PURPOSE: This regulation prescribes procedures to be followed by title insurers when filing forms and rate schedules with the director of insurance.

1. (1) Definitions. As used in this regulation, the following terms shall mean:

   1. (A) Charge means any fee charged to the insured, or paid for the benefit of the insured, for the performance of title-related services other than the risk rate charged for title insurance. This charge shall include, but not be limited to, fees for abstracts, title search and examination, handling of escrows, settlements or closings;
   2. (B) Director means the director of the Department of Insurance or his/her appointee;
   3. (C) Department means the Department of Insurance, staff and employees; and
   4. (D) Risk rate means the total consideration paid by or on behalf of the insured for a title insurance policy. Risk rate shall include the title insurance agent’s commission but shall not include any charge as defined in subsection (1)(A).

2. (2) Filing of Title Insurance Rates.

   1. (A) Every title insurer licensed in Missouri shall file with the director a completed title insurance rate reporting form for the risk rates it proposes to use in each county of this state and each city not within a county in this state. The effective date for these rates shall be no earlier than the thirtieth day following the receipt of the form by the director.
   2. (B) Appendix A sets forth a risk rate reporting format to be utilized by title insurers in this state for the respective types of title insurance contracts. When computing insurance premiums on a fractional thousand of insurance (except as to minimum premiums), multiply those fractional thousands by the rate per thousand applicable, considering any fraction of one hundred dollars ($100) as a full one hundred dollars ($100)

3. (3) Filing of Title Insurance Forms.

   1. (A) No title insurer licensed in Missouri shall issue or agree to issue any form of title insurance binder, title insurance commitment, preliminary report, title insurance policy, title insurance standard form endorsement, other contract of title insurance or any 20 CSR 500-7

related form unless these have been filed with the director of the Department of Insurance. The filing shall be received by the director of the Department of Insurance not less than thirty (30) days before the use of the form.

1. (B) No policy, standard form endorsement or simultaneous instrument which provides title insurance coverage shall be issued unless it contains the following:

   1. 1. Total amount to be paid for the

issuance of the policy; and

1. 2. Risk rate for the policy.

AUTHORITY: sections 374.045, RSMo 1986 and 381.181, 381.211 and 381.231, RSMo Supp. 1989. This rule was previously filed as 4 CSR 190-20.011. Original rule filed Jan. 14, 1982, effective June 1, 1982. Amended Filed Sept. 6, 1988, effective Jan. 16, 1989. Emergency rescission filed July 28, 1989, effective Aug. 7, 1989, expired Dec. 4, 1989. “Original Title Insurance for Owners and Leasehold Owners Policies’’ means any owner’s policy insuring fee simple estate for the full value of the premises, or any owner’s policy insuring a leasehold estate for the present market value of such leasehold estate. 2“Reissue Title Insurance for Owners and Leasehold Owners Policies’’ means a title insurance policy issued to a purchaser or lessee of real estate from a person whose title as owner has previously been insured by any company prior to the application for a new policy. 3“Title Insurance for Conversion of Contract Purchaser’s and Leasehold Policies’’ means a title insurance policy issued to a contract purchaser who has previously obtained a policy from an insurer insuring his/her contract, who subsequently obtains a deed given in pursuance of the contract and makes an application for an owner’s policy from the same insurer and surrenders the previous policy; or a title insurance policy issued to a lessee who has previously obtained a leasehold policy of an insurer insuring his/her lease and subsequently purchases the property, makes application for an owner’s policy from the same insurer and surrenders the previous policy. 4“Original Title Insurance for Loan Policies’’ means a mortgage title insurance policy issued for an amount equal to or higher than the principal amount of the mortgage debt. 5“Reissue Title Insurance for Loan Policies’’ means a mortgage title insurance policy issued for an owner of property who has had the title to such property previously insured as owner by any title insurer. 6“Title Insurance for Owners or Leasehold Owners Policies upon Acquisition in Satisfaction of Debt’’ means a title insurance policy issued to an insured under a mortgage title policy who acquires title by foreclosure or by voluntary conveyance in extinguishment of debt. 7“Title Insurance for Substitution’’ means a title insurance policy issued to a borrower who obtains a substitution loan on the same property by the same lender. 8“Simultaneous Issue Policies’’ means an owner’s and a mortgagee’s policy(ies) covering identical land which are issued simultaneously. 9“Title Insurance for Builder/Developer (Subdepartment Rates)’’ means a title insurance policy covering premises owned by one owner which have been platted into multiple lots; a title insurance policy issued to an owner of multiple lots within a platted subdepartment; or a title insurance policy issued to an owner who proposes to sell vacant lots to individual purchasers and furnish an owner’s title insurance policy to each purchaser, as evidence of title, in lieu of furnishing an abstract of title. *The description of risk amounts shown is provided as a suggestion; other amount classifications will be considered by the department.