California Governor Arnold Schwarzenegger signed Senate Bill 133 into law last month. The bill, sponsored by the California Land Title Association (CLTA), goes into effect on January 1, 2009 and requires that title insurance sales people be registered with the state.
The new law provides the California Department of Insurance with the statutory authority to create a registration program for “title marketing representatives.” These representatives are defined as persons employed by a title insurer, underwritten title company, or escrow company whose “primary duty is to market, offer, solicit, negotiate, or sell title insurance.” In addition, SB 133 clarifies and significantly limits what may be spent by title marketing representatives – and the title companies themselves – in the marketing of title insurance products and services in California.

“SB 133 enhances consumer protection while maintaining the healthy,competitive title insurance marketplace in California,” stated CLTA EVP Craig Page. “The legislation is just the latest example of the industry’s effort to promote consumer choice in the title insurance market. The competitive market in California has led to title insurance rates that are below the national average according to Bankrate.com,” added Page.
Starting January 1st of the new year, the state’s Department of Insurance must develop an automated application process and provide staffing to accommodate the new registration program, CLTA said. The registration certification is good for three years and requires the applicant to be trained in Section 12404 of the state insurance code, which covers permitted expenditures as well as unlawful inducements for title agents. According to the bill’s author, state Senator Sam Aanestad (R-Grass Valley), the Section 12404 statute of the measure is designed to put an end to payoffs that often raise the cost of title insurance for new homeowners.
For more information on California’s SB 133, click here.