Section 381.018

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 381

Effective - 01 Jan 2008, see footnote   

  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. — 1.  The title insurer shall not allow the issuance of its commitments or policies by a title agency or title agent not affiliated with a title agency unless there is in force a written contract between the parties.

  2.  The title insurer shall maintain an inventory of all policy numbers allocated to each title agency or title agent not affiliated with a title agency.

  3.  The title insurer shall have on file proof that the title agency or title agent is licensed by this state at the time a written contract is entered into or before it becomes effective.

  4.  The title insurer shall establish the underwriting guidelines and, where applicable, limitations on title claims settlement authority to be incorporated into contracts with its title agencies and title agents not affiliated with a title agency.

  5.  If a title insurer terminates its contract with a title agency licensed under this chapter, the insurer shall, within seven days of the termination, notify the director of the reasons for termination, including any information that is required to be reported under subsection 5 of section 375.022.

  6.  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