AB 2196

Bill Subjects

Abstract

Under existing law, a policy of title insurance insures, guarantees, or indemnifies owners of real or personal property, or the holders of liens or encumbrances on that property, or others interested in the property against loss or damage suffered by reason of liens or encumbrances on, or defects in the title to the property, invalidity or unenforceability of any liens or encumbrances on the property, or incorrectness of searches relating to the title to real or personal property. This bill would require that coverage under a policy of title insurance continue to the transferee when title is transferred to a trustee of the insured's revocable living trust of which the insured is a beneficiary with the power to revoke, or, if the trustee of a trust is the insured under the policy, when title is transferred by the trustee to the trust's settlor in his or her individual capacity. The provisions would only apply to policies of title insurance issued on or after January 1, 2015.