That is terrible.  If Kansas is anything like Ohio, the licensing test is not an "abstracting" test, but a general title insurance test.  It requires knowledge of principals of abstracting, escrow, and insurance.  I would not be surprised if most "searchers" would fail such a test. 

In Ohio, in order to take the test, you have to be sponsored by an underwriter and that is the toughest part.  The underwriters are not looking to take risks and they want to be sure that their agents are knowledgeable if they are going to be writing policies and incuring liability on behalf of the underwriter.  Of course, the toughest problem the searchers have is that they don't write premium, so there is nothing in it for the underwriter.  The underwriters have expenses to keep their agents licensed as well.  They have fees that must be paid and they also provide the continuing education that is required.

It seems to me that Kansas is going to go back to the way things worked 15 years ago - when there were no independents.  All of the searchers will have to employed by the agents, in order to get licensed under a policy issuing representative of an underwriter.

I wonder what this will do to all of those companies in Coraopolis, PA, and elsewhere, that service the whole country.  It seems like such a bill would prohibit them from working in Kansas, which will create more work for the local title companies.  I just don't know how such a bill would be enforced against out-of-state companies unless the aim is just to put all of the independents out of business so they have nobody to do their work.

Let's hear from some others in Kansas and see how they are dealing with this new legislation. I'd also like to know where ALTA was??  Why did they not lobby to protect their members who were adversely affected?  This is exactly why we need an organization like NALTEA... nobody else is looking out for the abstractors. 

This is what I have been clamoring about for the past three years... NALTEA needs more members to effectively address these kinds of issues.  Others may just be seeing this as an issue in Kansas that does not affect them, but what happens when they try the same thing in other states??  If we all band together, we would have a voice that would be larger than any of us individually. 

I also wonder how this law effects attorneys.  Are they exempted from the law?  Providing an opinion of title, or conducting a title search, has other uses besides title insurance and, normally, it is considered the practice of law (whether or not that is enforced is a different issue).  Do attorneys need to be licensed and have an underwriter to do a title search for a client?  Seems ridiculous to require such a thing.  Maybe you should contact the bar association and see if they have an opinion on this.

Best,
Robert A. Franco
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