§6713 — Title 15 Commerce and Trade | U.S. Code

Summary

National banks are not allowed to underwrite or sell title insurance. But if a state lets its state-chartered banks sell title insurance as agents, a national bank may also sell title insurance as an agent in that state, and only in the same way, to the same extent, and under the same limits as those state banks. A state law that only lets state banks do other bank activities does not count as permission to sell title insurance as an agent. A national bank or its subsidiary may keep doing title insurance work it was actively and lawfully doing before November 12, 1999. However, if the bank has an affiliate (not a subsidiary) that sells insurance as the main seller, the bank and its subsidiaries may not underwrite title insurance. If the bank’s only insurance seller is a subsidiary and it has no other insurance-selling affiliates, the bank itself may not underwrite. “Affiliate” and “subsidiary” mean the same as in section 1841 of title 12. Any state law in effect before November 12, 1999 that bans title insurance in that state stays in force.

Title 15, §6713

Commerce and Trade — Source: USLM XML via OLRC

(a)No national bank may engage in any activity involving the underwriting or sale of title insurance.

(b)(1)Notwithstanding any other provision of law (including section 6701 of this title), in the case of any State in which banks organized under the laws of such State are authorized to sell title insurance as agent, a national bank may sell title insurance as agent in such State, but only in the same manner, to the same extent, and under the same restrictions as such State banks are authorized to sell title insurance as agent in such State.

(2)A State law which authorizes State banks to engage in any activities in such State in which a national bank may engage shall not be treated as a statute which authorizes State banks to sell title insurance as agent, for purposes of paragraph (1).

(c)(1)Except as provided in paragraphs (2) and (3) and notwithstanding subsections (a) and (b), a national bank, and a subsidiary of a national bank, may conduct title insurance activities which such national bank or subsidiary was actively and lawfully conducting before November 12, 1999.

(2)In the case of a national bank which has an affiliate which provides insurance as principal and is not a subsidiary of the bank, the national bank and any subsidiary of the national bank may not engage in the underwriting of title insurance pursuant to paragraph (1).

(3)In the case of a national bank which has a subsidiary which provides insurance as principal and has no affiliate other than a subsidiary which provides insurance as principal, the national bank may not directly engage in any activity involving the underwriting of title insurance.

(d)For purposes of this section, the terms “affiliate” and “subsidiary” have the same meanings as in section 1841 of title 12.

(e)No provision of this Act or any other Federal law shall be construed as superseding or affecting a State law which was in effect before November 12, 1999, and which prohibits title insurance from being offered, provided, or sold in such State, or from being underwritten with respect to real property in such State, by any person whatsoever.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (e), is Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1338, known as the Gramm-Leach-Bliley Act. For complete classification of this Act to the Code, see

Short Title

of 1999 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.

§6713 Title insurance activities of national banks and their affiliates