BILL NUMBER: SB 641	CHAPTERED  07/26/99

	CHAPTER   187
	FILED WITH SECRETARY OF STATE   JULY 26, 1999
	APPROVED BY GOVERNOR   JULY 26, 1999
	PASSED THE ASSEMBLY   JULY 15, 1999
	PASSED THE SENATE   MAY 13, 1999
	AMENDED IN SENATE   APRIL 14, 1999

INTRODUCED BY   Senator Lewis

                        FEBRUARY 24, 1999

   An act to amend Sections 12383 and 12394 of the Insurance Code,
relating to title insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 641, Lewis.  Title insurance.
   Existing law provides that a domestic title insurer is any title
insurer organized under California law, and a foreign title insurer
is any title insurer organized under the laws of any other
jurisdiction.
   Existing law requires every domestic title insurer, as to its
title insurance department, to be subject to and to comply with all
requirements of the insurance laws and the rules and regulations of
the Insurance Commissioner.  Existing law authorizes a domestic title
insurer to invest its assets apportioned to its title insurance
department, and the accumulations therefrom, in the manner in which
the assets of title insurers are allowed by state law to be invested.

   This bill would make those provisions governing a domestic title
insurer's title insurance department also applicable to a foreign
title insurer's title insurance department.  It would also make other
technical changes.


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


  SECTION 1.  Section 12383 of the Insurance Code is amended to read:

   12383.  All amounts set aside in the unearned premium reserve of a
title insurer shall be held either as cash on hand or shall be
deposited or invested in those investments suitable for the
investment of trust funds, as provided in Section 16040 of the
Probate Code.
  SEC. 2.  Section 12394 of the Insurance Code is amended to read:
   12394.  A title insurer, as to its title insurance department,
shall be subject to and shall comply with all the requirements of the
insurance laws and the rules and regulations of the commissioner.
It may invest its assets apportioned to its title insurance
department, and the accumulations therefrom, in the manner in which
the assets of title insurers are allowed by the laws of this state to
be invested.