Sec. 31.04.22.06. Report

A. A title insurer shall file a report with the Commissioner within 45 calendar days after the completion of the on-site review.

B. The report shall address the following areas:

(1) The name, Maryland producer license number, and contact information of the principal agent or any insurance producer designated under Insurance Article, §10-106, Annotated Code of Maryland;

(2) The name and Maryland producer license number of any insurance producer associated with the principal agent;

(3) The principal agent’s escrow accounts and related practices, including a review to ensure that:

(a) Only licensed insurance producers exercise control over trust money;

(b) Premium monies are held in compliance with COMAR 31.03.03;

(c) Funds received by the principal agent are accurately accounted for in the books and records of the principal agent; and

(d) The principal agent’s escrow accounts have been properly reconciled as of the date of the completed on-site review and the trust deposits held on its behalf are reasonably ascertainable from the books of account and records of the principal agent.

(4) Except for transfers of money between the principal agent’s escrow or trust account and the principal agent’s operating account for the fees due the principal agent, transfers of money between principal agent’s accounts that contain or have contained trust money deposits;

(5) Discrepancies between receipts and disbursements;

(6) Compliance by the principal agent with the annual MAHT report requirement under COMAR 31.16.03.06;

(7) Information relating to escrow accounts or settlement, closing, or title indemnification conducted by a principal agent, or title insurance producer acting on behalf of the title insurer;

(8) The principal agent’s policy blank inventory;

(9) The principal agent’s failure to comply with the title insurer’s financial accounting requirements; and

(10) Any additional information requested by the Commissioner.

C. A title insurer is not precluded from providing a more comprehensive description of the on-site review.

D. The report shall contain:

(1) The certification from the principal agent required under Regulation .04B(7) of this chapter; and

(2) A copy of the express written consent required under Regulation .04B(5)(c) of this chapter, if premium monies are comingled with the principal agent’s personal funds.