(a) Minimum requirements.

1. (1) At least one (1) time each year, a title insurer shall conduct an on-site audit of its appointees’ escrow accounts, security arrangements, files, underwriting and claims practices, closing protection letters, and policy inventory of the title insurance agencies that it has authorized to issue title insurance reports or policies on its behalf.
2. (2) If the title insurance agency fails to maintain separate escrow or trust accounts for each title insurer it represents, the title insurer shall verify that the funds related to closings in which the title insurer's policies are issued are reasonably ascertainable from the books of account and records of the title insurance agency.