N.M. Admin. Code § 13.14.3.14 - DUTIES OF TITLE INSURERS WITH RESPECT TO AGENCIES

A. A title insurer shall not accept title insurance business from an agency unless there is in force a written agreement between the title insurer and the agency.

B. For each agency, the title insurer shall have on file a statement of financial condition. The statement shall include an income statement of title insurance business done during the preceding year and a balance sheet showing the condition of affairs as of the prior December 31. The agency shall certify the statement is true and correct.

C. A title insurer shall, at least annually, conduct a review of the underwriting, claims, and escrow practices of the agency which shall include a review of the title insurance policy form inventory and processing operations. If the agency does not maintain separate financial institution or trust accounts for each title insurer it represents, the title insurer shall verify that the funds held on its behalf are reasonably ascertainable from the books of account and records of the agency.

D. Within 30 days after executing or terminating an agreement with an agency, a title insurer shall provide written notification of the appointment or termination and the reason for the termination to OSI. The notice of appointment of an agency shall be made on a form prescribed or approved by OSI.

E. A title insurer shall maintain an inventory of all title insurance policy forms or title insurance policy numbers allocated to each agency.

F. Before entering into an agreement with an agency, a title insurer shall confirm that the agency has a current and appropriate license to transact title insurance business.

Notes

N.M. Admin. Code § 13.14.3.14

4-1-96; 13.14.3.14 NMAC - Rn, 13 NMAC 14.4.14, 5-15-00, Reserved by New Mexico Register, Volume XXXI, Issue 24, December 29, 2020, eff. 1/1/2021, Amended by New Mexico Register, Volume XXXIII, Issue 02, January 26, 2022, eff. 2/1/2022