Standards for Policy Issuance

PURPOSE: This rule implements section 381.071, RSMo 2000 relating to the duties of a title insurance company before writing a title insurance policy. (1) Examination of Title. Before a title insurance policy is written, the title insurer or its licensed agent shall cause a search of the title which is to be insured. The search of the title shall be based upon evidence prepared from a current set of records maintained in order to show all matters affecting the title to the property or interest which is to be insured for a continuous period of not less than the immediate past forty-five (45) years, except for the time table allowed by section 381.071.1(1), RSMo (Cum. Supp. 1989) for a gradual compliance. The set of records used in the search of the title shall be indexed geographically and shall encompass all properties in the county for which the set of records is maintained. (2) Exceptions. (A) An attorney licensed to practice law in this state is not required to base an examination of title upon a set of records geographically indexed if s/he personally inspected the best title evidence available. (B) If a set of records geographically indexed is not in existence in the county where the property subject to examination of title is located, the title insurance policy shall be based upon the best title evidence available. (C) If evidence for an examination of title cannot be obtained from a set of records geographically indexed at a reasonable charge or within a reasonable period of time, the title insurance policy shall be based upon the best title evidence available. (D) The best title evidence available is that evidence which a reasonable and prudent person would depend upon in the conduct of his/her own affairs as determined by the circumstances in existence in the county where the subject property is located. (3) Documentation. (A) The individual who performed the examination of title on behalf of the title insurer shall verify in a written statement where s/he obtained the evidence used in the examination of title. If the title examiner followed any of the exceptions as stated in section (2) of this regulation, s/he shall state in the written statement, in clear and specific terms, the reasons for following any exception. (B) The written statement required by subsection (3)(A) of this regulation shall be placed in and made a part of the title insurance company’s files or that of its agent or agency for a period of not less than fifteen (15) years after the title insurance policy has been issued. (C) The director shall maintain a Missouri title plant registry. Any entities which can be defined as a title plant pursuant to section 381.031(22), RSMo Cum. Supp. 1989, shall annually file with the director a registration statement in a Title Plant Registration form (Form T-12), or any form that substantially comports with the specified form. No filing fee is mandated. Form T-12 can be accessed at the department’s website at www.insurance.mo.gov or at the department offices. AUTHORITY: section 374.045, RSMo 2000 and section 381.042, RSMo Supp. 2007.* This rule was previously filed as 4 CSR 19020.060. Original rule filed Dec. 1, 1989, effective June 29, 1990. Amended: Filed April 23, 1999, effective Nov. 30, 1999. Emergency amendment filed Jan. 16, 2008, effective Jan. 28, 2008, expired July 14, 2008. Amended: Filed Jan. 16, 2008, effective Sept. 30, 2008. *Original authority 374.045, RSMo 1967, amended 1993, 1995 and 381.042, RSMo 2000, amended 2007.