| Indiana Rating Bureau? |
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Indiana State Senator Karen Tallian (D-Portage) sponsored SB 410 on January 9, 2012 which is a bill to create a filed rating system for title insurance in Indiana. The text of the bill is enclosed here for your review. If approved and signed by Governor Daniels, it would become effective on July 1, 2012 and establish a rating bureau similar to Ohio and Pennsylvania. That bureau would then be responsible for setting title insurance rates and form usage in Indiana. Title insurers would not be able to charge rates that are excessive, inadequate or unfairly discriminatory. When making rate filings, past and prospective loss experience in Indiana would have to be considered, as well as, a reasonable margin for underwriting profit and contingencies.
While on the surface these changes seem to suggest a fair playing field for all market participants, there will be concerns with the construction of the bureau, if approved, and the rates that each agree upon. In most states, the bureaus are dominated by the four largest title insurance companies that operate in those states. What is sometimes good for the biggest market participants is not always the same for the smaller participants. This will need to be watched carefully. IAILTA is also aware of present market participants, in Indiana and Ohio, who have approved the use of bank flat rates that undercut independent competition. We do not want a future bureau to approve these types of rates unless they are based upon sound statistical and actuarial science (i.e. not unfairly discriminatory to independent agents). We will monitor this situation closely and would like your input in that process. Since this bill is in the design stages, I encourage each of you (especially those in Indiana) to contact Senator Tallian's office and voice your opinions on the matter. Senator Tallian can be contacted as follows: State Senator Karen Tallian
Indiana State Senate
200 W. Washington Street
Indianapolis, IN 46204-2785
(800) 382-9467
Senator Tallian's Legislative Aide is Adam Jones. Mr. Jones can be reached by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or via telephone at (317) 232-9847. Usually, contacting the legislative aide is the best way to have a window to the legislator. We would encourage you to put your thoughts in writing and send them to both Senator Tallian and her LA. Also, for those interested in helping to follow this legislation and to stay involved as part of the independent title agent movement in Indiana, we encourage each of you to consider joining the Indiana Association of Independent Land Title Agents (IAILTA - www.iailta.org). The IAILTA Board members are gearing up to address this important issue by getting in contact with Senator Tallian and expressing the organization's viewpoint for Indiana's independent title community. Your support in that effort is greatly appreciated! To find out about becoming a member of this organization, please visit the IAILTA website and sign up online today! |
