NOTICE OF SUBSTANTIVE CHANGE
1. Agency Information
Insurance, Title and Escrow Commission
Taylorsville State Office Building
Salt Lake City, UT 84114-6901
2. Contact Persons
Please address questions regarding information on this notice to the persons listed above.
3. General Information
A. Rule or section catchline:
R592-19. Winding Down the Business of a Resident Agency Title Insurance Producer
B. Purpose of the new rule or reason for the change:
The purpose of this rule is to provide a process for winding down the business of a resident agency title insurance producer.
C. Summary of the new rule or change:
This proposed new rule sets the required actions an agency title insurance producer (agency) must take in preparation for winding down its business.
Some of these steps are required of currently active agencies to ensure they are prepared for the future. This rule requires that agencies create a wind down plan for their title and escrow files in the event of a wind down.
As part of the annual report required by Section 31A-23a-413, they must review these plans annually and either provide an updated plan or certify that their existing plan is sufficient and needs no update.
This rule also sets timelines for an agency to notify the Department of Insurance (Department) and its underwriters in the event of a wind down; sets requirements for wind-down-related business reporting; describes an underwriter review process; and sets requirements for record storage, access, and accountability.
4. Legislative Action Information
A. Are any changes in this filing because of state legislative action?
Changes are because of legislative action.
B. If yes, any bill number and session:
HB 58 (2026 General Session)
5. Fiscal Information
Provide an estimate and written explanation of the aggregate anticipated cost or savings to:
There is no anticipated cost or savings to the state budget.
Few agencies wind down each year, and any work added due to the requirements of this rule is expected to be incorporated into employees' existing workloads.
If a title insurer is required to create an audit report of an agency, the insurer may be reimbursed by the state under Section 31A-41-203.
The Department cannot estimate these costs because they will depend on several business-related factors the Department is not privy to.
There is no anticipated cost or savings to local governments.
This rule governs the relationship between the Department and its licensees, and does not affect local governments in any way.
C. Small businesses ("small business" means a business employing 1-49 persons):
A small businesses that is an agency making the decision to wind down will incur additional costs as a result of this rule.
This rule requires certain reports be produced and provided to the Department and an agency's underwriters.
Creation of the report itself will require work, and delivery of the report may incur delivery fees if not sent electronically. The Department cannot estimate these fees because they depend on the amount of time and pay rate of any employee of a licensee doing the work. These are business costs the Department is not privy to.
After the wind down, a former agency is required to securely store records and provide access to an underwriter who needs them. This may also result in a cost, but it is also inestimable because it will depend on the storage method chosen and the time taken to provide access.
D. Non-small businesses ("non-small business" means a business employing 50 or more persons):
A non-small business that is a title insurer may incur some costs as a result of this rule, although these costs may be reimbursed by the state under Section 31A-41-203.
The Department cannot estimate these costs because they will depend on several business-related factors the Department is not privy to.
E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency):
A person who is a former agency may incur some costs as a result of this rule.
After a wind down, a former agency is required to securely store records and provide access to an underwriter who needs them.
This may also result in a cost, but it is also inestimable because it will depend on the storage method chosen and the time taken to provide access.
F. Compliance costs for affected persons:
There are no compliance costs for any affected persons
6. Regulatory Impact Summary Table
Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable."
7. Regulatory Impact Analysis Approval
The Commissioner of the Insurance Department, Jonathan T. Pike, has reviewed and approved this regulatory impact analysis.
8. Family Impact Information
A. The agency has considered this rule's impact on family health, stability, and formation:
9. Citation Information
Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement:
11. Public Notice Information
The public may submit written or oral comments to the agency identified in box 1.
A. Comments will be accepted until:
12. Effective Date Information
This rule change MAY become effective on:
(NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date)
13. Agency Authorization Information
Agency head or
designee and title:
Steve Gooch, Public Information Officer
R592. Insurance, Title and Escrow Commission.
R592-19. Winding Down the Business of a Resident Agency Title Insurance Producer. This rule is promulgated by the commissioner pursuant to Subsection 31A-2-404(6). R592-2. Purpose and Scope. (1) The purpose of this rule is to provide a process for winding down the business of a resident agency title insurance producer. (2) This rule applies to a resident agency title insurance producer. Terms used in this rule are defined in Sections 31A-1-301 and 31A-2-402. Additional terms are defined as follows: (1) "Active underwriter" means an underwriter from which an agency has an appointment within six months before the date on which the agency provides written notice of intent to wind down to the Department. (2) "Agency" means a licensed resident agency title insurance producer. (3) "Escrow file" means a physical or electronic document relied on or generated in conducting escrow under Title 31A. (4) "Final audit" means the audit of an agency's trust accounts, operating accounts, escrow files, accounting records, and related title insurance records required under Subsection R592-19-7(1). (5) "Title file" means a physical or electronic document relied on or generated during the process of placing title insurance. (6) "Underwriter" means an insurance company that underwrites title insurance risks. (7) "Wind down process" and "winding down process" mean the process of closing an agency's business. R592-19-4. Agency's Annual Wind Down Plan and Certification. (1) An agency shall annually prepare a written plan for winding down its business. (2) The plan shall state: (a) the physical or electronic location at which the agency's escrow and title files will be securely stored for access: (i) during the wind down process; and (ii) for a period of four years after the wind down process ends; (b) the name and contact information for the person: (i) with access to the escrow and title files; and (ii) who is responsible to respond to questions about information in the files; (c) the physical or electronic location of the escrow accounting records; (d) the process that the Department or an active underwriter must follow to obtain access to those records; (e) the agency's procedures for: (i) reconciling each trust account; (ii) completing pending escrow transactions; (iii) disbursing or transferring escrow funds; and (iv) resolving outstanding escrow obligations; (f) the name and contact information for the title insurance licensed person responsible for the completion of the wind down process; and (g) each past and current underwriter from which the agency had or has an appointment. (a) provide a plan with the report required by Section 31A-23a-413; (b) review and update the plan as necessary; and (c) provide an updated plan with the report as required by Section 31A-23a-413. (4)(a) After providing a plan with a report required by Section 31A-23a-413, the agency is only required to provide a plan after it is updated. (b) If not required to provide a plan or an updated plan, the agency shall certify in the report that the agency's current plan has been reviewed and needs no updating. (5) This section does not require an agency to provide a plan or an updated plan to an underwriter. 
