381.071. Insurer's duties, policies--examination of title, determination of insurability--showing of liens against title--records kept, duration--exceptions to requirements. - Missouri Statutes

Insurer's duties, policies--examination of title, determination ofinsurability--showing of liens against title--records kept,duration--exceptions to requirements.

381.071. 1. No title insurance policy shall be writtenunless and until the title insurer, title agent, or agency has:

(1) Caused a search of title to be made from the evidenceprepared from a title plant of the county where the property islocated as herein defined, or if no such title plant of thecounty exists, or the owner of such plant refuses to furnish thetitle insurer, title agent, or agency desiring to insure, suchtitle evidence at a reasonable charge and within a reasonableperiod of time, then such policy of title insurance shall bebased upon the best title evidence available. An attorneylicensed to practice law in this state may upon personalinspection use the best evidence available in any county and isnot subject to the provisions of the title plant requirement ofsections 381.011 to 381.241. The records on which the titleplant is based on shall show all prior matters affecting thetitle to the property or interest therein for a continuous periodof time of at least:

(a) The past ten years, by two years after September 28,1987;

(b) The past fifteen years, by three years after September28, 1987;

(c) The past twenty years, by four years after September 28,1987; and

(d) The past twenty-seven years, by five years afterSeptember 28, 1987; and

(2) Caused to be made a determination of insurability oftitle in accordance with sound underwriting practices.

2. Except when allowed by regulations promulgated by thedirector, no title insurer, title agent, or agency shallknowingly issue any owner's title insurance policy or commitmentto insure without showing all outstanding, enforceable recordedliens or other interests against the title which is to beinsured.

3. Evidence of the examination of title and determination ofinsurability shall be preserved and retained in the files of thetitle insurer or its title agent or agency for a period of notless than fifteen years after the title insurance policy has beenissued. Instead of retaining the original evidence, the titleinsurer or title agent or agency may in the regular course ofbusiness establish a system whereby all or part of the evidenceis recorded, copied, or reproduced by any process that accuratelyand legibly reproduces or forms a durable medium for reproducingthe contents of the original.

4. This section shall not apply to:

(1) A title insurer assuming liability through a contract ofreinsurance;

(2) A title insurer acting as coinsurer if one of the othercoinsuring title insurers has complied with this section; or

(3) Policies of title insurance issued prior to theexpiration of one year after September 28, 1987.

(L. 1987 S.B. 251 § 9, A.L. 1988 S.B. 798)