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Appendix 1MARTIN O'MALLEY, Governor Ch. 683(iv) of the additional premium that will be required for purchaseof simultaneous title insurance in the buyer’s favor;(v) that the buyer’s title insurance will be subject only to thecontingencies and conditions contained in the binder, title report, and policy;(vi) of the buyer’s right to review a sample of the form of policyin which the contingencies and conditions will be inserted; [and](vii) that contains a clear statement of the contingencies thatmust be satisfied to make the buyer’s policy effective, if the buyer’s policy is noteffective on payment of the premium; AND(VIII) 1. THAT CLOSING OR SETTLEMENT PROTECTIONSHALL BE PROVIDED AGAINST THEFT OR MISUSE OF FUNDS BY THE TITLEINSURER OR ITS AGENT OR EMPLOYEE UNDER § 22–104 OF THIS SUBTITLE; ANDTHIS COVERAGE.2. OF THE PREMIUM THAT WILL BE CHARGED FOR(b) Before disbursing any funds, the person required to give notice undersubsection (a) of this section shall obtain from the buyer, at the time the persondelivers the notice, a statement in writing that the buyer has received the noticedescribed in subsection (a) of this section and that the buyer wants or does not wantowner’s title insurance.(c) (1) The person required to give notice under subsection (a) of thissection shall retain the original signed statement of receipt required by subsection (b)of this section and a copy of the notice required by subsection (a) of this section for 3years.(2) The statement of receipt and notice shall be available forinspection by the Commissioner on request.(d)IF THE PERSON FIRST ACCEPTING THE PREMIUM FAILS TO OBTAINFROM THE PARTY TO THE CLOSING OR SETTLEMENT THE STATEMENTREQUIRED BY SUBSECTION (B) OF THIS SECTION AT OR BEFORE THE CLOSINGOR SETTLEMENT AND DISBURSEMENT OF ANY FUNDS, THE FAILURE TO OBTAINTHE STATEMENT MAY BE CURED AT ANY TIME AFTER THE CLOSING ORSETTLEMENT AND BEFORE ACTUAL OR CONSTRUCTIVE NOTICE OF A POSSIBLECLAIM THAT WOULD HAVE BEEN COVERED BY CLOSING OR SETTLEMENTPROTECTION UNDER § 22–104 OF THIS SUBTITLE BY SENDING A CERTIFIEDLETTER, RETURN RECEIPT REQUESTED, TO THE PARTY AT THE PARTY’S LASTKNOWN ADDRESS.– 5 –
Appendix 1Ch. 6832012 LAWS OF MARYLAND(E) This section does not apply to a real estate transaction involving amortgage or deed of trust securing an extension of credit made:(1) solely to acquire an interest in or to carry on a business orcommercial enterprise; or22–104.(2) to any business or commercial organization.(A) IN THIS SECTION, “PROTECTED PARTY” MEANS A LENDER,BORROWER, SELLER, OR BUYER WHO IS A PARTY TO A TRANSACTION IN WHICH ATITLE INSURANCE POLICY WILL BE ISSUED.(B) A TITLE INSURER SHALL PROVIDE CLOSING OR SETTLEMENTPROTECTION TO A PROTECTED PARTY IN ACCORDANCE WITH THIS SECTION.(C) (1) THE CLOSING OR SETTLEMENT PROTECTION SHALLINDEMNIFY A PROTECTED PARTY AGAINST ONLY THE LOSS OF CLOSING ORSETTLEMENT FUNDS BECAUSE OF:(I)THEFT OR MISAPPROPRIATION OF SETTLEMENT FUNDSIN CONNECTION WITH A TRANSACTION IN WHICH A TITLE INSURANCE POLICYWILL BE ISSUED BY OR ON BEHALF OF THE TITLE INSURER; OR(II)FAILURE TO COMPLY WITH THE WRITTEN CLOSINGINSTRUCTIONS IF AGREED TO BY THE TITLE INSURER OR THE TITLE INSURER’SAPPOINTED PRODUCER.(2) THE INDEMNIFICATION UNDER PARAGRAPH (1) OF THISSECTION IS ONLY TO THE EXTENT THAT THE ACTION OR FAILURE RELATES TOTHE STATUS OF THE TITLE TO:(I)THAT INTEREST IN LAND; OR(II) THE VALIDITY, ENFORCEABILITY, AND PRIORITY OF THELIEN ON THE MORTGAGE OR DEED OF TRUST ON THAT INTEREST IN LAND.FOR:(D)INDEMNIFICATION UNDER THIS SECTION MAY NOT BE PROVIDED(1) LOSS OR IMPAIRMENT OF TRUST MONEY IN THE COURSE OFCOLLECTION OR WHILE ON DEPOSIT WITH A FINANCIAL INSTITUTION DUE TO– 6 –
Page 2 and 3: Report of the Study ofClosing or Se
Page 4 and 5: TABLE OF CONTENTSI. EXECUTIVE SUMMA
Page 6 and 7: Although in a minority of states an
Page 8 and 9: or misuse of closing or settlement
Page 10 and 11: (4) Division of Consumer Protection
Page 12 and 13: title insurance producer or agency
Page 14 and 15: As part of its Insurer Survey, the
Page 16 and 17: or dishonest practices, the underwr
Page 18 and 19: eported having a least one escrow a
Page 20 and 21: ond also may be purchased by an und
Page 22 and 23: 4. Other Protection Available to Un
Page 24 and 25: 1. Preventive MeasuresProducer Lice
Page 26 and 27: lender’s funds or documents. The
Page 28 and 29: In the event of the insolvency of a
Page 30 and 31: insurance task force. The informati
Page 32 and 33: in excess of 20 cents in claims on
Page 34 and 35: create an environment vulnerable to
Page 36 and 37: Appendix 1MARTIN O'MALLEY, Governor
Page 44 and 45: AppendixAppendix22MARTIN O’MALLEY
Page 46 and 47: Appendix 2c. If you answered “No
Page 48 and 49: Appendix 2Certification of Informat
Page 50 and 51: Appendix 2QUESTION #3Schedule BStat
Page 52 and 53: Appendix 3
Page 54 and 55: Appendix 3SURVEYTitle Insurance - C
Page 56 and 57: Appendix 3a. Does your title insura
Page 58 and 59: Appendix 3QUESTION # 2Schedule ADor
Page 60: Appendix 3QUESTION # 10Schedule CMi

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