RSA 416-A:1 Short Title.
416-A:1. Short Title.
This chapter shall be known and may be cited as "The Title Insurance Code".
Source. 1971, 561:1, eff. Sept. 10, 1971.
TITLE INSURANCE CODE
RSA tit. XXXVII, ch. 416-A
in effectRSA 416-A:2 Definitions.
416-A:2. Definitions.
As used in this chapter, unless the context otherwise requires:
I. "Title insurance" means insuring, guaranteeing, or indemnifying owners of real property or others interested therein against loss or damage suffered by reason of liens, encumbrances upon, defects in, or the unmarketability of the title to said property.
II. The "business of title insurance" means the making or proposing to make, as insurer, guarantor, or surety, or any contract or policy of title insurance; or the transacting or proposing to transact, as insurer, guarantor, or surety, any phase of title insurance, including solicitation, negotiation preliminary to execution, execution of a contract of title insurance, and transacting matters subsequent to the execution of the contract and arising out of it, including reinsurance.
III. "Title insurance company" means any domestic company organized under the provisions of this chapter for the purpose of insuring titles to real property; any title insurance company organized under the laws of another state or foreign nation and licensed to insure titles to real estate within this state; and any domestic, foreign, or alien company having the power and authorized to insure titles to real estate within this state and which meets the requirements of this chapter.
IV. "Applicants for insurance" shall be deemed to include all those whether or not a prospective insured, who from time to time apply to a title insurance company, or to its agent, for title insurance, and who at the time of such application are not agents for a title insurance company.
V. "Premium" for title insurance is the amount charged by a title insurance company, agent for a title insurance company, or either of them, to an insured or an applicant for insurance for the assumption by the title insurance company of the risk created by the issuance of the title insurance policy.
VI. "Fee" for title insurance means and includes the premium, abstracting, and/or searching charge, examination charge, and every other charge, exclusive of settlement, closing or escrow charges, whether denominated premium or otherwise, made by a title insurance company, agent of a title insurance company, to an insured or to an applicant for insurance, for any policy or contract for the issuance of title insurance, but the term "fee" shall not include any charges paid to and retained by an attorney at law or abstracter acting as an independent contractor whether or not he is acting as an agent of a title insurance company or an approved attorney, or any charges made for special services not constituting title insurance, even though performed in connection with a title insurance policy or contract.
VII. "Title insurance agent" means a person authorized by a title insurance company to solicit insurance or to collect premiums, or to issue or countersign policies in its behalf.
VIII. "Approved attorney" means an attorney at law, who is not an employee of a title insurance company or of a title insurance agent, upon whose examination of title and report thereon a title insurance company may issue a policy of title insurance.
IX. "Single insurance risk" means the insured amount of any policy or contract of title insurance issued by a title insurance company unless 2 or more policies or contracts are simultaneously issued on different estates in identical real property, in which event, it means the sum of the insured amounts of all such policies or contracts. Any such policy or contract that insures a mortgage interest that is excepted in a fee or leasehold policy or contract, and which does not exceed the insured amount of such fee or leasehold policy or contract, shall be excluded in computing the amount of a single insurance risk.
X. "Net retained liability" means the total liability retained by a title insurance company under any policy or contract for insurance, or under a single insurance risk as defined in or computed in accordance with paragraph IX of this section, after the purchase of reinsurance.
XI. "Foreign title insurance company" means a title insurance company organized under the laws of any other state of the United States.
XII. "Alien title insurance company" means any title insurance company incorporated or organized under the laws of any foreign nation, or of any province or territory thereof, not included under the definition of foreign title insurance company.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:3 Compliance Required.
416-A:3. Compliance Required.
No company shall underwrite or issue a policy of title insurance or otherwise engage in the business of title insurance in this state unless authorized by the provisions of RSA 416-A to transact such a business.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:4 Corporate Form Required.
416-A:4. Corporate Form Required.
Any domestic title insurance company hereafter formed shall be organized as a stock corporation.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:5 Financial Requirements.
416-A:5. Financial Requirements.
Every title insurance company shall have a minimum capital, which shall be paid in and maintained, of not less than $200,000 and, in addition, paid-in surplus of at least $100,000.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:6 Determination of Insurability Required.
416-A:6. Determination of Insurability Required.
No policy or contract of title insurance shall be written unless and until the title insurance company has caused to be conducted a reasonable examination of the title and has caused to be made a determination of insurability of title in accordance with sound underwriting practices for title insurance companies. Evidence thereof shall be preserved and retained in the files of the title insurance company or its agent or its approved attorney for a period of not less than 20 years after the policy or contract of title insurance has been issued. In lieu of retaining the original copy, the title insurance company or the agent of the title insurance company, may in the regular course of business, establish a system whereby all or part of these writings are recorded, copied, or reproduced by any photographic, photostatic, microfilm, microcard, miniature photographic, or other process which accurately reproduces or forms a durable medium for reproducing the original. This section shall not apply to either a company assuming no primary liability in a contract of reinsurance, or a company acting as a coinsurer if one of the other coinsuring companies has complied with this section.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:7 Powers.
416-A:7. Powers.
Every title insurance company shall have the following powers:
I. To do the business defined in RSA 416-A:2, II of this chapter.
II. To own, manage, and maintain sets of abstract books and, subject to the provisions of this chapter, make, compile, and sell abstracts of title to real estate.
III. To acquire by purchase or otherwise, and to hold, sell, mortgage, or otherwise dispose of real estate and personal property, or any interest therein, either within or without the state and to loan or borrow money upon such real estate or personal property.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:8 Prohibitions.
416-A:8. Prohibitions.
I. A title insurance company shall not:
(a) Engage in the business of guaranteeing the payment of the principal or the interest of bonds, notes, or other obligations.
(b) Transact, underwrite, or issue any kind of insurance other than title insurance.
II. A title insurance company or a title insurance agent shall not:
(a) Give or receive or attempt to give or receive remuneration in any form pursuant to any agreement or understanding, oral or otherwise, for the referral of title insurance business.
(b) Give or receive or attempt to give or receive any portion or percentage of any charge made or received in connection with the business of title insurance if such portion or percentage of the charge given or received is not for services actually rendered. For purposes of this chapter, "services actually rendered" shall include, but not be limited to, a reasonable examination of a title, including instruments of record, and a determination of insurability of such title in accordance with sound underwriting practices. "Services actually rendered" shall not include the mere referral of title insurance business.
Source. 1971, 561:1. 2006, 196:9. 2009, 38:1, eff. July 14, 2009.
RSA 416-A:8-a Compensation by Title Insurance Company.
416-A:8-a. Compensation by Title Insurance Company.
Nothing in this chapter, or in any other provision of law governing the insurance industry, shall be construed to prohibit:
I. Compensation by a title insurance company of an attorney who is licensed to practice for services actually rendered in connection with a real estate transaction, regardless of whether such attorney represents a client in such real estate transaction.
II. Payment to any person of a bona fide salary or compensation for payment of goods and facilities actually furnished or for services actually rendered.
Source. 2006, 196:10, eff. July 30, 2006.
RSA 416-A:9 Unearned Premium Reserve.
416-A:9. Unearned Premium Reserve.
In lieu of those reserves required for other insurance companies, every domestic title insurance company, and every foreign or alien title insurance company which under the state of domicile is not required to maintain a substantially equivalent unearned premium reserve shall, in addition to other reserves, establish and maintain a reserve to be known as the "unearned premium reserve" for title insurance, which shall, at all times and for all purposes, constitute the unearned portions of premiums due or received and shall be charged as a reserve liability of such title insurance company in determining its financial condition. The unearned premium reserve shall be retained and held by such title insurance company for the protection of the policyholders' interest in policies which have not expired. Except upon liquidation, dissolution, or insolvency, assets equal to the amount of such reserve shall not be subject to distribution among depositors or other creditors or stockholders of such title insurance company until all claims of policyholders or holders of other title insurance contracts or agreements of such title insurance company have been paid in full and all liability on the policies or other title insurance contracts or agreements, whether contingent or actual, has been discharged or lawfully reinsured. Income from the investment of the amount of such reserve shall be the unrestricted property of the title insurance company.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:10 Amount of Unearned Premium Reserve, Release.
416-A:10. Amount of Unearned Premium Reserve, Release.
I. The unearned premium reserve of every title insurance company required to maintain such reserves in this state shall consist of:
(a) The amount of the unearned premium reserve held as of September 10, 1971, pursuant to law; and
(b) The amount of all additions required to be made to such reserve by this section, less the withdrawals therefrom as permitted by this section.
II. Every title insurance company shall add to its unearned premium reserve in respect to each title insurance policy, leasehold policy, contract, or reinsurance agreement issued by it, a sum equal to $1 for each such policy, contract, or agreement, plus $.15 for each $1,000 face amount of net retained liability on each such policy, contract, or reinsurance agreement, as defined in RSA 416-A:2, X, or the amount reinsured by it, and shall separately record the aggregate amounts so set aside and reserved in respect to such policies, contracts, or agreements written in each calendar year.
III. The amounts set aside as additions to the unearned premium reserve shall be deducted from income in determining net profits of any title insurance company.
IV. For the purposes of determining the amounts of the unearned premium reserve that may be withdrawn pursuant to paragraph V of this section, all policies, contracts of title insurance, or reinsurance agreements of title insurance shall be considered as dated July 1 in the year of issue.
V. The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to paragraph II of this section shall be released from said reserve and restored to income pursuant to the following formula: 1/10 of said aggregate sum on July 1 of each of the 5 years next succeeding the year of addition to the reserve and 1/30 of said aggregate sum on July 1 of each succeeding year thereafter until the entire sum shall have been so released and restored to income.
VI. The entire amount of the unearned premium reserve held as of September 10, 1971 pursuant to law shall be presumed to have been added to the reserve in the calendar year next preceding September 10, 1971 and shall be released from said reserve and restored to income under the formula set forth in paragraph V of this section.
VII. If substantially the entire outstanding liability under all policies, contracts of title insurance, and reinsurance agreements of any such title insurance company shall be reinsured, the value of the consideration received by a reinsuring title insurance company authorized to transact the business of title insurance in this state, shall constitute in its entirety, unearned portions of original premiums and shall be added to its unearned premium reserve, and shall be deemed, for recovery purposes, to have been provided for liabilities assumed during the year of such reinsurance. The amount of such addition to the unearned premium reserve of such assuming title insurance company shall be not less than 2/3 of the amount of the unearned premium reserve required to be maintained by the ceding title insurance company at the time of such reinsurance.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:11 Reserve for Unpaid Losses and Loss Expense.
416-A:11. Reserve for Unpaid Losses and Loss Expense.
I. Each title insurance company, in addition to other reserves, shall at all times establish and maintain reserves against unpaid losses, and against loss expense, and shall calculate such reserves by making a careful estimate in each case of the loss and loss expense likely to be incurred, by reason of every claim presented, pursuant to notice from or on behalf of the policyholder, of a title defect in or lien or adverse claim against the title insured, that may result in a loss or cause expense to be incurred for the proper disposition of the claim. The sums of the items so estimated shall be the total amounts of the reserves against unpaid losses and loss expenses of such title insurance company.
II. The amounts so estimated may be revised from time to time as circumstances warrant, but shall be redetermined at least once each year.
III. The amounts set aside in such reserves in any year shall be deducted in determining the net profits for such year of any title insurance company.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:12 Net Retained Liability.
416-A:12. Net Retained Liability.
The net retained liability of any title insurance company under any single insurance risk as defined in RSA 416-A:2, IX and X, shall not exceed 50 percent of the net amount remaining after deducting from the sum of its capital, surplus, unearned premium reserve, and voluntary reserves, the value, if any, assigned in such summation to its title plant, all as shown in its most recent report on file with the commissioner. The same limitation shall apply to any secondary risk assumed by means of reinsurance or to any policy of excess coinsurance except, whenever the primary retained liability of a ceding company shall equal or exceed 10 percent of the single insurance risk liability, the net retained or assumed liability limit of this section may be increased by an additional $250,000, but in no event above 100 percent of the net amount remaining after deducting from the sum of its capital and surplus, the value, if any, assigned in such summation to its title plant, all as shown by its most recent report on file with the commissioner. Nothing in this section is intended to limit the amount of a single insurance risk, as defined in RSA 416-A:2, IX that may be written by a title insurance company; but it shall cede to one or more other title reinsurers on or before the effective date of such writing, such portion or portions of the said risk as shall be sufficient to bring its net retained liability thereunder within the limits prescribed in this section; and each such cession of risk shall be within the limits of this section as applied to the sum of the capital, surplus, unearned premium reserve, and voluntary reserves, less the value, if any, assigned in such summation to the title plants of the reinsuring company, as shown by its most recent report on file with the supervisory agency in the state of its domicile.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:13 Power to Reinsure.
416-A:13. Power to Reinsure.
Any title insurance company may cede reinsurance of all or any part of its liability under one or more of its policies, contracts, or reinsurance agreements of title insurance to any reinsurer which meets or exceeds the financial requirements of a title insurance company to do business in this state and is authorized to engage in the business of reinsurance of title insurance in this or any other state; but, no larger amount of reinsurance shall be ceded to any reinsurer on a single policy or contract of title insurance, or on any single insurance risk as defined in RSA 416-A:2, IX, than such reinsurer would be permitted to retain if authorized to engage in the business of title insurance in this state. Any title insurance company may also reinsure policies of title insurance issued by other insurance companies on risks located in this state or elsewhere. Any domestic title insurance company or any foreign or alien title insurance company authorized to do business in this state shall pay to this state taxes required on all business taxable within this state and reinsured, as provided in this section, with any foreign or alien company not authorized to do business within this state. Issuance of contracts of reinsurance by a reinsurer not authorized to engage in the business of title insurance in this state, but authorized to engage in the business of title insurance or in the business of reinsurance of title insurance in any of the United States, which contracts reinsure policies of title insurance issued by a title insurance company authorized to engage in the business of title insurance in this state on real property located in this state, shall not of itself constitute the doing of business in this state by such reinsurer.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:14 Legal Investments.
416-A:14. Legal Investments.
Title insurance companies shall comply with the investment requirements for other insurance companies, under the laws of this state, but, in addition, may invest in a title plant. Such title plant shall be considered an asset at the fair value thereof. In determining the fair value of a title plant, no value shall be attributed to furniture and fixtures. The real estate in which the title plant is housed shall be considered an investment. The value of title abstracts, title briefs, copies of conveyances or other documents, indices, and other records comprising the title plant shall be determined by considering the expenses incurred in obtaining them, the age thereof, the cost of replacements less depreciation, and all other relevant factors. Once the value of a title plant shall have been so determined, such value may be increased only by the acquisition of another title plant by purchase, consolidation, or merger. In no event shall the value of the title plant be increased by additions made thereto as part of the normal course of abstracting and insuring titles to real estate. Subject to the limitations of this section and with the approval of the commissioner, a title insurance company may enter into agreements with one or more other title insurance companies authorized to do business in this state whereby such companies shall participate in the ownership, management, and control of a title plant to serve the needs of all such companies, or such companies may hold stock of a corporation owning and operating a title plant for such purposes.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:15 Title Insurance Agent's License.
416-A:15. Title Insurance Agent's License.
I. Title insurance agents shall be licensed in the manner provided for agents of insurance companies by RSA 402-J, except as provided in subparagraphs (a) and (b).
(a) Nothing in this chapter shall be construed to require the licensing of an attorney at law in good standing and admitted to practice before the supreme court of New Hampshire for the purpose of an examination of title and report of title thereon to a title insurance company upon which such title insurance company may issue a policy of title insurance.
(b) Nothing in this chapter shall be construed to require the licensing of a law firm acting as agent of a title insurance company; provided that any sale, solicitation, or negotiation of a contract of title insurance is conducted by a duly licensed title insurance agent.
II. Employees of a corporate contractual agent of a title insurance company, authorized by such company, or such contractual agent, to issue or countersign binders or policies in behalf of such title insurance company shall be licensed.
III. The commissioner of insurance may require such examination of applicants for producer licenses as title insurance agents as he or she shall consider necessary to carry out the purposes of this chapter.
Source. 1971, 561:1. 2000, 315:19, 20. 2001, 95:13. 2009, 38:2, eff. July 14, 2009.
RSA 416-A:16 Title Insurance Agents; Certain Names Prohibited.
416-A:16. Title Insurance Agents; Certain Names Prohibited.
No agent for a title insurance company shall adopt a firm name containing the words "title insurance", "title guaranty", or "title guarantee", unless such words are followed by the words "agent" or "agency". The words "agent" or "agency" must be in the same size and type as the words preceding them. This section shall not apply to any title insurance company acting as agent for another title insurance company.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:17 Rates and Rating Organizations.
416-A:17. Rates and Rating Organizations.
I. Title insurance rates and rating organizations should be regulated in the manner provided by RSA 412:13 through RSA 412:16, and RSA 412:20 through RSA 412:25, except as otherwise provided in this section.
II. Every title insurance company shall file with the commissioner its schedule of fees or premium rates, every manual of classifications, rules and plans pertaining thereto, and every modification of any of the foregoing which it proposes to use in this state. In every such filing, the company shall set forth that portion of the fee which is designated as premium as herein defined.
Source. 1971, 561:1. 2003, 150:13. 2004, 156:5, eff. July 23, 2004.
RSA 416-A:17-a Filing of Forms.
416-A:17-a. Filing of Forms.
Every insurer and advisory organization shall file policy forms, endorsements, and other contract language covered by this chapter within 30 days of the effective date.
Source. 2004, 156:7. 2005, 248:8, eff. Sept. 12, 2005.
RSA 416-A:18 Laws Applicable.
416-A:18. Laws Applicable.
I. In addition to the provisions of RSA 416-A, the laws governing insurance companies, except as they are inconsistent with the provisions of RSA 416-A shall apply to the business of title insurance and to title insurance companies.
II. The provisions of RSA 400-A:32 shall be applicable to title insurers.
Source. 1971, 561:1. 2010, 13:5, eff. July 1, 2010.
RSA 416-A:19 Fees.
416-A:19. Fees.
The commissioner of insurance shall collect whatever fees he may establish by rule or regulation, provided however, said fees bear a reasonable relationship to the cost of administering the provisions of this chapter.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:20 Examination, Exception.
416-A:20. Examination, Exception.
The commissioner shall waive the requirement of such examination in the following cases:
I. Nonresident applicants who are licensed as title insurance agents in the states in which they reside, or if no license is required in said states, then nonresident applicants who have engaged in the business of title insurance for a period of 6 months;
II. Residents of the state who (a) have been engaged in the business of title insurance prior to September 10, 1971 or (b) prove to the commissioner that they have passed a course on insurance conducted by an insurance company or an educational institution which course the commissioner has approved;
III. Attorneys at law.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:21 Rules and Regulations.
416-A:21. Rules and Regulations.
The commissioner may make reasonable rules and regulations necessary to effect the purposes of this chapter.
Source. 1971, 561:1, eff. Sept. 10, 1971.
RSA 416-A:22 Applicability.
416-A:22. Applicability.
The provisions of this chapter shall apply to all title insurance companies, title insurance rating organizations, title insurance agents, applicants for title insurance, policyholders, and to all persons and business entities deemed to be engaged in the business of title insurance.
Source. 1971, 561:1, eff. Sept. 10, 1971.
Source: New Hampshire General Court (gc.nh.gov)URL: https://gc.nh.gov/rsa/html/NHTOC/NHTOC-XXXVII-416-A.htmFetched: 10/20/2026