§14.3 - Statutory Requirements and Regulations

• Jurisdiction: Washington

§14.3 STATUTORY REQUIREMENTS AND REGULATIONS

Title insurance companies doing business in Washington are regulated by a state agency, very similar to their regulation in most states in the western United States. Chapter 48.29 RCW applies to title insurers and their agents. These statutes provide that a title company must own and maintain a title plant in the county where it does business. That chapter and associated regulations provide that forms and rates must be filed with the Office of the Insurance Commissioner and define prohibited marketing and promotional practices. The solvency of title insurers is preserved for the benefit of policyholders through requirements that they post deposits with the Insurance Commissioner as a guaranty fund. RCW 48.05.340. Title insurers are subject to the same claims handling and bad faith statutes as are other insurers. See Ch. 48.30 RCW; Ch. 284-30 WAC.

(1) Qualifications of insurers

RCW 48.29.020 provides that a title insurer (1) be a stock corporation, (2) owns or leases and maintains a complete set of tract indexes of the county in which its principal office in Washington is located, and (3) maintains the capital and surplus requirements of RCW 48.05.340($2 million paid in stock or basic surplus, and $2 million additional surplus).

The title insurer is also referred to as an "underwriter" or "underwriting" insurance company, and its policies can be issued by an agent. An agent does not write insurance directly and cannot have the word "insurance" in its name. As with the insurer, however, RCW 48.29.160 requires an agent of a title insurer to own...