381.115. Licensing required for title agencies and title agents, exceptions--delegation of title searches to third party, rules--violations, penalty.

MISSOURI STATUTES AND CODES

381.115. Licensing required for title agencies and title agents, exceptions--delegation of title searches to third party, rules--violations, penalty.

Licensing required for title agencies and title agents,exceptions--delegation of title searches to third party,rules--violations, penalty.

381.115. 1. It is unlawful for any person to transact the business oftitle insurance unless authorized as a title insurer, title agency or titleagent.

2. It is unlawful for any person to transact business as:

(1) A title agency, unless the person is a licensed business entityinsurance producer under subsection 2 of section 375.015, RSMo; or

(2) A title agent, unless the person is a licensed individual insuranceproducer under subsection 1 of section 375.015, RSMo, or is exempt fromlicensure under subsection 3 of this section.

3. A salaried employee of a title insurer, title agency, or title agentis exempt from licensure as a title agent if the employee does not materiallyperform or supervise others who perform any of the following:

(1) Sell, solicit, or negotiate a title insurance policy or closingprotection letter;

(2) Calculate premiums for a title insurance policy or closingprotection letter;

(3) Determine insurability;

(4) Establish, calculate, or negotiate title charges;

(5) Conduct title search or examinations;

(6) Execute title insurance policies, commitments, binders orendorsements; or

(7) Handle escrows, settlements, or closings.

4. It is unlawful for any title insurer to contract with any person toact in the capacity of a title agency or title agent with respect to riskslocated in this state unless the person is licensed as required in thissection.

5. The director shall adopt rules, regulations, or requirements relatingto licensing and practices of persons acting in the capacity of title agenciesor agents. These persons may include title agencies, title agents andemployees of title insurers or title agencies. Such rules, regulations, orrequirements shall, until at least January 1, 2010, permit either provisionallicensure or waiver of licensure for employees newly performing functionsdescribed in subsection 3 of this section, while under the direct supervisionof a licensed insurance producer during the first six months of suchemployee's initial employment. This subsection is not intended to requirelicensure of persons performing a clerical function under the directsupervision and direction of a licensed insurance producer.

6. Every title agency licensed in this state shall:

(1) Exclude or eliminate the word insurer, insurance company, orunderwriter from its business name, unless the word agency is also included aspart of the name; and

(2) Provide, in a timely fashion, each title insurer with which itplaces business any information the title insurer requests in order to complywith reporting requirements of the director.

7. A title agency or title agent licensed in this state prior to theeffective date of this chapter shall have ninety days after the effective dateof this chapter to comply with the requirements of this section.

8. If the title insurer, title agency, or title agent delegates thetitle search to a third party, such as an abstract company, the insurer,agency, or agent must first obtain proof that the third party is operating incompliance with rules and regulations established by the director and thethird party shall provide the insurer, agency, or agent with access to and theright to copy all accounts and records maintained by the third party withrespect to business placed with the title insurer. Proof from the third partymay consist of a signed statement indicating compliance, and shall beeffective for a three-year period.

9. A violation of any provision under this section is a level threeviolation under section 374.049, RSMo.