State of Utah Title & Escrow Commission Meeting

Meeting Information

State Office Building Suite 3110, Salt Lake City, UT 84114-6901 ♦ (801) 538-3800 ♦ Facsimile (801) 538-3829 ♦ www.insurance.utah.gov

State of Utah

GARY R. HERBERT

Governor

SPENCER J. COX Lieutenant Governor

TODD E. KISER Commissioner

Insurance Department

Date: November 18, 2019 Time: 9:00 AM Place: East Building, Copper Room or by telephone: 1-877-820-7831 passcode: 827555#

ATTENDEES TITLE & ESCROW COMMISSION

Chair, Nancy Frandsen (Insurer, Salt Lake County) James Swan (Insurer, Salt Lake County) Vice Chair, Alison McCoy (Agency, Tooele County) Chase Phillips (Agency, Weber County) Randy Smart (Public Member, Salt Lake County) Perri Babalis, AG Counsel - TEC

DEPARTMENT STAFF

Todd Kiser, Ins. Commissioner Reed Stringham, Deputy Comm. Tracy Klausmeier, P&C Dir. Randy Overstreet, Licensing Dir. Michael Covington, CE Specialist Adam Martin, MC Examiner Anna Weidauer, Notary Steve Gooch, PIO Recorder

AGENDA

General Session: (Open to the Public) • Welcome / Nancy Frandsen, Chair • Telephone Roll Call • Administer Oath of Office to New Commission Member / Anna Weidauer

o Darla Milovich • Recognize James Swan for Service to the Title & Escrow Commission / Commissioner Kiser • Adopt Minutes of Previous Meeting • Concurrence Reports / Reed

o Licenses o Penalties Lendmark Closing Services of Utah LLC (Docket #2019-4177) Synergy Title Insurance Agency LLC (Docket #2019-4181)

o Quarterly continuing education report February / May / August / November

• Board Duties & Responsibilities / Perri • Update on 2019 Goals

o ULTA report / Nancy o Real Estate Commission report / Nancy

• New Business o 2020 goals discussion / Nancy o Discussion on rates / Nancy

• Old Business o R592-15 and submission of escrow rates / Tracy

• Other Business o Five-Year Review of R592-16 / Steve

• Hot Topics Executive Session (None)

• Adjourn • Next Meeting: December 16, 2019 — Copper Room

2019 Meeting Schedule in Copper Room

Jan 14 Feb 11 Mar 11 Apr 15 May 28 Jun 10 - Canceled Jul 15 Aug 12 Sept 16 Oct 21 Nov 18 Dec 16

* bold dates denote quarterly required in-person meetings 2019 Goals

1. Continue making sure testing is relevant 2. Continue working with the Real Estate Commission 3. Continue working with the ULTA as a liaison 4. Increase awareness of wire fraud's effect on consumers and agencies

Title Agency LicensingOctober 2019

New Licenses:Agency ID Name Orig Issue Date Expire Date LOA192141 METRO TITLE AND ESCROW LLC 15-Oct-19 31-Oct-21 TE192141 METRO TITLE AND ESCROW LLC 15-Oct-19 31-Oct-21 TS192214 TAYLOR TITLE LLC 22-Oct-19 31-Oct-21 TE192214 TAYLOR TITLE LLC 22-Oct-19 31-Oct-21 TMR192214 TAYLOR TITLE LLC 22-Oct-19 31-Oct-21 TS

Renewed Licenses:Agency ID Name Orig Issue Date Expire Date LOA161824 ALTA TITLE INSURANCE AGENCY LLC 12-Oct-09 31-Oct-21 TE161824 ALTA TITLE INSURANCE AGENCY LLC 12-Oct-09 31-Oct-21 TS6447 CEDAR LAND TITLE INC 22-Feb-84 29-Feb-20 TE6447 CEDAR LAND TITLE INC 22-Feb-84 29-Feb-20 TS14832 INVESTORS TITLE INSURANCE AGENCY INC 5-Oct-05 31-Oct-21 TE14832 INVESTORS TITLE INSURANCE AGENCY INC 5-Oct-05 31-Oct-21 TS186290 PARADISE SETTLEMENT SERVICES LLC 11-Oct-17 31-Oct-21 TE186290 PARADISE SETTLEMENT SERVICES LLC 11-Oct-17 31-Oct-21 TMR186290 PARADISE SETTLEMENT SERVICES LLC 11-Oct-17 31-Oct-21 TS6332 RICH LAND TITLE COMPANY 6-Oct-77 31-Oct-21 TE6332 RICH LAND TITLE COMPANY 6-Oct-77 31-Oct-21 TMR6332 RICH LAND TITLE COMPANY 6-Oct-77 31-Oct-21 TS10682 RUDD AND HAWKES TITLE INSURANCE AGENCY LLC 30-Oct-01 31-Oct-21 TE10682 RUDD AND HAWKES TITLE INSURANCE AGENCY LLC 30-Oct-01 31-Oct-21 TS179564 SILK TITLE UTAH LLC 29-Oct-15 31-Oct-21 TE179564 SILK TITLE UTAH LLC 29-Oct-15 31-Oct-21 TS162042 SOUTH VALLEY TITLE INSURANCE INC. 13-Oct-09 31-Oct-21 TE162042 SOUTH VALLEY TITLE INSURANCE INC. 13-Oct-09 31-Oct-21 TS

Lapsed Licenses:Agency ID Name Orig Issue Date Expired Date LOA 14875 EPEK TITLE INSURANCE AGENCY LLC 17-Oct-05 31-Oct-19 TE14875 EPEK TITLE INSURANCE AGENCY LLC 17-Oct-05 31-Oct-19 TS

Reinstated Licenses:Agency ID Name Orig Issue Date Expire Date Reinstate LOA7690 DEER CREEK TITLE INSURANCE INC 1-Jun-99 30-Sep-21 ###### TE7690 DEER CREEK TITLE INSURANCE INC 22-Feb-00 30-Sep-21 ###### TS

Title Agent LicensingOctober 2019

New Licenses:Individual ID Last Name First Name Orig Issue Date Expire Date LOA1842953 BUSCH KENNEDY 23-Oct-19 31-Jul-22 TMR1842236 DEHAAS SHELBY 29-Oct-19 30-Sep-22 TE1843382 Donovan Tim 11-Oct-19 31-Jul-22 TE1843382 Donovan Tim 11-Oct-19 31-Jul-22 TS1846439 MAYER SUZANNE 24-Oct-19 30-Nov-21 TS1841998 OLSEN DALLAS 1-Oct-19 31-Aug-22 TE1847303 SPENCER DEREK 29-Oct-19 30-Sep-22 TMR1842244 VELASQUEZ JOSE 8-Oct-19 30-Nov-21 TE

Renewed Licenses:Individual ID Last Name First Name Orig Issue Date Expire Date LOA140833 ADAMS MANSA 18-Jun-15 31-Oct-21 TS140833 ADAMS MANSA 23-Feb-07 31-Oct-21 TE86916 ADAMS AMY 20-Feb-03 31-Oct-21 TE30924 ANDERSON DANIEL 8-Feb-93 31-Oct-21 TS30924 ANDERSON DANIEL 8-Feb-93 31-Oct-21 TE1709208 BAIRD JODY 9-Jun-17 31-Oct-21 TE87682 BAIRD CAREY 6-Mar-03 31-Oct-21 TS34243 BARBER MATTHEW 15-Oct-13 31-Oct-20 TS34243 BARBER MATTHEW 1-Oct-13 31-Oct-20 TE109108 BENNION MICHAEL 6-Jan-05 31-Oct-21 TE111771 BOWN BRITNEY 18-Mar-05 31-Oct-21 TE45724 BRINKERHOFF MICHAEL 26-Aug-93 31-Oct-21 TMR45724 BRINKERHOFF MICHAEL 3-Apr-01 31-Oct-21 TE67730 BRUUN KENNETH 13-Jul-01 31-Oct-21 TMR67730 BRUUN KENNETH 25-May-06 31-Oct-21 TE46042 CARTER CHARLOTTE 26-Sep-05 31-Oct-21 TE40723 CHRISTENSEN MICHELE 25-Jul-97 31-Oct-21 TMR1341050 CHRISTENSEN JILL 18-Oct-07 31-Oct-21 TE

Renewed Licenses:Individual ID Last Name First Name Orig Issue Date Expire Date LOA1625303 CHURCH MACKENZIE 22-Sep-15 31-Oct-21 TE84582 DOTY CHAD 28-Oct-04 31-Oct-21 TE84582 DOTY CHAD 3-Dec-02 31-Oct-21 TMR32535 Evans Alisha 20-Oct-98 31-Oct-21 TE33609 FIELDING TODD 5-Mar-99 31-Oct-21 TE32693 Fox Feigh Gina 10-Nov-98 31-Oct-21 TE75956 GILL NATALIE 10-Apr-02 31-Oct-21 TE1693836 GUBLER ALISA 17-Mar-17 31-Oct-21 TE32576 HALVORSEN SCOTT 17-Jul-96 31-Oct-21 TE32576 HALVORSEN SCOTT 24-Mar-87 31-Oct-21 TS32934 HANSEN SHAWN 29-Sep-83 31-Oct-21 TS1467133 HAWKES TYLER 15-Sep-11 31-Oct-21 TS1467133 HAWKES TYLER 15-Sep-11 31-Oct-21 TE87821 HERBERT BRETT 17-Mar-03 31-Oct-21 TE140482 HOLGREEN DENISE 22-Jan-07 31-Oct-21 TE111337 HOLMES SHERRY 11-Mar-05 31-Oct-21 TMR13973 HUGGINS DAWN 18-Feb-00 31-Oct-21 TE13973 HUGGINS DAWN 9-Nov-93 31-Oct-21 TMR30510 HUTCHINGS STEPHANIE 20-May-96 31-Oct-21 TE30510 HUTCHINGS STEPHANIE 18-Oct-93 31-Oct-21 TS37901 KATTER BRENT 7-Aug-07 31-Oct-21 TS1510804 KLASZKY MARIE 9-Nov-12 31-Oct-21 TE7745 MAX JOHN 6-Apr-79 31-Oct-21 TS7745 MAX JOHN 6-Apr-79 31-Oct-21 TE35842 MCKINNON JON 19-Apr-93 31-Oct-21 TS35842 MCKINNON JON 19-Apr-93 31-Oct-21 TE144598 MILLER REBEKAH 24-Apr-07 31-Oct-21 TE119884 MOSBY KIMBERLY 18-Jun-10 31-Oct-21 TS119884 MOSBY KIMBERLY 13-Oct-05 31-Oct-21 TE1702830 MUIR JACQUELINE 31-Mar-17 31-Oct-21 TE142835 MURDOCK CHANDLER 8-May-07 31-Oct-21 TE142835 MURDOCK CHANDLER 8-May-07 31-Oct-21 TS

Renewed Licenses:Individual ID Last Name First Name Orig Issue Date Expire Date LOA110271 Muhlestein Kimberly 23-Mar-05 31-Oct-21 TE34439 NIXON ANDREA 2-Jun-94 31-Oct-21 TE1622086 POLLOCK CHRISTINA 22-Nov-16 31-Oct-21 TS30132 ROBERTS THOMAS 2-Oct-95 31-Oct-21 TMR30132 ROBERTS THOMAS 21-Feb-03 31-Oct-21 TE36358 ROBINSON CALVIN 30-Apr-09 31-Oct-21 TS36358 ROBINSON CALVIN 18-Dec-92 31-Oct-21 TE114312 ROWELL ERIKA 26-May-05 31-Oct-21 TS114312 ROWELL ERIKA 18-Dec-13 31-Oct-21 TE87477 SHIRA JENNIFER 7-Mar-03 31-Oct-21 TE30784 SMITH MICHAEL 22-Nov-94 31-Oct-21 TE30784 SMITH MICHAEL 22-Nov-94 31-Oct-21 TS140606 SPARKS CHRIS 10-Feb-09 31-Oct-21 TE140606 SPARKS CHRIS 24-Jan-07 31-Oct-21 TMR1690782 STEPHENSON LORI 22-Dec-16 31-Oct-21 TS53885 SUAFILO PAUL 1-Oct-98 31-Oct-21 TMR43278 THOMPSON JAY 12-Apr-96 31-Oct-21 TE95254 VEALEY JONATHAN 17-Oct-03 31-Oct-21 TS44134 VEST LORI 13-Oct-99 31-Oct-21 TE44518 WEBB NATHAN 25-Sep-01 31-Oct-21 TE32507 WILLMORE MICHAEL 11-Oct-89 31-Oct-21 TS1677172 WOODY JACQUELINE 30-Nov-16 31-Oct-21 TS35658 WRAY JOSLYN 21-Dec-04 31-Oct-21 TE

Lapsed Licenses:Individual ID Last Name First Name Orig Issue Date Expired Date LOA1690666 BACKUS CODY 18-Jan-17 30-Sep-19 TE1690650 BAILEY DUSTY 20-Dec-16 30-Sep-19 TE1718321 BIRD BECKY 4-Aug-17 30-Sep-19 TE1699797 HARVEY JENNIFER 9-Mar-17 30-Sep-19 TMR46422 IVINS JAMES 29-Apr-85 30-Sep-19 TE46422 IVINS JAMES 29-Apr-85 30-Sep-19 TS

Lapsed Licenses:Individual ID Last Name First Name Orig Issue Date Expired Date LOA1391261 JOHNSON BLAIN 10-Jun-09 30-Sep-19 TS1391261 JOHNSON BLAIN 10-Jun-09 30-Sep-19 TE34946 MAC FARLANE DAVID 28-Jul-75 30-Sep-19 TE34946 MAC FARLANE DAVID 28-Jul-75 30-Sep-19 TS1522713 MOFFITT JONATHAN 10-Jun-13 30-Sep-19 TS1522713 MOFFITT JONATHAN 3-Jun-13 30-Sep-19 TE1691136 SCHROEPPEL COLIN 6-Jan-17 30-Sep-19 TMR93822 SEAMAN JEFFREY 29-Aug-03 30-Sep-19 TE89392 TRAN YVONNE 24-Apr-03 30-Sep-19 TMR

Reinstated Licenses:Individual ID Last Name First Name Orig Issue Date Expire Date Reinstated Date LOA35384 HOLBROOK CLAY 1-Sep-69 30-Sep-21 30-Oct-19 TE35384 HOLBROOK CLAY 1-Sep-69 30-Sep-21 30-Oct-19 TS45621 PERRETT PATRICK 23-Aug-99 30-Sep-21 23-Oct-19 TMR1389995 WATTS STEPHANIE 13-Apr-17 30-Sep-21 9-Oct-19 TE

Approval Date 4th Quarter 2019 Approved Title Courses Provider Name TotalsAug-19 8

08/01/19 SSU - Cybercrime Prevention Begins With You! Old Republic National Title 08/02/19 August 2019 Closer Training Southern Utah Title Co.08/02/19 Utah Mandatory Residential Cache Rich Assoc of Realtors08/07/19 Cemeteries, Ghosts & Zombies Webinar North American Title Ins Co08/14/19 Cannabis: A Budding Business Webinar North American Title Ins Co08/28/19 FIRPTA First American Title Ins Co08/29/19 Claims-The Devil is in the Details First American Title Ins Co

8/29/2019 It Really Happened Fulghum Inc

Sep-199/4/2019 Curing Title Defects First American Title Ins Co 17

9/11/2019 Texas Title Agents Rocking with RON American Land Title Assoc9/11/2019 Yes, There Are Claims in Title American Land Title Assoc9/11/2019 Keys to Success in a Commercial Transaction American Land Title Assoc9/11/2019 Wire Fraud Readiness American Land Title Assoc9/11/2019 RESPA 411 American Land Title Assoc9/11/2019 Lessons from a Former NSA Agent American Land Title Assoc9/11/2019 Mortgage Market Trends in Commercial Real Estate American Land Title Assoc9/11/2019 Revised ALTA Policy Forms - What's covered, What's Not? American Land Title Assoc9/11/2019 The Unexpected Benefits of Digital Closings American Land Title Assoc9/11/2019 Don't Get Burned: Solar Issues in Title American Land Title Assoc9/11/2019 Anatomy of a Title Claim American Land Title Assoc9/11/2019 Marijuana Minefields American Land Title Assoc9/11/2019 Preparing for Cyber Attacks American Land Title Assoc9/11/2019 Fraud: Everything Old is New Again American Land Title Assoc9/11/2019 Evaluating Technology Investments That Are Right For You American Land Title Assoc9/11/2019 Data Privacy Horizon American Land Title Assoc

Approval Date 4th Quarter 2019 Approved Title Courses Provider Name TotalsOct-19 13

10/1/2019 October 2019 Closer Training Southern Utah Title Ins Co10/4/2019 Boundary Line Changes Backman Title Services LTC10/4/2019 Filed Rates & Fiduciary Care & Fraud Prevention Backman Title Services LTC10/4/2019 Business Entity Authority & Best Practices for Bankruptcy Backman Title Services LTC10/8/2019 Fraud What Was Old Is New Again First Amerian Title Ins Co10/9/2019 Boundary and Land Use Legal Toolkit Nationl Insurance Business Inst10/9/2019 Information Security Training Cottonwood Title

10/14/2019 Curing Title Defects: Removing Them from your PR Attorneys Title Guaranty Fund Inc10/14/2019 SCR Nuts and Bolts Timeline New Changes Attorneys Title Guaranty Fund Inc10/23/2019 SSU - Taxes and Title Insurance Old Republic National Title10/24/2019 PACE Lien Pitfalls: Payoff Pointers and Claims Prevention North American Title Ins Co10/29/2019 Powers of Attorney First Amerian Title Ins Co10/29/2019 Estate And Family Planning Trusts First Amerian Title Ins Co

5-Year Reviews of Title Insurance Rules • R592-16: Prohibited Escrow Settlement Closing Transactions.

Utah statute requires all state agencies to do 5-year reviews of their rules to ensure they continue to make sense in a changing world.

What must be done at the November 18 Title & Escrow Commission meeting is to make a yes-or-no determination of whether the above rules should stay on the books.

Rules cannot be amended as part of a 5-year review, but the need for future amendments can be discussed for inclusion on a future agenda.

R592. Insurance, Title and Escrow Commission. R592-16. Prohibited Escrow Settlement Closing Transactions. R592-16-1. Authority. This rule is promulgated pursuant to Section 31A-2-404(2), which authorizes the Title and Escrow Commission (Commission) to make rules for the administration of the Insurance Code related to title insurance, including rules related to standards of conduct for a title insurer, agency title insurance producer or individual title insurance producer. R592-16-2. Purpose and Scope. (1) The purpose of this rule is to identify certain escrow practices involving two or more back to back sales and purchases of the same parcel of real property, which the Commission finds may violate the Insurance Code or rules, and therefore it is necessary to identify and prohibit such conduct. (2) These practices include sales and purchases of the same parcel of real property where funds from the final purchaser are received by the initial seller despite having no contractual privity and those where no statutory authority exists for the title insurer, agency title insurance producer, or individual title insurance producer to conduct one or more of such escrows under Section 31A-23a-406 and Rule R592-6-4(5). (3) This rule applies to all title insurers, agency title insurance producers, individual title insurance producers, and all employees, representatives, and any other party working for or on behalf of said entities whether as a full time or part time employee or as an independent contractor. R592-16-3. Definitions. For the purpose of this rule the Commission adopts the definitions as set forth in Section 31A-1-301 and the following: (1) "Land flip" means two or more escrows involving real property where the following circumstances exist: (a) Buyer B contracts with Seller A to buy a parcel of real property; (b) Buyer B then contracts with Buyer C to sell the same parcel of real property; and (c) Buyer B anticipates buying and selling the same parcel at or near the same time to Buyer C. R592-16-4. Permitted Escrows of Flip Transactions. Title insurers, agency title insurance producers, and individual title insurance producers are permitted to conduct escrows involving a land flip if each real estate transaction stands on its own and the following conditions are met: (1) Buyer B, in the transaction with Seller A, must use funds separate and distinct from the funds used by Buyer C as part of the transaction between Buyer B and Buyer C. R592-16-5. Prohibited Escrows of Flip Transactions. Except as allowed under R592-16-4, title insurers, agency title insurance producers, and individual title insurance producers are

prohibited from conducting any escrows involving a land flip. R592-16-6. Enforcement Date. The commissioner will begin enforcing the provisions of this rule 45 days from the effective date of the rule. R592-16-7. Severability. If any provision or clause of this rule or its application to any person or situation is held invalid, such invalidity may not affect any other provision or application of this rule which can be given effect without the invalid provision or application, and to this end the provisions of this rule are declared to be severable. KEY: escrow insurance flip Date of Enactment or Last Substantive Amendment: December 8, 2014 Authorizing, and Implemented or Interpreted Law: 31A-2-404(2)