Creation of Title Insurance Commission in Colorado Finally Realized
It has long been planned by Colorado lawmakers to have a Title Insurance Commission to set a body that will propose and advise rules to Marguerite Salazar; the state Insurance Commissioner. This commission will resolve issues on potential conflicts of interests that will exist between the insurance companies and the industry’s regulator.
The Title Companies in Colorado was under the oversight of Division of Insurance Commissioner. This is under the Division of Regulatory Agencies. Though the Title Insurance Commission has been created, the commissioner will still hold the right in the regulation of premium rates, licensing requirements and license issuance. The only difference is that the commissioner will have members who will have the voice on the new rules created by the commissioner, present rules for the commissioner’s approval and have the right to review the disciplinary actions which relates to the regulation of the title insurance trade.
The appointment of 9 members which embody the said commission was made by Governor John Hickenlooper. This has been done in the last legislative session in accordance of the Senate Bill 210.
The commission’s basic duty is to become Salazar’s advisory body. Its tasks are to advise, propose and suggest rules in the title insurance administration. However, all these will still be subjected for final approval to the appointed state insurance commissioner.
“I’m glad to witness the appointment of the Title Commission members”; stated Salazar. “With their presence and help, it will be easier to move on with the work in the improvement of title insurance business that will benefit both the consumers and the industry at the same time”, she added.
In accordance to the law regulating the Title Insurance Commission, Hickenlooper added 3 members who are working on title insurance companies for at least 5 years. One of them belongs to a company holding at least 500 million dollars asset. Another 3 title insurance agents are added to the team. They too have no less than 5 years working experience in a title insurance business. And another 3 who are appointed as members who represent the large public members. The last 3 members are not employed to any Denver Title Insurance companies at all. Each member belongs to different companies as set by the law in selecting Title Insurance members.
The Title Insurance Commission was created to correct unfair settlement practices in many title insurance companies. This will also work to give an end to whatever fraudulent practices done by some title insurance companies in Colorado.