TO: UNDERWRITTEN TITLE COMPANIES AND/OR CONTROLLED ESCROW COMPANIES REQUIRED TO REPORT TO THE INSURANCE COMMISSIONER OF THE STATE OF CALIFORNIA
SUBJECT: ANNUAL AND QUARTERLY STATEMENT FILINGS
The purpose of this notice is to advise you that you are required to file an Annual Audit Report and Quarterly Financial Statement with the California Department of Insurance ("CDI"). The fee for filing the Annual Audit Report is $564.00. Submission of the Annual Audit Report will not be allowed until the filing fee is paid on line. Any company that fails to file the Annual Audit Report or any other reports or deviates from the instructions for completing these reports will be subject to a penalty fee pursuant to the California Insurance Code Section 12389(a)(4).
Please be advised that CDI will be requiring a company to file its financial statement on a monthly basis when its financial condition falls under any of the following two categories:
- Its net worth is less than 150% of the statutory minimum net worth requirement.
- Its current operating trend demonstrates that it will not be able to comply with the statutory minimum net worth and/or working capital requirements.
In addition, CDI will be requiring the company to submit a plan of operation enumerating the corrective actions it plans to take and the methods it proposes to adopt in order to strengthen its financial condition. The company will be billed for the time spent by the financial analyst in reviewing its financial statements and communicating with the company. In order to minimize the cost to the company, CDI encourages management of the company to plan ahead and seek additional sources of capital contribution when they become aware that the company's financial stability is at risk.
All filings, unless otherwise noted, must be submitted using Online Assistance System for Insurer Submittals (OASIS).
For any document requiring original signatures, please mail the signature page(s) to:
California Department of Insurance
Financial Analysis Division
300 South Spring Street, South Tower, 13th Floor
Los Angeles, CA 90013
Attention: Financial Records Unit
For questions or inquiries, please contact:
Financial Records Unit
Phone: (213) 346-6423
Deputy Insurance Commissioner
Financial Surveillance Branch