CHAPTER 2552. ATTORNEY'S TITLE INSURANCE COMPANIES AND TITLE ATTORNEYS - Texas Statutes

INSURANCE CODE

TITLE 11. TITLE INSURANCE

SUBTITLE B. ORGANIZATION OF TITLE INSURANCE COMPANIES

CHAPTER 2552. ATTORNEY'S TITLE INSURANCE COMPANIES AND TITLE

ATTORNEYS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2552.001. PURPOSE; LEGISLATIVE INTENT. (a) Except as

otherwise expressly provided by this chapter, the purpose of this

chapter is to regulate an attorney's title insurance company in

the same manner as a title insurance company engaged in the

business of title insurance under this title.

(b) It is the express intent of the legislature to achieve the

purpose described by Subsection (a).

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.002. DEFINITIONS. In this chapter:

(1) "Attorney's title insurance" means:

(A) insurance that:

(i) insures, guarantees, or indemnifies an owner of real

property in this state, or another interested in the real

property, against loss or damage resulting from:

(a) a lien or encumbrance on or defect in the title to the real

property; or

(b) the invalidity of a lien on the real property; and

(ii) is issued only in connection with and as part of a real

property transaction and a title opinion of a title attorney; or

(B) any business that is substantially equivalent to the

insurance business described by Paragraph (A) and is conducted in

a manner designed to evade the provisions of this title.

(2) "Attorney's title insurance company" means a domestic

company organized and operated in accordance with this chapter

for the business of attorney's title insurance.

(3) "Title attorney" means an attorney who satisfies the

requirements of this chapter to act as a title attorney in this

state for an attorney's title insurance company.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.003. APPLICABILITY OF TITLE 11. Except as otherwise

expressly provided by this chapter:

(1) this title applies to an attorney's title insurance company;

(2) the provisions of this title that apply to a title insurance

company also apply to an attorney's title insurance company;

(3) the provisions of this title that apply to a title insurance

agent also apply to a title attorney; and

(4) any rule adopted or premium promulgated by the commissioner

under this title applies to an attorney's title insurance company

and to a title attorney.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.004. BUSINESS OF ATTORNEY'S TITLE INSURANCE. (a) The

business of attorney's title insurance may be engaged in only by

an attorney's title insurance company through a title attorney

appointed by an attorney's title insurance company.

(b) For purposes of this chapter, a person engages in the

business of attorney's title insurance if the person:

(1) as insurer, guarantor, or surety, makes or proposes to make

a contract or policy of title insurance; or

(2) transacts or proposes to transact any phase of title

insurance, including:

(A) soliciting;

(B) negotiating before executing a title insurance contract;

(C) executing a contract of title insurance; and

(D) insuring and transacting matters arising out of the contract

after the contract is executed, including reinsurance.

(c) A person engages in the business of attorney's title

insurance if the person engages in or proposes to engage in any

business that is substantially equivalent to the business of

attorney's title insurance as part of a real property transaction

and title opinion of a title attorney in a manner designed to

evade the applicable provisions of this title.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.005. OTHER TITLE INSURANCE COMPANIES AND AGENTS

PROHIBITED. A title insurance company, title insurance agent, or

escrow officer of a title insurance agent licensed under this

title to engage in the business of title insurance in this state

may not operate as an attorney's title insurance company or act

as a title attorney under this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.006. RECORD OF TITLE ATTORNEYS. The department shall

maintain a record of the name and address of each title attorney

in a manner that allows a person on request to conveniently

ascertain and inspect the title attorneys appointed by an

attorney's title insurance company authorized to engage in the

business of attorney's title insurance in this state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.007. OTHER PREMIUM OR FEE PROHIBITED. Attorney's

title insurance may not be issued for any premium or fee other

than the applicable prescribed premium as provided by Subchapters

D and E, Chapter 2703.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER B. ORGANIZATION OF ATTORNEY'S TITLE INSURANCE COMPANY

Sec. 2552.051. ORGANIZING MEMBERS. Fifteen or more members of

the State Bar of Texas who are residents of this state may

organize a private corporation to act as an attorney's title

insurance company.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.052. CAPITAL SHARE AND SURPLUS REQUIREMENTS GENERALLY.

(a) At the time of organization, an attorney's title insurance

company must have the capital and surplus required of a title

insurance company under Section 2551.053(a).

(b) The capital shares of an attorney's title insurance company

may be issued for a par value of $100 or more per share and in

one or more classes.

(c) The capital shares, regardless of class, must be subscribed

and paid for and owned by and issued to licensed members of the

State Bar of Texas, each of whom is a resident of this state and

is qualified to be appointed a title attorney under this chapter,

subject to the right of reacquisition under Section 2552.054.

(d) Each certificate evidencing any share must have endorsed on

the certificate provisions relating to limitation on the

alienation of the shares indicating that the shares may be owned

only by qualifying attorneys or the attorney's title insurance

company issuing the shares.

(e) The requirements prescribed by Subsections (a), (c), and (d)

do not apply to an attorney's title insurance company described

by Section 2552.053 or to capital shares of an attorney's title

insurance company owned under that section.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.053. CAPITAL SHARE AND SURPLUS REQUIREMENTS FOR STATE

BAR ENTITY. (a) An association of the organized State Bar of

Texas, the State Bar of Texas, or any foundation created by or

through the State Bar of Texas, the purposes of which include the

continuing legal education of the bench and bar of this state,

may own any class of capital shares of an attorney's title

insurance company if, at all times, at least 15 members of the

State Bar of Texas who are residents of this state own capital

shares, whether or not of the same class, in the attorney's title

insurance company.

(b) An attorney's title insurance company created as an

affiliate or subsidiary of the organized State Bar of Texas, the

State Bar of Texas, or any foundation created by or through the

State Bar of Texas must have a paid-up capital of at least

$250,000 and a surplus of at least $150,000.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.054. REACQUISITION OF SHARES. (a) The capital shares

of an attorney's title insurance company are subject to the right

of reacquisition of the shares by the attorney's title insurance

company in the event of:

(1) the death of the attorney shareholder;

(2) the failure of the attorney shareholder to remain a licensed

member of the State Bar of Texas; or

(3) the failure of the attorney shareholder to remain appointed

and qualified to be appointed a title attorney under this

chapter.

(b) An attorney's title insurance company must reacquire a

deceased attorney shareholder's shares within nine months of the

attorney shareholder's death.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.055. REACQUISITION PLAN REQUIRED. (a) As part of the

application for the approval of the charter of an attorney's

title insurance company, the applicants must file with the

department an acceptable plan providing for the reacquisition of

all shares of stock of the attorney's title insurance company

issued to a qualified attorney when the attorney is no longer

qualified to own the shares or on the death of the attorney.

(b) The plan must be approved by the department.

(c) In addition to other provisions, the plan must include an

express provision that the attorney's title insurance company may

not reacquire under any circumstance outstanding shares of its

stock as treasury stock if the reacquisition will result in

reducing its capital and surplus below the minimum capital and

surplus required for the initial organization of the attorney's

title insurance company.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.056. INAPPLICABILITY OF LAWS REGULATING SECURITIES.

(a) All state laws, other than this title, that provide for

supervision, registration, or regulation in connection with the

sale, issuance, or offering of securities do not apply to the

sale, issuance, or offering of any capital stock to a person

authorized under this chapter to own the capital stock.

(b) The sale, issuance, or offering of any stock described by

this section is legal without any action or approval by any

official or state regulatory agency authorized to license,

regulate, or supervise the sale, issuance, or offering of

securities.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER C. TITLE ATTORNEY'S LICENSE AND RENEWAL

Sec. 2552.101. LICENSE AND OTHER GENERAL REQUIREMENTS. To act

as a title attorney in this state for an attorney's title

insurance company, an attorney must:

(1) be a member in good standing of the State Bar of Texas;

(2) own one or more shares of stock in the attorney's title

insurance company by which the attorney is appointed;

(3) be actively engaged in the practice of law;

(4) meet the requirements prescribed by this chapter regarding

an abstract plant;

(5) be appointed by an attorney's title insurance company as its

title attorney authorized by the attorney's title insurance

company to solicit insurance, collect premiums, and issue or

countersign policies on behalf of the attorney's title insurance

company;

(6) be certified as a title attorney to the department;

(7) hold a license issued by the department under this

subchapter; and

(8) maintain a surety bond or deposit as required by Section

2552.154.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.102. LICENSE APPLICATION. (a) Before an initial

license is issued to an attorney to act as a title attorney in

this state for an attorney's title insurance company, the

attorney's title insurance company must file an application for a

title attorney's license with the department on forms provided by

the department.

(b) The application must be:

(1) accompanied by a nonrefundable fee in an amount not to

exceed $50 as prescribed by the department; and

(2) signed and sworn to by the attorney's title insurance

company and the proposed title attorney.

(c) The completed application must state that:

(1) the proposed title attorney:

(A) is a licensed attorney in this state and a resident of this

state;

(B) is actively engaged in the practice of law;

(C) is known to the attorney's title insurance company:

(i) to have a good business reputation;

(ii) to be a current member, in good standing, of the State Bar

of Texas; and

(iii) to be worthy of the public trust; and

(D) meets the qualifications for a title attorney as prescribed

by this chapter; and

(2) the attorney's title insurance company does not know of any

fact or condition that would disqualify the proposed title

attorney from receiving a license.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.103. LICENSE ISSUANCE AND DELIVERY. (a) The

department shall issue a title attorney's license if the

department determines, based on the application and the

department's investigation, that the requirements of Section

2552.102 are satisfied.

(b) The department shall deliver the license to the attorney's

title insurance company for transmittal to the title attorney.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.104. DUPLICATE LICENSE. (a) The department shall

collect in advance a fee from a license holder who requests a

duplicate title attorney's license.

(b) The department shall prescribe the fee in an amount not to

exceed $20.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.105. LICENSE TERM. Unless a system of staggered

renewal is adopted under Section 4003.002, a title attorney's

license expires on June 1 following the date of issuance.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.106. AUTOMATIC TERMINATION OF LICENSE. The license of

each title attorney appointed by an attorney's title insurance

company that surrenders its certificate of authority or has its

certificate revoked by the department is automatically terminated

without notice.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.107. LICENSE SURRENDER OR FORFEITURE. (a) A title

attorney may voluntarily surrender the title attorney's license

at any time by giving notice to the department and to the

attorney's title insurance company.

(b) A title attorney automatically forfeits the title attorney's

license under the attorney's title insurance company if the title

attorney terminates the title attorney's relationship with the

attorney's title insurance company.

(c) A surrender or forfeiture of a title attorney's license

under this section does not affect the culpability of the license

holder for conduct committed before the effective date of the

surrender or forfeiture. The department may institute a

disciplinary proceeding against the former license holder for

conduct committed before the effective date of the surrender or

forfeiture.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.108. CONTINUATION OF LICENSE. (a) Not later than the

30th day after the date an attorney's title insurance company

terminates its contract with a title attorney or gives notice of

termination to the title attorney, the title attorney may apply

to the department for continuation of the title attorney's

license.

(b) The application must include an amendment to the license

stating the name of another attorney's title insurance company

for which the title attorney is or will be authorized to act.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER D. TITLE ATTORNEY GENERAL REQUIREMENTS

Sec. 2552.151. CONTRACT REQUIRED FOR APPOINTMENT. (a) A title

attorney must be appointed by an attorney's title insurance

company by contract.

(b) The contract must make arrangements for division of premium

as may be approved by the department under this title.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.152. ABSTRACT PLANT REQUIREMENTS. (a) A title

attorney must:

(1) own or lease and control a licensed abstract plant;

(2) participate in a bona fide joint abstract plant operation;

(3) contract in accordance with this subchapter to obtain title

evidence from a licensed abstract plant; or

(4) use title evidence provided by an approved abstract plant

owned or leased and controlled by the attorney's title insurance

company.

(b) If at the time of applying for a license under Section

2552.102 an attorney does not own or lease and control a licensed

abstract plant, is not a participant in a bona fide joint

abstract plant operation, and is unable to contract to obtain

title evidence from a licensed abstract plant located in the

county in which the attorney resides, the attorney, as part of

the license application, may satisfy the requirements of this

section by filing with the department on a form prescribed by the

department a disclosure of the inability to obtain the contract.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.153. CONTRACT WITH LICENSED ABSTRACT PLANT. (a) A

title attorney may enter into a contract with a licensed abstract

plant under which the abstract plant provides title evidence to

the title attorney. The contract must:

(1) be on a form prescribed by the commissioner; and

(2) state the standards for the evidence to be provided.

(b) The commissioner may change the form of the contract.

(c) The parties to the contract shall determine the portion of

the premium to be paid by the title attorney to the licensed

abstract plant, subject to approval by the department.

(d) The department may disapprove any division of the premium

that the department determines to be excessive or inadequate. The

contract is considered to be approved as to the division of the

premium until the parties are notified of disapproval by the

department.

(e) The portion of the premium to be paid to the licensed

abstract plant is considered to be in compliance with Section

2502.053(1).

(f) The parties to the contract shall file with the department a

copy of the contract not later than the 10th day after the date

of execution of the contract.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.154. BOND OR DEPOSIT REQUIRED. (a) A title attorney

shall make, file, and pay for a surety bond payable to the

department in the amount of $7, 500 and issued by a corporate

surety company authorized to write surety bonds in this state.

The bond shall obligate the principal and surety to pay any

pecuniary loss that is incurred by:

(1) a participant in a real property settlement or closing in

which an attorney's title insurance policy is issued by the title

attorney and that is sustained through an act of fraud,

dishonesty, theft, embezzlement, or wilful misapplication by a

title attorney; and

(2) any party to an escrow agreement in which the title attorney

is escrowee and that is sustained through an act of fraud,

dishonesty, forgery, theft, embezzlement, or wilful

misapplication by the title attorney, either directly and alone

or in conspiracy with another person.

(b) Instead of a surety bond, a title attorney may deposit with

the department cash or securities approved by the department in

the amount of $7,500, subject to the same conditions required for

the bond.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.155. EXAMINATION OF LOSS COVERED BY BOND. (a) At any

time it appears that the terms of a title attorney's bond may

have been violated, the department may require the title attorney

to appear in Travis County, with records the department

determines to be proper, for an examination.

(b) The department shall specify a date for the examination that

is not earlier than the 10th day or later than the 15th day after

the date of service of notice of the requirement to appear.

(c) If after the examination the department determines that the

terms of the bond have been violated, the department shall

immediately notify the surety and prepare a written statement of

the facts of the loss and deliver the statement to the attorney

general.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.156. INVESTIGATION BY ATTORNEY GENERAL. (a) On

receipt of a written statement under Section 2552.155, the

attorney general shall investigate the charges and, on

determining that the terms of the bond have been violated, shall

enforce the liability against cash or securities or by filing

suit on the bond.

(b) A suit brought under this section shall be filed in the name

of the department in Travis County for the benefit of all parties

who have suffered any loss because of the violation.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.157. AUTHORITY TO ISSUE POLICY. A title attorney may

issue a title insurance policy for an attorney's title insurance

company only if the title attorney:

(1) is appointed by the attorney's title insurance company as

its title attorney;

(2) bases each title opinion on separate and current title

evidence, provided by a licensed abstract plant, of the records

of the county in which the real property, the title to which is

to be insured, is located; and

(3) pays to the licensed abstract plant the portion of the

premium agreed to by the title attorney and the abstract plant

and approved by the department, if the title attorney contracts

to obtain the title evidence from the abstract plant as provided

by Section 2552.153.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.158. AUTHORITY TO DELIVER BUT NOT ISSUE POLICY. A

title attorney may deliver, but not issue, a title insurance

policy in conformity with Subchapter A, Chapter 2704, if:

(1) the title attorney does not own or lease and control a

licensed abstract plant, is not a participant in a bona fide

joint abstract plant operation, and is unable to contract with a

licensed abstract plant to obtain the required title evidence in

the county in which the real property, the title to which is to

be insured, is located; or

(2) the title insurance policy is based on a certified abstract

of title prepared by a licensed abstract plant covering the

particular real property from the sovereignty of the soil to the

date of the transaction.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER E. POWERS AND DUTIES OF ATTORNEY'S TITLE INSURANCE

COMPANIES

Sec. 2552.201. ACTING AS TITLE ATTORNEY. An attorney's title

insurance company may not permit an attorney to act as its title

attorney in this state, including by writing, signing, or

delivering title insurance policies, unless the attorney holds a

license issued under Subchapter C and maintains a surety bond or

deposit as required by Section 2552.154.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.202. LIST OF TITLE ATTORNEYS. (a) An attorney's

title insurance company shall certify to the department the name

and address of each title attorney appointed by the attorney's

title insurance company.

(b) The certification required by this section must:

(1) be on a form provided by the department; and

(2) be made on or before June 1 of each year unless a system of

staggered renewal is adopted under Section 4003.002.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.203. RENEWAL. An attorney's title insurance company

shall apply for license renewal and pay a fee prescribed by the

department in an amount not to exceed $50 for each title attorney

listed under Section 2552.202.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.204. NOTICE OF TERMINATION. An attorney's title

insurance company that terminates the appointment of a title

attorney shall:

(1) immediately notify the department in writing of the

termination and request cancellation of the title attorney's

license; and

(2) notify the title attorney of the action by the attorney's

title insurance company.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER F. AUDIT AND EXAMINATION REQUIREMENTS RELATING TO

TRUST FUND ACCOUNTS

Sec. 2552.251. ANNUAL AUDIT. (a) A title attorney shall have

an annual audit made of trust fund accounts. The title attorney

shall pay for the audit.

(b) The audit must be performed by an independent certified

public accountant or licensed public accountant, or a firm

composed of either, recommended by the title attorney and

approved by the attorney's title insurance company represented by

the title attorney.

(c) The audit must include disclosure of payments made for title

evidence under a contract under Section 2552.153 and to whom the

payments were made.

(d) Not later than the 90th day after January 1 of each year,

the title attorney shall send by certified mail, postage prepaid,

to the department one copy of the audit report with a transmittal

letter. The title attorney shall also send a copy of the audit

report and transmittal letter to the attorney's title insurance

company represented by the title attorney.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.252. ANALYSIS OF ANNUAL AUDIT. (a) An attorney's

title insurance company shall examine and analyze the annual

audit report received from each of its title attorneys under

Section 2552.251.

(b) Not later than three months after the date the audit report

is received, the attorney's title insurance company shall file

with the department, on a form prescribed by the department, a

report of the findings and results of the examination and

analysis of the audit report.

(c) If an attorney's title insurance company fails to receive an

audit report from a title attorney within the time required by

Section 2552.251, the attorney's title insurance company shall

promptly report that fact to the department.

(d) After the report of the examination and analysis is filed

with the department by an attorney's title insurance company, the

department may classify the report as confidential and

privileged.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.253. EXAMINATION OF TRUST FUND ACCOUNTS; TRANSACTION

REPORTS. (a) An attorney's title insurance company, through its

examiners or auditors or through independent certified public

accountants commissioned by the attorney' s title insurance

company, may examine at any time the trust fund accounts and

records relating to the accounts of any of its title attorneys.

(b) The attorney's title insurance company shall pay for the

examination of the accounts and records.

(c) An attorney's title insurance company may require from any

of its title attorneys special reports regarding any of their

transactions.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.254. ENFORCEMENT; HEARING. (a) After notice and

hearing, the department may revoke the license of a title

attorney who:

(1) fails to furnish an annual audit report within the time

required by Section 2552.251; or

(2) furnishes an audit report that reveals any irregularity,

including a shortage, or any practice not in keeping with sound,

honest business practices.

(b) The notice must be provided to the title attorney and the

attorney's title insurance company represented by the title

attorney.

(c) At a hearing under this section, the title attorney and the

attorney's title insurance company may offer evidence explaining

or excusing a failure or irregularity.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER G. LICENSE DENIAL AND DISCIPLINARY ACTION

Sec. 2552.301. GROUNDS FOR LICENSE DENIAL OR DISCIPLINARY

ACTION. The department may deny an application for a title

attorney's license or discipline a title attorney under Sections

4005.102, 4005.103, and 4005.104 if the department determines

that the applicant or license holder:

(1) has wilfully violated this title;

(2) has intentionally made a material misstatement in the

license application;

(3) has obtained or attempted to obtain the license by fraud or

misrepresentation;

(4) has misappropriated or converted to the applicant's or

license holder's own use or illegally withheld money belonging to

an attorney's title insurance company, an insured, or another

person;

(5) has been guilty of fraudulent or dishonest practices;

(6) has materially misrepresented the terms and conditions of a

title insurance policy or contract;

(7) has failed to maintain:

(A) a separate and distinct accounting of escrow funds; and

(B) an escrow bank account or accounts separate and apart from

all other accounts;

(8) is no longer a member of the State Bar of Texas; or

(9) is no longer actively engaged in the practice of law.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2552.302. LICENSE APPLICATION AFTER DENIAL, REFUSAL, OR

REVOCATION. (a) An applicant whose license application has been

denied or refused or a license holder whose license has been

revoked under this subchapter may not file another application

for a title attorney's license before the first anniversary of:

(1) the effective date of the denial, refusal, or revocation; or

(2) the date of a final court order affirming the denial,

refusal, or revocation if judicial review is sought.

(b) A license application filed after the time required by this

section may be denied by the department unless the applicant

shows good cause why the denial, refusal, or revocation should

not be a bar to the issuance of a license.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.