Second Regular Session 112th General Assembly (2002)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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     SENATE ENROLLED ACT No. 168



     AN ACT to amend the Indiana Code concerning insurance.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 27-7-3-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. As used in this chapter and unless a different meaning appears from the context:
    (a) The term "title insurance" means a contract of insurance against loss or damage on account of encumbrances upon or defects in the title to real estate.
    (b) The term "company" shall mean and include any corporation, domestic or foreign, to which this chapter is applicable.
    (c) The term "department" shall mean the department of insurance of the state of Indiana.
    (d) The term "commissioner" shall mean the insurance commissioner.
     (e) The term "public record" has the meaning set forth in IC 5-14-3-2.
    (f) The term "title search" means a search and examination of the public records sufficient to determine:
        (1) ownership of;
        (2) encumbrances on;
        (3) liens on; and
        (4) defects in the title to;
the real estate that is the subject of the search.

    SECTION 2. IC 27-7-3-21 IS ADDED TO THE INDIANA CODE

AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 21. A company described in section 3 of this chapter that issues a title insurance policy shall perform or cause to be performed a title search for the real estate in conjunction with a mortgage secured by the real estate unless the mortgage meets all of the following requirements:
        (1) The principal amount of the mortgage is not more than         fifty thousand dollars ($50,000).
        (2) The mortgage is subordinate to a prior mortgage where         a title search was conducted and a title policy was issued.
        (3) The mortgage is not a reverse mortgage.


SEA 168 _ Concur

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