Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 500 - Property and Casualty
Chapter 7 - Title
Section 20 CSR 500-7.070 - Affiliated Business Arrangements
Universal Citation: 20 MO Code of State Regs 500-7.070
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This regulation prescribes requirements for disclosure to customers and reporting to the director of affiliated business arrangements.
(1) Disclosure to Customer.
(A) It is unlawful for a title
insurer, title agency or title agent to accept an order for title services from
any producer with an affiliated business arrangement, unless contemporaneous
with the referral, the title insurer, title agency or title agent discloses the
affiliated business arrangement or has taken reasonable steps to verify that
the producer has disclosed the arrangement. Disclosure to its customer of the
existence of the affiliated business arrangement may be made by using the
Affiliated Business Disclosure form (Form T-4), or any form that substantially
comports with the specified form.
(B) The disclosure required by this rule may
be made in combination with all disclosures made under rule
20 CSR
500-7.050.
(2) Annual Reports.
(A) The Agency Financial Interest Report.
1. Title agencies are required under section
381.029.3, RSMo, to report the agency's owners, the agency's ownership
interests in other persons or businesses, and material transactions between the
parties. Such report shall be filed with the department by March 31 of each
year using The Agency Financial Interest Report (Form T-5A). Title agencies
shall update and resubmit this Form T-5A within thirty (30) days of any
material change to the information submitted regarding the agency's financial
interests, parties with financial interests in the agency, or parties with
financial interests in the insurer, agency, or agent who are producers or
associates of producers.
2.
Information related to material transactions collected pursuant to Form T-5A
will be treated by the department as a trade secret as defined by section
417.453(4),
RSMo, inasmuch as such information possesses
economic value by virtue of its confidential status; the same or like
information is unavailable through other sources; and insurers have made
reasonable efforts to maintain the confidentiality of the data. As such, all
information submitted pursuant to Form T-5A, shall be considered confidential
communications and immune from requests made under Chapter 610, RSMo, nor shall
such information otherwise be made available to the public or unauthorized
individuals except in response to a valid court order.
(B) The Affiliated Business Arrangement
Report. Title insurers, agencies, and agents are required under section
381.029.4, RSMo, to file reports with the director setting forth the names and
addresses of any persons with a financial interest in the insurer, agency, or
agent, which the insurer, agency, or agent knows to be producers or associates
of producers, except the duty to report shall not include shareholders of
record of any publicly-traded insurer. Such report shall be filed with the
department by March 31 of each year using The Affiliated Business Arrangement
Report (Form T-5B).
*Original authority: 374.045, RSMo 1967, amended 1993, 1995; 381.029, RSMo 2007; and 381.042, RSMo 2000, amended 2007.
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