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Witness urges clarification of title insurance joint-venture law in HB 230
Summary
A title insurance industry witness told the House Insurance Committee HB 230 would close loopholes and replace vague language in ORC 3953.36 to clarify formation, operation and dissolution of title insurance joint ventures and direct the superintendent of insurance to issue review standards.
Jim Jansen, a licensed title insurance agent and long-time joint-venture operator, testified in favor of House Bill 230 in its second hearing. He told the committee the bill is intended to close loopholes enabling improper payments to referrers, to clarify the legal definition of a title insurance joint venture and beneficial owner, and to replace a vague existing statute (ORC 3953.36) governing dissolution of joint ventures.
Jansen said joint ventures are highly regulated and must comply with federal Real Estate Settlement Procedures Act (RESPA) requirements. He said the current Ohio statute is short and vague, making compliance and enforcement difficult, and that HB 230 would provide specific permitted and prohibited actions, clarify annual review requirements and direct the superintendent of insurance to promulgate standards and forms for reviews.
He said technical edits from interested parties are expected, but they do not change the bill's core premise: to provide clearer rules so title agents can lawfully form, operate and dissolve joint ventures without ambiguity.
No committee questions were recorded during the allotted time and the hearing concluded.
