HB 2026 -- Title Insurance

Sponsor:  Kratky

This bill requires title insurers to conduct annual onsite
reviews of any title insurance agency or agent with whom they
have a contract.  The insurer will review the agency's or agent's
contracts, financial statements, management practices, and
procedures.  The Director of the Department of Insurance will be
provided with a copy of each report.  Title agencies or agents
are prohibited from denying reasonable access during a review.

A title insurer is liable for the defalcation (default),
conversion, or misappropriation of funds held in trust by a
licensed title insurance agent or agency who is acting as an
agent for the insurer.  If more than one title insurer is
involved, the insurer or insurers having coverage prior to the
illegal act will be liable.

The department director can establish a fee of up to $2 per title
insurance policy to be deposited into the Department of Insurance
Dedicated Fund for expenditures relating to the bill.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:45 am