Bill Text: CA AB2196 | 2013-2014 | Regular Session | Introduced

California Assembly Bill 2196 (Prior Session Legislation)

Introduced

Bill Title: Title insurance: termination: exemption.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-04-23 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2196 Detail]

Download: California-2013-AB2196-Introduced.html

BILL NUMBER: AB 2196	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Fox

                        FEBRUARY 20, 2014

   An act to add Article 9 (commencing with Section 12419) to Chapter
1 of Part 6 of Division 2 of the Insurance Code, relating to title
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2196, as introduced, Fox. Title insurance: termination:
exemption.
   Under existing law, a policy of title insurance insures,
guarantees, or indemnifies owners of real or personal property, or
the holders of liens or encumbrances on that property, or others
interested in the property against loss or damage suffered by reason
of liens or encumbrances on, or defects in the title to the property,
invalidity or unenforceability of any liens or encumbrances on the
property, or incorrectness of searches relating to the title to real
or personal property.
   This bill would require that coverage under a policy of title
insurance continue to the transferee when title is transferred to a
trustee of the insured's revocable living trust of which the insured
is a beneficiary with the power to revoke, or, if the trustee of a
trust is the insured under the policy, when title is transferred by
the trustee to the trust's settlor in his or her individual capacity.
The provisions would only apply to policies of title insurance
issued on or after January 1, 2015.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 9 (commencing with Section 12419) is added to
Chapter 1 of Part 6 of Division 2 of the Insurance Code, to read:

      Article 9.  Exemption to Termination of Title Insurance on
Transfers to Revocable Trusts


   12419.  (a) Coverage under a policy of title insurance shall
continue to the transferee when title is transferred to a trustee of
the insured's revocable living trust of which the insured is a
beneficiary with the power to revoke, or, if the trustee of a trust
is the insured under the policy, when title is transferred by the
trustee to the trust's settlor in his or her individual capacity.
   (b) This section applies only to a policy of title insurance
issued on or after January 1, 2015.