Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 500 - Property and Casualty
Chapter 7 - Title
Section 20 CSR 500-7.060 - Disclosure of Coverage Limitation

Universal Citation: 20 MO Code of State Regs 500-7.060

Current through Register Vol. 49, No. 6, March 15, 2024

PURPOSE: This regulation prescribes requirements for customer disclosure for limitations of coverage in some circumstances.

(1) Lender's Title Insurance Limitation. Pursuant to section 381.015.2, RSMo, in those purchase transactions where a lender's title insurance policy is to be issued simultaneously with the purchase of all or part of the real estate securing the loan and where no owner's title insurance policy has been requested, a title insurer, title agency, or title agent shall give written notice that the lender's title insurance policy does not provide title insurance protection to the purchaser-mortgagor, and that the purchaser-mortgagor may obtain an owner's title insurance policy within sixty (60) days of closing at a specified or approximate cost. The disclosure shall be made using a Notice of Availability of Owner's Title Insurance form (Form T-2), or any form that substantially comports with the specified form.

(2) Closing and Settlement Risk.

(A) Title insurers, agencies and agents making disclosure under subsections 5 and 6 of section 381.022, RSMo, may make this disclosure to the unprotected person with a Notice of Closing or Settlement Risk form (Form T-3), or any form that substantially comports with the specified form.

(B) The authority of a title insurer under section 381.058.3, RSMo, to issue a closing protection letter extends only to transactions in which it is issuing a title insurance policy and its issuing agent or agency is performing closing or settlement services.

*Original authority: 374.045, RSMo 1967, amended 1993, 1995; 381.015, RSMo 2000, amended 2007; 381.022, RSMo 2000, amended 2007; and 381.042, RSMo 2000, amended 2007.

Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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