Current through Register Vol. 49, No. 6, March 15, 2024
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.
*Original authority 374.045, RSMo 1967, amended 1993, 1995
and 381.042, RSMo 2000, amended
2007.
