Texas Statutes
Subchapter B. Policy Provisions
Section 2703.052. Duty of Title Insurance Company

Sec. 2703.052. DUTY OF TITLE INSURANCE COMPANY. (a) On a report to a title insurance company made by an insured after a title insurance policy has been issued that a lien, encumbrance, or title defect exists that is not excepted under the policy or otherwise excluded from coverage, the company shall promptly investigate to determine whether the lien or encumbrance is valid and not barred by statute or other law.
(b) A title insurance company that concludes that a valid lien or encumbrance that is not barred by statute or other law exists or that a title defect exists shall:
(1) institute all necessary legal proceedings to clear the title to the property;
(2) indemnify the insured according to the terms of the policy;
(3) reinsure at current value the title to the property without making exception to the lien, encumbrance, or defect or indemnify another insurer for reinsuring the title without making exception to the lien, encumbrance, or defect;
(4) secure a release of the lien, encumbrance, or defect; or
(5) take a combination of the actions described by this subsection.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.

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