Title InsuranceGeneral Powers

Section § 12390

Explanation

This law allows domestic title insurers in California to not only issue title policies but also provide insurance for various legal and financial aspects. They can insure the identity, proper signing, and legal standing of notes or bonds secured by a mortgage. They can also cover these aspects, plus the official record-keeping, of mortgages themselves. Additionally, they may insure state and local government debts or those from private corporations.

Every domestic title insurer may issue title policies and may also insure:
(a)CA Insurance Code § 12390(a) The identity, due execution, and validity of any note or bond secured by mortgage.
(b)CA Insurance Code § 12390(b) The identity, due execution, validity and recording of any such mortgage.
(c)CA Insurance Code § 12390(c) The identity, due execution and validity of evidences of indebtedness issued by this State, or by any political subdivision or district therein, or by any private or public corporation.
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Section § 12391

Explanation

This law section outlines additional permitted actions for insurance companies. They can serve as a registrar or transfer agent for the state, local governments, or both public and private corporations. Additionally, these companies can transfer or sign off on financial documents or stock certificates that they insure.

Such insurer also may:
(a)CA Insurance Code § 12391(a) Act as registrar or transfer agent of this State, or of any political subdivision or district therein, or of any private or public corporation.
(b)CA Insurance Code § 12391(b) Transfer or countersign any evidences of indebtedness which it may insure.
(c)CA Insurance Code § 12391(c) Transfer or countersign certificates of stock of any private or public corporation.
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Section § 12394

Explanation

A title insurer must follow all insurance laws and regulations related to its title insurance department. It can invest the assets of its title insurance department and any profits from those investments in the ways permitted by state laws.

A title insurer, as to its title insurance department, shall be subject to and shall comply with all the requirements of the insurance laws and the rules and regulations of the commissioner. It may invest its assets apportioned to its title insurance department, and the accumulations therefrom, in the manner in which the assets of title insurers are allowed by the laws of this state to be invested.
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