HB 615 -- Missouri Title Insurance Act

Sponsor:  Smith

This bill makes changes to and reorganizes the Missouri Title
Insurance Act.  In its main provisions, the bill:

(1)  Expands the "definitions" section of the Act;

(2)  Requires a title insurer or title agent issuing a lender's
title insurance policy, when no owner's policy has been
requested, to give written notice to a purchaser/mortgagor that

the lender's policy does not protect the purchaser;

(3)  Requires a written contract setting forth the allocation of
responsibilities between a title insurer and a title insurance
agent, and delineates the title insurer's supervisory
responsibilities regarding title insurance agents;

(4)  Permits a title insurer or title insurance agent to operate
as an escrow, security, settlement, or closing agent if certain
listed requirements are complied with or met;

(5)  Lists the actions the Director of Insurance may take or
penalties that may be imposed against title insurers or title
insurance agents that violate the title insurance laws;

(6)  Prohibits an insurer that transacts any other class, type,
or kind of business from obtaining a title insurance license,
except that a title insurer can issue closing or settlement
protection;

(7)  Requires domestic and foreign title insurers to file an
actuarial certificate with the required annual audited financial
report and to establish a supplemental reserve accordingly;

(8)  Subjects all title insurers to the Missouri Uniform
Insurers Liquidation Act;

(9)  Prohibits a domestic title insurer from accepting certain
defined additional business without prior approval of the
director and sets forth guidelines for approval by the director;

(10)  Prohibits use of listed title insurance forms unless the
forms have been approved by the director;

(11)  Permits a title insurer to meet its obligations regarding
premium and form filing by becoming a member of or subscriber to
a rate service organization organized and licensed under this
Act;

(12)  Sets forth the requirements for the establishment and
licensure of a rate service organization;

(13)  Sets forth procedures for hearings and review of rate
filings; and

(14)  Requires all title insurance agents to be licensed, lists
the responsibilities and obligations for licensure, and details
the title insurance continuing education requirements.

This bill contains penalty provisions.

This bill has an effective date of January 1, 2000.