Bulletin: NE000001

Dear Associates:

Effective January 1, 2004, the state of Nebraska formally amended Title 210 of the Nebraska Administrative Code, Chapter 34 - Title Insurance.  The amended document may be accessed through the Nebraska Department of Insurance website (www.nol.org/home/ndoi) or directly at the following internet address:

www.sos.state.ne.us/local/regsearch/Rules/Insurance_Dept_of/Title-210/Chapter-34.pdf

The statutory authority for the Regulations can be found in the Nebraska Title Insurance Agent Act, at Sec. 44-19,116, Nebraska Revised Statutes, and the Nebraska Title Insurers Act, at Sec. 44-1993, Nebraska Revised Statutes.

You should familiarize yourself with the details of the amendment.  In particular, you should be aware of the following amendment effects:

A.  The amendment deletes outdated provisions of Nebraska title insurance regulation.

B.  It addresses the title insurer's (underwriter's) on-site review of the title insurance producers' business as required pursuant to Neb. Rev. Stat. §44-1993 and records required to be maintained by the title insurance producer (section 006). 

C.  It provides the standards and the form of the annual certified public accountant audit as required pursuant to Neb. Rev. Stat. §44-19,116 (section 007).

It should be carefully noted that:

• The insurer (underwriter) is required to report to the Department of Insurance any deficiencies revealed in the insurer's on-site review that are not or cannot be remedied within 5 business days.  The insurer is required to then file the on-site review with the Department and explain the areas of deficiency and any progress made by the agent in remedying the noted deficiency or deficiencies.
   
• If, in the course of the certified public accountant's audit, any resistance to the audit, any delay in providing information, or indication of defalcation must be reported immediately to the Department by the certified public accountant.

Official state of Nebraska responses to questions concerning Chapter 34 can be directed to Bruce Ramge, Chief of Market Regulation with the Nebraska Department of Insurance (telephone: 402-471-4607; email: bramge@doi.state.ne.us).

Should you have any questions, please contact your appropriate Stewart representative.