November 30, 2023

In This Issue:

  • Texas Legislature: 4th Special Session Update
  • Underwriters: TDI Proposes Rule to Adopt Liquidity Stress Test Framework for Certain Insurers
  • ICYMI: TDI Considered Proposals to Update Basic Manual During Rulemaking Hearing Nov. 15
  • ALTA: How the Title Industry Is Addressing the Negative Effects of Heirs’ Property

Texas Legislature: 4th Special Session Update

TLTA | Nov. 30, 2023
Special sessions are limited to 30 days each, and today is the 24th day of the 4th Called Session of the 88th Texas Legislature. Bills related to border security and school safety appear on track for enactment. The other items on the special session call, public school funding and vouchers, appear stalled, which is generating a politically volatile environment. 
 
Your TLTA advocacy team continues to monitor all developments at the Capitol in Austin, and we'll keep you apprised as the special session progresses. 

Underwriters: TDI Proposes Rule to Adopt Liquidity Stress Test Framework for Certain Insurers

Texas Land Title Association | Nov. 30 2023
The Texas Department of Insurance (TDI) proposes a new rule to implement House Bill 2839 (88R, 2023). HB 2839 requires the commissioner of insurance to adopt a liquidity stress test framework—including scope criteria and reporting templates—consistent with the framework published by the NAIC to facilitate the aggregation of results from the liquidity stress test filed with this and other states.
 
TLTA underwriter members should evaluate the rule to see if it impacts their business, especially if your company is a “holding company.”
 
View TDI's proposal for the full text and how to submit comments.

For other dates and documents related to this action, visit TDI’s 2023 rules webpage. 
 

ICYMI: TDI Considered Proposals to Update Basic Manual During Rulemaking Hearing Nov. 15

TLTA | Nov. 30, 2023
The Texas Department of Insurance held a hearing Wednesday, Nov. 15, to consider proposals to update, correct and clarify rules and forms in the Basic Manual. A petition from TLTA, as well as additional proposals from TDI and comments from TLTA regarding TLTA’s original petition seeking to amend some items and withdraw others in that petition, were discussed at the hearing. 
 
The rules and endorsement rate adjustments proposed by TLTA were generated by TLTA's Regulatory Committee and approved by TLTA's Board of Directors following many years of work. TLTA's rule package contains several improvements to current procedural rules, a modernization of certain fees, new endorsements, and plain language rewrites.  
 
The rulemaking hearing Nov. 15 followed months of work with TDI that began last December with a public meeting and continued with an additional public meeting this summer wherein issues were discussed among TLTA members, stakeholders, and TDI staff, resulting in an improved package.
 
TLTA Regulatory Committee Chair, Roland Love, testified at the hearing, explaining each agenda item and answering questions from TDI Commissioner Cassie Brown. We are grateful for his leadership throughout this process and his outstanding job laying out these proposals for the Commissioner. 

TDI attorney David Muckerheide, Assistant Director of the Property and Casualty Lines Office, then testified, laying out each of the TDI proposals that are part of the rule package. Aaron Day also testified as to the collaborative process and public meetings leading up to the hearing.  

Thereafter, Rick Altizer, CEO of Earnnest testified requesting that the Commissioner publish a bulletin to change P-27 (f) to increase the amount of  “uncertified funds” allowed from the current $1,500 to $9,300 with a 5% percentage increase each year for the next 3 years to get to $10,000. Additionally, he requested that “ACH” be included in the list of payment methods identified in subsection (f). Note there is no agenda item in the rule package addressing P-27, just the testimony presented yesterday.
 
We will continue to keep you updated throughout TDI's process. If you have questions or comments, please submit them to Aaron Day at [email protected] or call at 512.810.8800.
 
New TLTA Comments on TLTA's Original Petition »
TLTA's Original Petition »
TDI Proposal »
TDI Exhibits »
 

ALTA: How the Title Industry Is Addressing the Negative Effects of Heirs’ Property

ALTA's Diane Tomb via HousingWire | Nov. 29, 2023
Homeownership is the single greatest contributor to household wealth for American families. From 2010 to 2020, the value of owner-occupied housing in 917 metropolitan or micropolitan metro areas increased by $8.2 trillion.

We know homeownership is a significant contributor to generational wealth. A home that is inherited from a family member without a will, also known as heirs’ property, can present serious challenges to families if new ownership has not been updated in land records.

Given the numerous risks and challenges associated with heirs’ property and the higher incidence in low- to moderate-income communities, the American Land Title Association (ALTA) is committed to expanding awareness of heirs’ property and collaborating with industry and government partners to address this often-overlooked hurdle to wealth building.
 
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