Section 381.038

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 381

Effective - 01 Jan 2008, see footnote   

  381.038.  Retention of records required, limitation, penalty for violation. — 1.  For the purposes of this section, the term "direct operations" means that portion of a title insurer's operations which are attributable to business written by a bona fide employee.

  2.  Records relating to escrow and security deposits shall be preserved and retained by a title insurer engaged in direct operations, title agency, and title agent for as long as appropriate to the circumstances but, in no event less than seven years after the escrow or security deposit account has been closed.

  3.  A title agent and a title agency shall remit premiums to the title insurer under the term of its agency contract, but in no event later than within sixty days of receiving an invoice from the title insurer.  A title insurer, title agency, or title agent shall promptly issue each title insurance policy within forty-five days after compliance with the requirements of the commitment for insurance, unless special circumstances as defined by rule delay the issuance.

  4.  This section shall not apply to a title insurer acting as coinsurer if one of the other coinsurers has complied with this section, and shall not apply to a reinsurer.

  5.  A violation of any provision under this section is a level two violation under section 374.049.

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(L. 2000 S.B. 894, A.L. 2007 S.B. 66)

Effective 1-01-08