210 Neb. Admin. Code, ch. 34, § 006
Each title insurer authorized to do business in Nebraska shall adopt and utilize the following standards and procedures for the on-site review of title insurance agents as required by Neb. Rev. Stat. § 44-1993(3). Such standards shall be deemed minimum standards and will not preclude title insurers from applying more stringent or comprehensive procedures. On-site review documentation, work papers, summaries and reports shall be maintained by each title insurer for the period of at least four (4) years and shall be made available to the Director of Insurance upon request pursuant to the Insurers Examination Act, Neb. Rev. Stat. § 44-5901 et seq. A report shall be prepared by the title insurer at the completion of the on-site review setting forth the title insurer's findings on each item listed below as well as any additional items the title insurer includes in its on-site review. In the case of a title insurance agency on-site review, the title insurer shall include in the report a list of title insurance agents employed by said title insurance agency on the date of the on-site review. The report shall be maintained by the title insurer and provided to the Director of Insurance upon request. If the title insurer's on-site review indicates the title insurance agent is deficient in any of the areas listed below, the title insurer shall notify the Department within five (5) business days if the title insurance agent has not remedied or can not remedy the deficiency within that time. The title insurer shall file the on-site review report with the Director of Insurance and explain the areas of deficiency and the agent's progress made, if any, during the five-business day grace period.
Each on-site review shall include a review of the title insurer and title insurance agency/title insurance agent contracts to ensure (a) the contract sets forth the responsibilities of each party and, when both parties share the responsibility for a particular function, specifies the division of responsibilities and (b) the contract is up-to-date and properly executed.
Each on-site review shall include a review of compliance with Nebraska licensing requirements related to the title insurance agent, and abstractors, if applicable.
The title insurer shall obtain from the title insurance agent, or from the title insurance agency if the title insurance agent is employed by a title insurance agency, a statement of financial condition of the title insurance agent or title insurance agency as required pursuant to Neb. Rev. Stat. § 44-1993(2) and § 44-19,114(14) which includes an income statement and balance sheet showing the condition of the title insurance agent/agency affairs as of December 31 of the preceding year. This statement of financial condition shall be certified by the title insurance agent or the title insurance agency's designated agent as being a true and correct representation of the financial condition. The title insurer shall document its receipt of the title insurance agent's or title insurance agency's statement of financial condition in the title insurer's on-site review report.
Each on-site review shall include a review of management practices related to conflicts of interest, affiliated business arrangements, and regulatory compliance.
The title insurer shall review the title insurance agent's procedures to update and maintain title plant records, if applicable.
The title insurer shall establish underwriting standards to minimize claims or potential losses to insurers, lenders, and consumers. The title insurer shall conduct a random file review using an audit sample to ascertain the thoroughness and accuracy of the title insurance agent's search procedures.
If the title insurance agent has the authority to settle claims on behalf of the title insurer, the on-site review shall include a review of the agent's claims procedures to ensure timely review, proper investigation, adequate documentation, and resolution.
The on-site review shall include a review of the title insurance agent's files awaiting policy issuance to determine the average length of time between closing and the issuance of the title policy. The title insurer shall document whether the title insurance agent has appropriate follow-up procedures in place to request needed items after the closing, and whether the title insurance agent is actively using those procedures. The delay between the date all of the requirements to insure have been met and policy issuance shall be no longer than sixty (60) days.
The on-site review shall include an audit sample and review of issued policy files. The review of the sample should determine compliance with the following:
For those agents performing escrow, security settlement or closing services pursuant to Neb. Rev. Stat. § 44-19,116, the title insurer shall review the title insurance agent's closing procedures and shall include an audit sample of escrow closing files. The review shall include a determination of compliance with Neb. Rev. Stat. § 44-19,116 with the following:
210 Neb. Admin. Code, ch. 34, § 006