Background
The National Association of Insurance Commissioners (NAIC) is composed of state insurance regulatory agencies from around the country. It performs a variety of functions including the development of model laws; the development of accounting standards; the certification of state agencies; and the coordination of market conduct examinations. One of the NAIC's particularly important roles is the establishment of financial and operational reporting requirements for title insurance underwriters.
What is Required?
The NAIC has directed that the "Property Type" for each insured property must be reported by agents to their underwriters on all issued policies. The NAIC has established two types of property:
1. Residential - One-to-four family residences; and
2. Non-Residential - All other properties.
This requirement is effective on January 1, 2012. All policies issued on or after this date must identify the "Property Type" insured.
How Can You Comply?
PrepExpress® and all third-party software programs offering CATIC® policy forms contain a "Transmittal Form." When preparing a policy, select and complete the Transmittal Form being sure to mark the "Type of Property" portion. Submit the form with your policy. For agents not using software programs, paper Transmittal Forms are available upon request.
STEP 1:
STEP 2:
Questions
Please feel free to contact the VATC office with questions concerning this requirement.
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