381.065. Net retained liability limits, maximum amount--reinsurance allowed--waiver by director of risk, when.

MISSOURI STATUTES AND CODES

381.065. Net retained liability limits, maximum amount--reinsurance allowed--waiver by director of risk, when.

Net retained liability limits, maximum amount--reinsuranceallowed--waiver by director of risk, when.

381.065. 1. The net retained liability of a title insurer for asingle risk in regard to real property located in this state, or in regardto a title insurance policy issued in this state and insuring personalproperty, whether assumed directly or as reinsurance, shall not exceed theaggregate of fifty percent of surplus as regards policyholders plus thestatutory premium reserve less the company's investment in title plants,all as shown in the most recent annual statement of the insurer on filewith the director.

2. For purposes of this chapter:

(1) A single risk shall be the insured amount of any title insurancepolicy, except that, where two or more title insurance policies are issuedsimultaneously covering different estates in the same property, a singlerisk shall be the sum of the insured amounts of all the title insurancepolicies; and

(2) A policy under which a claim payment reduces the amount ofinsurance under one or more other title insurance policies shall beincluded in computing the single risk sum only to the extent that itsamount exceeds the aggregate amount of the policy or policies whose amountof insurance is reduced.

3. A title insurer may obtain reinsurance for all or any part of itsliability under its title insurance policies or reinsurance agreements andmay also reinsure title insurance policies issued by other title insurerson single risks located in this state or elsewhere. Reinsurance onpolicies issued on real property located in this state, or on policiesissued in this state and insuring personal property, may be obtained fromany title insurers licensed to transact title insurance business in thisstate, any other state, or the District of Columbia and which have acombined capital and surplus of at least one million six hundred thousanddollars.

4. The director may waive the limitation of this section for aparticular risk upon application of the title insurer and for good causeshown.