House tightens experience rules for title agencies in insurance licensing bill

The Utah House on Jan. 25 amended House Bill 233 to tighten experience requirements for individuals who open or manage title insurance agencies. The bill, which the sponsor described as clarifying reporting requirements, adding experience prerequisites for title agency ownership or management, and adjusting viatical settlement provider oversight, received floor amendments reinstating longer experience windows after committee changes.

Representative Paul Dunnegan, sponsor, told the chamber the bill addresses three areas: clearer reporting of administrative and criminal actions, experience thresholds for title agency owners/managers, and new financial due‑diligence for out‑of‑state viatical settlement sellers. He said the changes respond to a rash of enforcement actions against new agencies: "During the last 3 years, there have been 34 title agencies, new agencies that have been opened. And there have already been 29 actions taken against those new agencies."

Representative Gordon Snow moved to restore a three‑ and five‑year experience standard after committee language had shortened the requirement. Snow and the sponsor argued the restored standard was not intended to create gatekeeping but to ensure that agencies handling escrow funds have sufficient experience.

“Title agencies collectively through Utah handle millions of dollars of the public money through their escrow trust accounts,” Representative Dunnegan said, arguing that experience requirements protect consumers and reduce enforcement incidents.

The House approved the sponsor’s amendment and later passed House Bill 233 as amended by voice and recorded vote; the bill will be transmitted to the Senate for consideration.

What happens next: HB 233, as amended to restore the longer experience windows, goes to the Senate for its consideration and any further amendment or concurrence.