RE: Required Report Filings for All Underwritten Title Companies and/or Controlled Escrow Companies Required to Report to the Insurance Commissioner of the State of California

Blank copies of the Annual and Quarterly/Monthly reports are available on the California Department of Insurance Website. The Annual and Quarterly/Monthly reports are to be filed online using (OASIS) Online Assistance System for Insurer Submittal, pursuant to California Insurance Code (CIC) Section 12389(a)(4). Please submit a paper copy of the pages containing original signatures on or by before the reporting deadline to the following address:

California Department of Insurance
Financial Analysis Division
300 South Street, South Tower, 13th Fl
Los Angeles, CA 90013

Your Audited Annual Report and the filing fee of $564.00 must be filed with the Department of Insurance by the required due date March 31, 2012. Noncompliance with the filing of this report and/or any deviations from the instructions for completing this report will cause it to be deemed an incomplete filing and subject to the fees provided for in CIC Section 12389(a)(4). State filing fees must be submitted online utilizing (OASIS) Online Assistance System for Insurer Submittal. Submission of the Annual Audit Report will not be allowed until the filing fee is paid online.

Please be advised that the Department is concerned with the financial condition of an Underwritten Title Company when its working capital and net worth falls under any of the following categories and shall be required to file its financial statement on a monthly reporting basis:

1. Its net worth is less than 150% of the statutory minimum net worth requirement.
   
2. Its current operating trends demonstrate that the company will not be able to comply with the statutory minimum net worth or minimum working capital requirements within six to twelve months from reporting period.

In addition to the monthly reporting requirement, the Department of Insurance will require the company to submit a plan of operation enumerating the corrective actions it plans to take to the methods it proposes to adopt in order to strengthen its financial condition.

Please be advised that the company will be billed for the time spent by the analyst in reviewing its statements and communicating with the company. Therefore, in order to minimize the cost to be charged to the company, the Department encourages the company's management to plan ahead to seek out additional sources of funds for capital contribution when it projects that further slow down of its business will jeopardize the company's financial stability.

Please be advised that the company will be billed for the time spent by the analyst in reviewing its statements and communicating with the company.

Please notify your certified public accountant or public accountant accordingly.

Dave Jones Insurance Commissioner

By: Financial Analysis Division, Chief
Deputy Insurance Commissioner
Financial Surveillance Branch