Citations Affected: IC 27-7.
Synopsis: Title searches. Requires a title insurance company to
perform or cause to be performed a title search of real estate for a
mortgage secured by the real estate unless the mortgage: (1) is not more
than $50,000; (2) is subordinate to a prior mortgage where a title search
was conducted; and (3) is not a reverse mortgage. Requires a company
who does not perform a title search under this exception to first inform
the person obtaining the mortgage of the person's liability under the
title insurance policy.
Effective: July 1, 2002.
January 7, 2002, read first time and referred to Committee on Insurance and Financial
Institutions.
January 28, 2002, reported favorably _ Do Pass.
February 1, 2002, read second time, amended, ordered engrossed.
February 4, 2002, engrossed. Read third time, passed. Yeas 46, nays 4.
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
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.