California Insurance Code

§ 12389

INS § 12389 Effective Jan 1, 2018Div. 2 · Part 6 · Ch. 1 · Art. 3.7

Statute text

(a)On and after July 1, 2016, an underwritten title company as defined in Section 12340.5 that is a stock corporation may, subject to subdivision (b), (1) engage in the business of preparing title searches, title reports, title examinations, or certificates or abstracts of title, upon the basis of which a title insurer writes title policies, and (2) conduct escrow services through business locations, as defined in Section 12340.13, in counties in which the underwritten title company is licensed to conduct escrow services regardless of the location of the real or personal property involved in the transaction.

(b)(1) Only a domestic corporation may be licensed under this section and no underwritten title company, as defined in Section 12340.5, may become licensed under this section, or change the name under which it is licensed or operates, unless it has first complied with Section 881.

(2)(A) Depending upon the county or counties in which the company is licensed to transact business, it shall maintain required minimum net worth and a bond or cash deposit as follows: Aggregate number of documents recorded and documents filed in the preceding calendar year in all counties where the company is licensed to transact business Number of documents Amount of required minimum net worth Amount of bond or cash deposit Less than 50,000 $ 75,000 $ 50,000 50,000 to 100,000 120,000 50,000 100,000 to 500,000 200,000 100,000 500,000 to 1,000,000 300,000 100,000 1,000,000 or more 400,000 100,000

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Legislative history

Amended by Stats. 2017, Ch. 534, Sec. 79. (AB 1699) Effective January 1, 2018.