50 unchanged sentences
Title Insurance Underwriting Operations:
−Removed: ITIC and NITIC issue title insurance through the Company’s home and branch offices and through a network of agents.
+Added: ITIC and NITIC issue title insurance policies directly and through a network of agents.
Issuing agents are typically real estate attorneys, independent agents or subsidiaries of community and regional mortgage lending institutions, depending on local customs and regulations and the Company’s marketing strategy in a particular territory.
2 unchanged sentences
Generally, premiums for title insurance are recorded and recognized as revenue at the closing of the related transaction, when the earnings process is considered complete.
−Removed: When the policy is issued directly through a home or branch office, the premiums collected are retained by the Company.
−Removed: When the policy is issued through a title insurance agent, the agent retains a majority of the premium as a commission and remits the net amount to the Company.
+Added: When the policy is issued directly, the premiums collected are retained by the Company.
+Added: When the policy is issued through a non-wholly owned title insurance agency, the agency retains a majority of the premium as a commission and remits the net amount to the Company.
Title insurance commissions earned by the Company’s agents are recognized as expenses concurrently with premium recognition.
The percentage of the premium retained by agents varies by region and is sometimes regulated by the states where the property is located.
−Removed: For a description of the level of net premiums written by direct and agency operations, refer to “Item 7.
+Added: For a description of the level of net premiums written directly and through agency operations, refer to “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K.
5 unchanged sentences
NITIC currently writes title insurance as a primary insurer in Texas, and as a reinsurer for ITIC.
−Removed: Premiums from title insurance written on properties located in North Carolina, Texas, Georgia and South Carolina represent the largest source of revenue for the title insurance segment.
−Removed: In North Carolina, a majority of the Company’s title insurance commitments and policies are issued through branch offices.
−Removed: In Texas, Georgia, South Carolina and other states, title policies are primarily issued through issuing agents.
+Added: Premiums from title insurance written on properties located in North Carolina, Texas, South Carolina and Georgia represent the largest source of revenue for the title insurance segment.
+Added: In North Carolina, a majority of the Company’s title insurance commitments and policies are issued directly.
+Added: In Texas, South Carolina, Georgia and other states, title policies are primarily issued through issuing agents.
For a description of the level of net premiums written geographically for significant states, refer to “Item 7.
12 unchanged sentences
The Company’s other lines of business include services offered by wholly owned subsidiaries ITEC, ITAC, Investors Trust, and ITMS.
−Removed: In 1988, the Company established ITEC to provide services in connection with tax-deferred exchanges of like-kind property pursuant to § 1031 of the Internal Revenue Code of 1986, as amended.
+Added: In 1988, the Company established ITEC to provide services in connection with tax-deferred exchanges of like-kind property pursuant to §1031 of the Internal Revenue Code of 1986, as amended (the “IRC”).
ITEC acts as a qualified intermediary in tax-deferred exchanges of real property held for productive use in a trade or business or for investment, and its income is derived from fees for handling exchange transactions and interest earned on client deposits held by the Company.
2 unchanged sentences
These transactions include reverse exchanges when taxpayers decide to acquire replacement property before selling the relinquished property, or “build to suit” exchanges, when improvements must be made to the replacement property before the taxpayer acquires the improved replacement property.
−Removed: The services provided by the Company’s exchange services division, ITEC and ITAC, are pursuant to provisions in the Internal Revenue Code.
+Added: The services provided by the Company’s exchange services division, ITEC and ITAC, are pursuant to provisions in the IRC.
From time to time, these laws are subject to review and changes, which may negatively affect the demand for tax-deferred exchanges in general, and consequently, the revenues and profitability of the Company’s exchange services division.
15 unchanged sentences
ITIC and NITIC strive to provide superior service to their customers and consider this an important factor in attracting and retaining customers.
−Removed: Branch and corporate personnel strive to develop new business and agency relationships to increase market share while ITIC’s Commercial Services Division focuses on services provided to commercial clients.
+Added: Company personnel strive to develop new business and agency relationships to increase market share while ITIC’s Commercial Services Division focuses on services provided to commercial clients.
Any material change in the Company’s regulatory environment may have an adverse effect on its business.
2 unchanged sentences
These regulations, among other things, require insurance holding companies to register and file certain reports, and require prior regulatory approval of the payment of extraordinary dividends and other intercompany distributions or transfers.
+Added: They also may require approval of the insurance commissioner prior to a third party directly or indirectly acquiring control of the insurer, which may make it difficult or prohibitive for a third party to acquire the Company.
Title insurance companies are extensively regulated under applicable state laws.
8 unchanged sentences
The CFPB has the authority to identify and address, through regulation, unfair, deceptive and abusive practices in the mortgage industry and certain other settlement service industries.
−Removed: In recent years, the CFPB, Office of the Comptroller of Currency and the Federal Reserve have issued memorandums to banks that communicated those agencies’ heightened focus on vetting third-party providers.
−Removed: Such increased regulatory involvement may affect the Company's agents and approved providers.
−Removed: Further proposals to change regulations governing insurance holding companies and the title insurance industry are often introduced in Congress, in state legislatures and before various insurance regulatory agencies.
+Added: Increased regulatory involvement may affect the Company and its service providers.
+Added: Proposals to change regulations governing insurance holding companies and the title insurance industry are often introduced in Congress, in state legislatures and before various insurance regulatory agencies, including the CFPB.
Although the Company regularly monitors such proposals, the likelihood and timing of passage of any such regulation, and the possible effects of any such regulation on the Company and its subsidiaries, cannot be determined at this time.
+Added: Certain laws and regulations, such as the cyber security requirements of governmental authorities, require the Company to maintain certain information security standards and practices.
+Added: Other laws and regulations regulate the manner in which the Company collects, uses, retains, protects, discloses, transfers, and processes personal data.
+Added: Following the enactment of the California Consumer Privacy Act, the Virginia Consumer Data Protection Act and the European Union General Data Protection Regulation, the Company expects the adoption of comprehensive data privacy laws in more jurisdictions in which it operates.
Exchange Services, Investment Management and Trust Services, and Management Services
13 unchanged sentences
INVESTMENT POLICIES
−Removed: The Company and its subsidiaries derive a substantial portion of their income from investments in municipal government securities and investment grade corporate fixed maturity securities and equity securities.
+Added: The Company and its subsidiaries derive a substantial portion of their income from investments in municipal and U.S.
+Added: government securities and investment grade corporate fixed maturity securities and equity securities.
The Company’s fixed maturity securities are classified as available for sale and carried at estimated fair value.
6 unchanged sentences
The Company’s investment portfolio did not include any significant investments in banks, trust or insurance companies at December 31, 2022 or 2021.
−Removed: Short-term investments, which consist primarily of money market instruments, have an original maturity of one year or less, are carried at cost, which approximates fair value due to the short duration to maturity.
+Added: Short-term investments, which consist primarily of money market funds and US treasury bills, have an original maturity of one year or less, are carried at cost, which approximates fair value due to the short duration to maturity.
In addition, at December 31, 2022 and 2021, the Company held investments that are accounted for using the equity method and measurement alternative method (refer to Note 1 of the Notes to the Consolidated Financial Statements).
13 unchanged sentences
The Company is an equal opportunity employer, committed to creating an inclusive culture that supports all employees and is free of discrimination based on gender, race, ethnicity, religion, disability or other legally protected characteristic.
−Removed: The current makeup of the Company's Board of Directors satisfies the Nasdaq Stock Market LLC's rules related to board diversity, prior to the Company’s compliance period for such rules.
+Added: The current makeup of the Company's Board of Directors complies with the Nasdaq Stock Market LLC's rules related to board diversity.
Compensation and Benefits
2 unchanged sentences
The Company’s ability to attract and retain key personnel who are necessary to the operation of the business is critical to its success.
−Removed: COVID-19 Pandemic
−Removed: The health and wellness of the Company’s employees is also critical to its success.
−Removed: In an effort to keep the Company’s employees safe during the COVID-19 pandemic, the Company has implemented a number of health-related measures, including protocols governing social distancing and the use of face masks while on company property, a flexible policy for working from home, cleaning procedures at the Company’s corporate headquarters, and limitations on in-person meeting and other gatherings.
ADDITIONAL INFORMATION
−Removed: The Company files annual, quarterly and current reports and other information with the Securities and Exchange Commission (“SEC”).
+Added: The Company files annual, quarterly and current reports and other information with the SEC.
The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.
26 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.