381.058. License required for insurer to transact business of title insurance, exclusive to other types of insurance business--limitations--closing or settlement protection authorized.

MISSOURI STATUTES AND CODES

381.058. License required for insurer to transact business of title insurance, exclusive to other types of insurance business--limitations--closing or settlement protection authorized.

License required for insurer to transact business of title insurance,exclusive to other types of insurancebusiness--limitations--closing or settlement protectionauthorized.

381.058. 1. No insurer that transacts any class, type, or kind ofbusiness other than title insurance shall be eligible for the issuance orrenewal of a license to transact the business of title insurance in thisstate nor shall title insurance be transacted, underwritten, or issued byany insurer transacting or licensed to transact any other class, type, orkind of business.

2. A title insurer shall not engage in the business of guaranteeingpayment of the principal or the interest of bonds or mortgages.

3. (1) Notwithstanding subsection 1 of this section or anything elseto the contrary in sections 381.011 to 381.405, a title insurer isexpressly authorized to issue closing or settlement protection letters (andto collect a fee for such issuance) in all transactions where its titleinsurance policies are issued and where its issuing agent or agency isperforming settlement services and shall do so in favor of and upon requestby the applicable buyer, lender, or seller in such transaction. Suchclosing or settlement protection letter form shall be filed with thedirector under section 381.085 and shall conform to the terms of coverageand form of instrument as required by rule of the director and shallindemnify a buyer, lender, or seller solely against losses not to exceedthe amount of the settlement funds only because of the following acts ofthe title insurer's named issuing title agency or title agent:

(a) Acts of theft of settlement funds or fraud with regard tosettlement funds; and

(b) Failure to comply with written closing instructions by theproposed insured when agreed to by the title agency or title agent relatingto title insurance coverage.

(2) The rate for issuance of a closing or settlement protectionletter in a residential real estate transaction indemnifying a lessee orpurchaser of an interest in land, a borrower, or a lender secured by amortgage, including any other security instrument, of an interest in landshall be filed as a rate with the director.

(3) The rate for issuance of a closing or settlement protectionletter in a residential real estate transaction indemnifying a seller of aninterest in land shall be filed as a separate rate with the director.

(4) Such filed rate shall not be excessive or inadequate. The entirerate for the closing or settlement protection letter shall be retained bythe title insurer.

(5) Except as provided under this section or section 381.403, a titleinsurer shall not provide any other coverage which purports to indemnifyagainst improper acts or omissions of a person with regard to escrow,settlement, or closing services.