TDI Posts Examination Results for Fiscal 2018

02 Jan

TDI Posts Examination Results for Fiscal 2018

The Texas Department of Insurance (TDI) recently posted the finding of the title examinations for its fiscal year that ended in August 2018.  Below are the results of the audits conducted over the previous 12 months.  The goal of TDI is to audit each agent every two years and conducted 502 audits (86.8 percent) over the last two years.

Below is the list of top ten violations or discrepancies that were found within the last fiscal year.  The number represents the number of agencies where the infraction occurred and not the number of times it occurred. 

(# of Agencies)
Violation or Discrepancy
166 Actual receipts and/or disbursements not in agreement with settlement statement of Premium split notdisclosed. (Section 2702.053)
129 Failure to prepare/maintain Form T-64 (TD) when CD used. (P-73)  
128 Every disbursement not supported by invoice or sufficient other evidence.  (Minimum Accounting Procedures #16)
128 Outstanding checks not cleared timely. (Escrow Accounting)  
98 Schedule D of commitment not in file or premium splitnot disclosed on commitment. (P-21)
77 Disbursement sheets missing, incomplete, or incorrect. (Minimum Accounting Procedures #15)
64 All parties receiving portions of the real estate commission not disclosed on settlement statement.  (Title Bulletin No. 160)
60 No T-00 in file or T-00 incorrect or incomplete.  (P-22)
57 Funds not disbursed or escheated to state. (Guaranty Files)  
48 Quarterly tax reports not submitted timely.
(Minimum Capitalization Rules)

The table above illustrates the most common and frequent discrepancies found by TDI during the audits of the past year.  Be sure to review your company policies to make sure that you have procedures in place to stay in compliance and not be one of the agencies that end up on the list.  First National Title is always available for assistance in following any of these procedures.  Please call your agency representative for more information.

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