Missouri Revised Statutes
Chapter 381 - Title Insurance Law
Section 381.023 - Underwriting claims and escrow practices, review of, required when — standards for review.

Effective - 01 Jan 2008
381.023. Underwriting claims and escrow practices, review of, required when — standards for review. — 1. A title insurer shall, at least annually, conduct an on-site review of the underwriting, claims, and escrow practices of the title agency or agent with which it has a contract. If the title agency or agent does not maintain separate fiduciary trust accounts for each title insurer it represents, the title insurer shall verify that the funds held on its behalf are reasonably ascertainable from the books of account and records of the title agency or agent.
2. Each title insurer authorized to do business in Missouri shall adopt and utilize the following standards and procedures for the on-site review of title agencies and agents. On-site review documentation, work papers, summaries, and reports shall be maintained by each title insurer for a period of at least four years and shall be made available to the director for examination upon request. A report shall be prepared by the title insurer at the completion of the on-site review setting forth the title insurer's findings. On-site review findings shall include, but not be limited to, the following:
(1) A review of contracts between the title insurer and the title agency or agent;
(2) A confirmation that the title agency or agent has prepared an annual statement of financial condition of the title agency or agent, certified by the title insurance agent or designated agent of the title agency under oath or by affirmation as being a true and accurate representation of financial condition;
(3) A review of policies and practices related to conflicts of interest affiliated business arrangements, and regulatory compliance;
(4) Reconciliation of orders with commitments, title searches, title policies, and collection of premiums;
(5) A review of the agent's procedures for tracking issued commitments;
(6) A review of the practices to cancel commitments on transactions that do not close;
(7) A review of the procedures for follow-up after closing to track status of outstanding conditions required for timely issuance of policies;
(8) A review of the procedures for voiding policies;
(9) A review of the tracking of open escrow, security, settlement or closing files;
(10) A review of issued policy reports to the title insurer by the title agency or agent;
(11) A review of any files awaiting policy issuance that includes a determination of the average length of time between closing and the issuance of the title policy; and
(12) A review of a three-way reconciliation of bank balance, book balance and escrow trial balance for each individual escrow bank account.
3. If the title agency or agent is an agency or agent for two or more title insurers, the title insurers may cooperate in complying with the requirements of this section and shall be exempt from liability for sharing findings with other title insurers represented by the agency or agent.
4. The title insurer shall provide a copy of the report of each such review it performs to the director. The director shall promulgate rules setting forth the minimum threshold level at which a review would be required, the standards thereof and the form of report required.
5. A violation of any provision under this section is a level two violation under section 374.049.
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(L. 2007 S.B. 66)
Effective 1-01-08

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Structure Missouri Revised Statutes

Missouri Revised Statutes

Title XXIV - Business and Financial Institutions

Chapter 381 - Title Insurance Law

Section 381.011 - Citation of law — purpose statement.

Section 381.015 - Title insurance commitment, required statement, when — lender's insurance policy without owner's title insurance, notice given when, contents, retention — penalty for violation.

Section 381.018 - Written contract with title insurer required for commitment or policy issuance, statement of financial condition when, contents, review and notification requirements, inventory, proof of licensure, penalty for violation.

Section 381.019 - Required disclosures.

Section 381.022 - Title insurer, agency or agent not affiliated with a title agency may operate as an escrow, security, settlement or closing agent, when, penalty for violations.

Section 381.023 - Underwriting claims and escrow practices, review of, required when — standards for review.

Section 381.024 - Denial of access and failure to cooperate prohibited, penalty.

Section 381.025 - Consideration for referrals, when, penalty.

Section 381.026 - Recording of deeds and security instruments.

Section 381.029 - Affiliated business — definitions — requirements — rules — violations.

Section 381.038 - Retention of records required, limitation, penalty for violation.

Section 381.042 - Rules, authority, procedure.

Section 381.045 - Violations, penalties.

Section 381.048 - Court actions authorized, when.

Section 381.052 - Persons authorized to conduct title insurance business.

Section 381.055 - Powers of title insurer.

Section 381.058 - License required for insurer to transact business of title insurance, exclusive to other types of insurance business, limitations — closing or settlement protection authorized.

Section 381.062 - Establishment and maintenance of minimum paid-in capital and paid-in initial surplus necessary for insurance business license.

Section 381.065 - Net retained liability limits, maximum amount — reinsurance allowed — waiver by director of risk, when.

Section 381.068 - Investment in title plant, amount restricted, considered asset.

Section 381.071 - Insurer's duties, policies — examination of title, determination of insurability — showing of liens against title — records kept, duration — exceptions to requirements.

Section 381.072 - Reserve requirements, reserve to cover all known claims — unearned premium reserve, amount, actuarial certification required, supplemental reserve, amount, deadline.

Section 381.075 - Additional insurance laws applicable to title insurers, insurer's supervision, rehabilitation and liquidation act, exceptions — liquidation or insolvency, treatment of security and escrow funds, filing of claims, cancellation of pol...

Section 381.085 - Forms, director to approve before use — contents concerning coverage of policy, when included — disapproval by director, procedure.

Section 381.112 - Premium tax, premium income defined.

Section 381.115 - Licensing required for title agencies and title agents, exceptions — delegation of title searches to third party, rules — violations, penalty.

Section 381.118 - Examination required — education requirements, exemptions — approved courses and programs — teaching credit — credits may be carried forward — extensions and waivers — certification to director of completion — nonresidents — rules —...

Section 381.122 - Director authorized to inspect books and records.

Section 381.161 - Contract of title insurance through specific agent, agency, or insurer prohibited.

Section 381.400 - Definitions.

Section 381.403 - Title insurance companies and agents may enter into construction escrow agreements and issue insured closing letters.

Section 381.405 - Construction and guaranty agreements not authorized for title insurance companies — title insurance against mechanic liens and insured closing letters, authorized.

Section 381.410 - Definitions.

Section 381.412 - Settlement agents, accepting funds, exemption — title insurer, deposit of funds — violation, fine.