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AppendixAppendix22MARTIN O’MALLEYGovernorANTHONY G. BROWNLt. GovernorTHERESE M. GOLDSMITHCommissionerKAREN STAKEM HORNIGDeputy CommissionerTHOMAS MARSHALLAssociate CommissionerCompliance and Enforcement200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202Direct Dial: 410-468-2217 Fax: 410-468-2245Email: tmarshall@mdinsurance.state.md.us1-800-492-6116 TTY: 1-800-735-2258www.mdinsurance.state.md.usDATE: August 7, 2012TO: Maryland Title InsurerRE: Attached Survey on the Closing or Settlement Protection Practices - StudyPlease return the attached completed Survey and certification to Adam Zimmerman by close ofbusiness on Friday, August 24, 2012. Information may be sent electronically to Mr.Zimmerman at titlesurvey@mdinsurance.state.md.us or through the mail to the MarylandInsurance Administration at the address listed in the letterhead above, attention AdamZimmerman.Questions may be directed to Thomas Marshall, Associate Commissioner for Compliance andEnforcement at (410) 468-2217 or tmarshall@mdinsurance.state.md.us.During the 2012 Maryland legislative session, the General Assembly enacted House Bill 866,Ch. 683, Acts 2012, (the “Act”) entitled “Title Insurance – Closing or Settlement ProtectionPractices – Study” for the purpose, as stated in the Act at § 1(a)(1), of requiring the “MarylandInsurance Commissioner to study closing or settlement protection practices of the title insuranceindustry, including mechanisms for, and associated costs of, compensating consumers, titleinsurers, mortgage lenders, and other parties for monetary losses that result from the theft,misappropriation, or misuse of funds held in escrow by a title insurance producer in connectionwith a real estate transaction; and (2) make recommendations for changes to the closing andsettlement protection practices of the title insurance industry in the State.”In accordance with the Act, which became effective on July 1, 2012, and pursuant to §2-205 ofthe Insurance Article, Md. Code Ann., (the “Insurance Article”), 1 and Code of MarylandRegulations (“COMAR”) 31.04.20, the Maryland Insurance Administration (“MIA”) is conductinga survey of all title insurers authorized to sell title insurance in Maryland. Your participation ismandatory. To the extent that certain data supplied to the Insurance Commissioner isconfidential commercial data protected under State Government Article §10-617(d) andInsurance Article §2-209(g), it will not be released except in the aggregate with data from othertitle insurers in a manner that does not permit an individual title insurer’s information to beidentified.Thank you in advance for your immediate attention to this request and your cooperation.1 Unless otherwise noted, all statutory citations are to the Insurance Article of the Annotated Code of Maryland.
Appendix 2SURVEYTitle Insurance – Closing or Settlement Protection Practices StudyDue by Close of Business on August 24, 2012Please note that, unless otherwise indicated, this Survey applies to Maryland title insurancebusiness only.Please respond to the following questions, provide the information requested, and return with thecompleted Survey the signed Certification Statement for the information provided.1. Does this title insurer possess a written policy and procedure for the annual audit of each of itsappointed producers as required by §10-121(k)?____Yes____Noa. If you answered “Yes” to Question # 1, please attach a copy of your written policy andprocedure to this Survey.b. If you answered “Yes” to Question #1, was this written policy and procedure in place fromDecember 1, 2009, through December 31, 2011. ____ Yes ____ Noi. If you answered “No” to Question 1(b), please attach a copy of the policy(ies) andprocedure(s) that was /were in place from December 1, 2009, through December31, 2011.c. If you answered “No” to Question #1, please attach a separate sheet of paper to thisSurvey explaining the procedure this title insurer utilizes in conducting an annual audit incompliance with the requirement in §10-121(k).i. Was the procedure described in 1(c) in place from December 1, 2009, throughDecember 31, 2011? ____ Yes ____ No2. Has this title insurer been the underwriter for a transaction in which there was a defalcation by anappointed title insurance producer or another person or entity, in any state in which this titleinsurer does business, between December 1, 2009, and December 31, 2011? ____Yes ____Noa. If you answered “Yes” to Question #2, please complete Schedule A of this Survey.3. In how many states is this title insurer authorized to do business? ____a. Please complete Schedule B of this Survey to identify the States in which business isconducted, the number of appointed title agencies, and the number of appointed titleproducers.4. Does this title insurer currently have a written policy and procedure designed to reduce thenumber and/or severity of defalcations? ___ Yes ___ Noa. If you answered “Yes” to Question #4, what is the effective date of the policy andprocedure? (Month and Year) _________b. If you answered “Yes” to Question #4, please attach the referenced policy and procedureto this Survey. Please also include copies of related bulletins, training materials, andupdated audit procedures, if any.
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 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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