HB 124 -- Title Insurance

Sponsor:  Ward

The bill makes changes to and reorganizes the Missouri Title
Insurance Act.  In its main provisions, the act:

(1)  Expands the definitions section;

(2)  Requires a title insurer or title agent issuing a lender's
title insurance policy, when no owner's policy has been
requested, to give written notice to a purchaser/mortgagor that
the lender's policy does not protect the purchaser;

(3)  Requires a written contract setting forth the allocation of
responsibilities between a title insurer and a title insurance
agent and delineates the title insurer's supervisory
responsibilities regarding title insurance agents;

(4)  Permits a title insurer or title insurance agent to operate
as an escrow, security, settlement, or closing agent if certain
listed requirements are complied with or met;

(5)  Lists the actions the Director of the Department of
Insurance may take or penalties that may be imposed against title
insurers or title insurance agents that violate the title
insurance laws;

(6)  Prohibits an insurer that transacts any other class, type,
or kind of business from obtaining a title insurance license,
except that a title insurer can issue closing or settlement
protection;

(7)  Requires domestic and foreign title insurers to file an
actuarial certificate with the required annual audited financial
report and to establish a supplemental reserve accordingly;

(8)  Subjects all title insurers to the Missouri Uniform Insurers
Liquidation Act;

(9)  Prohibits the use of listed title insurance forms unless the
forms have been approved by the director;

(10)  Permits a title insurer to meet its obligations regarding
premium and form filing by becoming a member of or subscriber to
a rate service company organized and licensed under the act;

(11)  Sets forth procedures for hearings and review of rate
filings;

(12)  Sets forth requirements for the establishment and licensure
of a rate service company; and

(13)  Requires all title insurance agents to be licensed, lists
the responsibilities and obligations for licensure, and details
title insurance continuing education requirements.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:10 am