Disclosure of Premiums and Charges

PURPOSE: This rule implements the disclosure of material price information pursuant to sections 381.019 and 375.144, RSMo. (1) Disclosure with Title Order. (A) When a prospective purchaser of title insurance or other party to the residential real estate transaction contacts a title insurer, title agency, or title agent to order a title insurance policy, the following price estimate must be disclosed: 1. Title insurance premium as calculated based upon the filed title insurance risk rate(s); 2. Closing protection fee as calculated based upon the filed closing protection rate; 3. Title service charges including, but not limited to, abstracts and search and examination fees; and 4. Closing or settlement charges. (B) The above items, if applicable, may be disclosed orally or in writing. (C) If the above prices are disclosed, the amount may also be totaled. (D) Upon further inquiry or request by a prospective purchaser of title insurance or other party to the residential real estate transaction for explanation, the title insurer, title agency, or title agent may disclose orally that title premium and closing protection fee are determined by rate schedules filed with the state, but if so disclosed, shall at the same time also disclose that the title service charges, closing charges, and other charges are not filed with the state. (E) If the title insurer, title agency, or title agent discloses the above information in writing when giving a price estimate, the following disclosure statement (Form T-1), or a statement that substantially comports with the following, is acceptable: Title Insurance Premium and Title Service Charge Disclosure Statement To: _______________ Based upon the information available to us at this time, we estimate that you will pay, as part of your residential real estate transaction, the following premiums, charges, and/or fees: 1) Title insurance premium ________ 2) Closing protection fee(s) ________ 3) Title service charge(s) (i.e., search and examination, clearing items, etc.) ________ 4) Closing charge(s) ________ Title insurance premium and a closing protection fee have been calculated according to rates filed with the Missouri Department of Commerce and Insurance. However, title service charges, closing charges, and other fees are not limited by state law. For further general information regarding title insurance, you may visit the Missouri Insurance website at www.insurance.mo.gov, or call the Missouri Department of Commerce and Insurance at (800) 726-7390. ___________________ ______________________________ Date Title Agent (2) Disclosure at a Residential Real Estate Closing. Title insurance premium, fee and charge disclosure at the closing of a residential real estate transaction shall be made in the following manner: (A) Closings that involve use of a HUD-1 form. 1. Premium should be the only amount totaled on the “Title Insurance” line, usually line 1108. If multiple title insurance policies are reflected in the “Title Insurance” line, the premium amounts associated with each title insurance policy shall be distinguished on the HUD-1 form on a line other than the “Title Insurance” line. 2. Other charges including, but not limited to, the closing protection fee, abstract or title search and examination fees, escrow, settlement or closing fees, or other associated charges or fees shall be listed on lines other than the “Title Insurance” line; or (B) Closings that do not require use of a HUD-1 form. Disclosure shall be made on a disclosure form in substantially the same format as the form set forth in subsection (1)(E) of this rule, but with final price detail and an acknowledgement of receipt by the purchaser. (3) Misleading or Confusing Terms in Marketing Materials. (A) Title insurers, title agencies and title agents shall not use the terms “rate,” “card rate,” “premium” or other terms of similar import in marketing materials to describe an all-inclusive title insurance price, which aggregates both: 1. Premium; and 2. Charges that may be negotiable in the particular transaction. (B) The total amount in subsection (1)(C) of this rule may be described in terms which convey both premium and charges, such as “total cost for title insurance and services” or “total cost for title insurance and charges.” AUTHORITY: section 374.045, RSMo 2000 and sections 381.019 and 381.042, RSMo Supp. 2007.* Emergency rule filed Jan. 16, 2008, effective Jan. 28, 2008, expired July 14, 2008. Original rule filed Jan. 16, 2008, effective Sept. 30, 2008. Non-substantive change filed Sept. 11, 2019, published Oct. 31, 2019. *Original authority: 374.045, RSMo 1967, amended 1993, 1995; 381.019, RSMo 2007; and 381.042, RSMo 2000, amended 2007.