BILL NUMBER: AB 1005	CHAPTERED  09/22/03

	CHAPTER  440
	FILED WITH SECRETARY OF STATE  SEPTEMBER 22, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2003
	PASSED THE SENATE  AUGUST 28, 2003
	AMENDED IN SENATE  AUGUST 26, 2003
	AMENDED IN SENATE  AUGUST 20, 2003

INTRODUCED BY   Assembly Member Dutra

                        FEBRUARY 20, 2003

   An act to add Section 12401.71 to the Insurance Code, relating to
title insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1005, Dutra.  Title insurance:  rates.
   Existing law prohibits a title insurer, underwritten title
company, or controlled escrow company from using any rate in the
business of title insurance before its effective date or before it
has been publicly displayed, as specified, for at least 30 days.
Existing law provides that no rate increase shall apply to title
policies or services that have been contracted for prior to the rate'
s effective date.
   This bill would provide that, notwithstanding the above
provisions, a title insurer, underwritten title company, or
controlled escrow company may use a new rate prior to 30 days after
the filing if the new rate results in a reduction from an existing
rate, the earlier effective date is set forth in the filing, and the
new rate has been publicly displayed and made readily available to
the public prior to its effective date.  It would provide that any
rate reduction shall be subject to regulation by the Insurance
Commissioner, as specified.
   The bill would require the Department of Insurance, 5 years from
the effective date of these provisions, and within existing
resources, to review the reduced rates authorized by these
provisions, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 12401.71 is added to the Insurance Code, to
read:
   12401.71.  (a) Notwithstanding Sections 12401.1 and 12401.7, a
title insurer, underwritten title company, or controlled escrow
company may use a new rate prior to 30 days after the filing if the
new rate results in a reduction from an existing rate, the earlier
effective date is set forth in the filing, and the new rate has been
publicly displayed and made readily available to the public prior to
its effective date.
   (b) Any rate reduction filed by a title insurer, underwritten
title company, or controlled escrow company pursuant to subdivision
(a) shall be subject to the authority of the commissioner as set
forth in this article and Article 6.7 (commencing with Section
12414.13).
   (c) Five years from the effective date of this section, and within
existing resources, the department shall review the reduced rates
authorized by this section to determine if they are inadequate or if
they increase the possibility of title insurers becoming insolvent.
This review shall be in addition to any other authorized by statute.