Senate Bill No. 445
(By Senators Minard and Foster)
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[Introduced February 1, 2006; referred to the Committee
on Banking and Insurance.]
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A BILL to amend and reenact §33-11A-11 of the Code of West
Virginia, 1931, as amended, relating to providing notice of
availability of owner's title insurance.
Be it enacted by the Legislature of West Virginia:
That §33-11A-11 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 11A. INSURANCE SALES CONSUMER PROTECTION ACT.
§33-11A-11. Insurance in connection with a loan.
(a) If insurance is required as a condition of obtaining a
loan, the credit and insurance transactions shall be completed
independently and through separate documents.
(b) A loan for premiums on required insurance
shall may not be
included in the primary credit without the written consent of the
customer.
(c) No title insurance shall be issued until the title insurance company has obtained a title opinion of an attorney
licensed to practice law in West Virginia, which attorney is not an
employee, agent, or owner of the insured bank or its affiliates.
Said The attorney shall have conducted or cause to have conducted
under the attorney's direct supervision a reasonable examination of
the title. In no event shall the authority of a state-chartered
bank to sell title insurance exceed the authority of a nationally
chartered bank to do so.
(d) In connection with any transaction involving the purchase
or sale of an interest in residential real property in this state,
the settlement agent, before the disbursement of any funds, shall
obtain from the purchaser a statement in writing that he or she has
been notified by the settlement agent that the purchaser may wish
to obtain owner's title insurance coverage and of the general
nature of such coverage, and that the purchaser does or does not
desire such coverage. The notification shall include language that
the value of subsequent improvements to the property may not be
covered.
NOTE: The purpose of this bill is to provide notice of
availability of owner's title insurance to purchasers of
residential property.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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