Missouri Revised Statutes
Chapter 381 - Title Insurance Law
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.

Effective - 28 Aug 2016, 2 histories
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. — 1. No insurer that transacts any class, type, or kind of business other than title insurance shall be eligible for the issuance or renewal of a license to transact the business of title insurance in this state nor shall title insurance be transacted, underwritten, or issued by any insurer transacting or licensed to transact any other class, type, or kind of business.
2. A title insurer shall not engage in the business of guaranteeing payment of the principal or the interest of bonds or mortgages.
3. (1) Notwithstanding subsection 1 of this section or anything else to the contrary in sections 381.011 to 381.405, a title insurer is expressly authorized to issue closing or settlement protection letters (and to collect a fee for such issuance) in all transactions where its title insurance policies are issued and where its issuing agent or agency is performing settlement services and shall do so in favor of the applicable buyer, lender, or seller in all residential real estate transactions. Such closing or settlement protection letter form shall be filed with the director under section 381.085 and shall conform to the terms of coverage and form of instrument as required by rule of the director and shall indemnify a buyer, lender, or seller solely against losses not to exceed the amount of the settlement funds only because of the following acts of the title insurer's named issuing title agency or title agent:
(a) Acts of theft of settlement funds or fraud with regard to settlement funds; and
(b) Failure to comply with written closing instructions by the proposed insured when agreed to by the title agency or title agent relating to title insurance coverage.
(2) The rate for issuance of a closing or settlement protection letter in a residential real estate transaction indemnifying a lessee or purchaser of an interest in land, a borrower, or a lender secured by a mortgage, including any other security instrument, of an interest in land shall be filed as a rate with the director.
(3) The rate for issuance of a closing or settlement protection letter in a residential real estate transaction indemnifying a seller of an interest in land shall be filed as a separate rate with the director.
(4) Such filed rate shall not be excessive or inadequate. The entire rate for the closing or settlement protection letter shall be retained by the title insurer.
(5) Except as provided under this section or section 381.403, a title insurer shall not provide any other coverage which purports to indemnify against improper acts or omissions of a person with regard to escrow, settlement, or closing services.
­­--------
(L. 2000 S.B. 894, A.L. 2007 S.B. 66, A.L. 2016 S.B. 833)

<< Previous
Next >>

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.