiver, if any, shall be retained by the
title insurer or title agent for not less than 5 years after its receipt.
2. The form of the written notice and waiver shall be
substantially as follows:
NOTICE AND WAIVER
RE:........................................................................
...................................................................
(Address or Brief Property Description)
Notice is hereby given, as required in NRS 692A.210 , that a mortgagee’s title insurance policy
is to be issued to your mortgage lender. The policy does not afford title
insurance protection to you in the event of a defect or claim of defect
in title to the real estate which you are acquiring. An owner’s title
insurance policy affording title insurance protection to you in the
amount of your purchase price, or for the amount of your purchase price
plus the cost of any improvements which you anticipate making, may be
purchased by you. NRS 692A.210
requires that you sign the statement printed below if you do not wish to
purchase an owner’s title insurance policy.
.......................................................................
Name of Insurer Issuing Policy
We have received the foregoing notice, and waive our right to
purchase an owner’s title insurance policy for our protection.
.......................................................................
Mortgagors
(Added to NRS by 1977, 981)
1. No policy or contract of title insurance may be completed or
executed until the title insurer has or has caused to be:
(a) Conducted a reasonable search and examination of the title; and
(b) Determined the insurability of the title in accordance with its
established underwriting practices.
2. Each title insurer shall maintain records and evidence of its
search and examination and of its determination of insurability for a
period of not less than 5 years after the date of the policy or contract.
(Added to NRS by 1977, 982; A 1989, 585)
1. No person may engage in business as a title plant company
unless he has been granted a license to do so by the Commissioner.
2. An applicant for a license to conduct business as a title plant
company shall submit as part of his application:
(a) A copy of the proposed articles of incorporation or association
and bylaws, or the partnership agreement, which will govern the operation
of the business.
(b) A list of the owners or participants and the nature and degree
of their interest.
(c) A list of the persons who will operate the business, and their
addresses and qualifications, including experience.
(d) The conditions under which ownership or participation in the
business may be sold or acquired.
(e) A statement of whether or not title information will be
compiled for persons other than owners or participants in the business.
(f) A pro forma balance sheet and other financial information to
indicate the sufficiency of financing of the business.
(g) Other information which the Commissioner requires.
(h) A fee of $10.
3. If the Commissioner finds that:
(a) The business of the applicant will be sufficiently financed;
(b) The persons who will be operating the business are qualified;
(c) The rules of operation expressed in the articles of
incorporation or association and the bylaws, or in the partnership
agreement, will promote the efficiency of the operation of the owners or
participants; and
(d) The operation of the business will not unduly restrict
competition, he may issue a license to the applicant and permit
organization of the business.
4. A license issued under this section is valid for a period of 1
year, and may be renewed by the submission of any information which the
Commissioner requires and a fee of $10.
5. A license issued under this section may be suspended or revoked
by the Commissioner if:
(a) The licensee ceases to operate in a manner set forth in its
approved application.
(b) In the opinion of the Commissioner, the operation of the
business has become a restraint on competition or is not in the best
interests of the public.
(c) The licensee has not informed the Commissioner promptly of each
change in conditions set forth in its application.
6. The Commissioner shall give written notice to any licensee
whose license he intends to suspend or revoke, and the licensee shall be
granted a hearing if he requests it in writing within 15 days after the
receipt of the notice from the Commissioner. A decision of the
Commissioner after hearing is final administrative action.
7. This section does not apply to any person licensed under the
provisions of this chapter engaged in the business of a title plant
company when the operation is not in concert with others.
(Added to NRS by 1977, 982)
It is unlawful for any person to engage in or
carry on, or hold himself out as engaging in or carrying on, the business
of administering escrows without first obtaining a license as a title
insurer, title agent or escrow officer issued pursuant to this title or
as an escrow agent or escrow agency issued pursuant to chapter 645A
of NRS.
(Added to NRS by 1985, 1826)
”
1. Money deposited in escrow is not subject to execution or
attachment on any claim against the title insurer, title agent or escrow
officer.
2. A title insurer, title agent or escrow officer shall not
knowingly keep or cause to be kept any money in any bank, credit union or
other financial institution under any name designating the money as
belonging to his clients or those of another such person unless the money
was actually entrusted to him for deposit in escrow.
3. All money deposited in escrow to be delivered upon the close of
the escrow or upon any other contingency must be kept separate from money
belonging to the title insurer, title agent or escrow officer and must be
deposited in a financial institution that is federally insured or insured
by a private insurer approved pursuant to NRS 678.755 unless another financial institution has been
designated in writing in the instructions for the escrow. The money when
deposited must be designated as “trust funds” or “escrow accounts” or
under some other appropriate name indicating that the money is not the
money of the title insurer, title agent or escrow officer.
4. The Commissioner shall adopt regulations defining the term
“commingling” for the purposes of this chapter and prescribing acceptable
business practices for title agents and escrow officers for handling
money deposited in escrow.
(Added to NRS by 1985, 1825; A 1999, 1552 )
Each title
insurer and title agent shall keep at all times in his principal place of
business or branch office complete and suitable records of all escrow
transactions made by him, together with books, papers and data clearly
reflecting the financial condition of his business. Each title insurer
and title agent shall, at the times required by the Commissioner, make
and file with the Division a correct statement of his business in the
form and containing the data the Commissioner may require.
(Added to NRS by 1985, 1825; A 1991, 1633; 1993, 1921)
1. A title insurer, title agent or escrow officer shall not handle
an escrow, settlement or closing in which a qualified intermediary is
involved unless he first verifies that the qualified intermediary is
registered pursuant to NRS 645.606 to
645.6085 , inclusive.
2. The Real Estate Division of the Department of Business and
Industry shall, each calendar quarter, publish and distribute to each
title insurer, title agent and escrow officer licensed by the
Commissioner, a list of the qualified intermediaries registered pursuant
to NRS 645.606 to 645.6085 , inclusive. For the purposes of subsection 1,
the registration of a qualified intermediary may be verified by
ascertaining whether his name appears on the list most recently published
pursuant to this subsection or, if his name does not appear on that list,
by contacting the Real Estate Division.
3. As used in this section, “qualified intermediary” has the
meaning ascribed to it in NRS 645.606 .
(Added to NRS by 1995, 995)
The provisions of NRS 683A.341 , 683A.400 , 683A.451 to 683A.490 , inclusive, and 683A.520 apply to title insurers, title agents and
escrow officers.
(Added to NRS by 1985, 1825; A 1991, 1860; 2001, 2228 )
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