PURPOSE: This rule implements section 381.071, RSMo (Cum. Supp. 1989) relating to the duties of a title insurance company before writing a title insurance policy.

1. (1) Examination of Title. Before a title insurance policy is written, the title insurer or its licensed agent shall cause a search of the title which is to be insured. The search of the title shall be based upon evidence prepared from a current set of records maintained in order to show all matters affecting the title to the property or interest which is to be insured for a continuous period of not less than the immediate past forty-five (45) years, except for the time table allowed by section 381.071.1(1), RSMo (Cum. Supp. 1989) for a gradual compliance. The set of records used in the search of the title shall be indexed geographically and shall encompass all properties in the county for which the set of records is maintained.

2. (2) Exceptions.

   1. (A) An attorney licensed to practice law in this state is not required to base an examination of title upon a set of records geographically indexed if s/he is personally responsible for the inspection of the best title evidence available.
   2. (B) If a set of records geographically indexed is not in existence in the county where the property subject to examination of title is located, the title insurance policy shall be based upon the best title evidence available.
   3. (C) If evidence for an examination of title cannot be obtained from a set of records geographically indexed at a reasonable charge or within a reasonable period of time, the title insurance policy shall be based upon the best title evidence available.
   4. (D) The best title evidence available is that evidence which a reasonable and prudent person would depend upon in the conduct of his/her own affairs as determined by the circumstances in existence in the county where the subject property is located.

3. (3) Documentation.

   1. (A) The individual who performed the examination of title on behalf of the title insurer shall verify in a written statement where s/he obtained the evidence used in the examination of title. If the title examiner followed any of the exceptions as stated in section (2) of this regulation, s/he shall state in the written statement, in clear and specific terms, the reasons for following any exception.
   2. (B) The written statement required by subsection (3)(A) of this regulation shall be placed in and made a part of the title insurance company’s files or that of its agent or agency for a period of not less than fifteen

4. (15) years after the title insurance policy has been issued.

   1. (C) The written statement required by subsection (3)(A) of this regulation shall follow the form as exemplified by Appendix A which follows.
   2. (D) If a title insurance company, agent or agency performs or causes to perform examinations of titles in the same manner for each and every title insurance policy issued, that company, agent or agency may file, in place of the requirements of subsections (3)(A)–(C) of this rule with the director of the Department of Insurance, an affidavit stating the place where examinations of titles are conducted and the specific reasons why any exceptions, if any, as stated in section (2) of this regulation are followed. A copy of the affidavit shall be posted in the office of the agency or agent in a conspicuous place for public view. Any deviation from an examination of title as described by the affidavit shall require compliance with subsections (3)(A)–(C) of this rule. The filing of the affidavit shall be accompanied by a fifty-dollar ($50) filing fee as mandated by section 374.230(6), RSMo (Cum. Supp. 1989) if made by an insurance company. Otherwise, no filing fee is mandated.
   3. (E) The Missouri Department of Insurance shall maintain a Missouri title plant registry. Any entities which can be defined as a title plant pursuant to section 381.031(22), Revised Statutes of Missouri shall file with the Missouri Department of Insurance a registration statement in a form as exemplified by Appendix C which follows. No filing fee is mandated.
5. (4) Discipline for Violation. The director of the Missouri Department of Insurance may institute disciplinary action for violations of this regulation in accordance with the provisions of section 375.141, RSMo (1986) and any other applicable law.

AUTHORITY: sections 374.045, 381.031(22) and 381.231, Supp. 1998 and 381.071, RSMo 1994.* This rule was previously filed as 4 CSR 190-20.060. Original rule filed Dec. 1, 1989, effective June 29, 1990. Amended: Filed April 23, 1999, effective Nov. 30, 1999. *Original authority 374.045, RSMo 1967, amended 1993, 1995; 381.031, RSMo 1987, amended 1997; 381.071, RSMo 1987, amended 1988; and 381.231, RSMo 1987, amended 1993, 1995. APPENDIX A Verification Of The Examination Of Title 1. Name and residential address of person performing examination of title— ____________________________________________________________________________________________________________________ 2. Location of property subject to examination of title— ____________________________________________________________________________________________________________________ 3. Date examination completed— ____________________________________________________________________________________________________________________ 4. Place where examination conducted— ____________________________________________________________________________________________________________________ 5. Was set of records used in examination geographically indexed? ____________ Yes ____________ No 6. If answer in question 4. was no, explain the reasons why. ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ 7. Title insurance policy number (if issued)— ____________________________________________________________________________________________________________________ The undersigned hereby verifies the information stated herein is true and correct. ____________________________________________________________________________________________________________________ _________________________________________________ Signature of Examiner _______________________________ Date APPENDIX C Annual Registration of Title Plant (One registration for each county) 1. Name of plant:______________________________________ Name of owner:____________________________________ Incorporated? _________________ Address: __________________________________________ Telephone no.: ____________________________ County of coverage: ________________________ 2. Organization of plant. a. Is the plant geographically indexed? __________________ b. Does the plant index— 1. Judgments 2. Mechanics liens 3. County taxes 4. Municipal taxes 5. Public utility easements prior to 45 years 6. Public utility assessments 7. Subdivision and condominium assessments c. How many years does your plant cover? _________ d. Does your plant duplicate the records of the Recorder of Deeds? ___________ of the Circuit Clerk? _________ 3. Is the plant open to use by licensed title insurance agents not affiliated with or employed by the plant? _____________ a. Physical access to the plant? ________ b. Access by computer modem? _______ 4. If the answer to 3 is “yes”— a. What is the charge for each use? ____________ b. How was this charge determined? ____________ 5. If the answer to 3 is “yes”— a. Is there any time delay between the request and actual admission to the plant? _________ b. Average time delay? ___________ Maximum? ___________________ Minimum? ___________________ c. Does the time delay vary according to the time of the year? __________ 6. Does the Recorder of Deeds maintain a geographical index? ____________ 7. Does the County Assessor designate each parcel by a locator or other number? _____________ 8. Do you carry errors and omissions insurance? _____________ a. Name of carrier __________________________________ b. Policy limits _____________________________________ c. Deductible ______________________________________ 9. How many licensed title insurance agents do you employ? ___________ This statement was prepared by: Name: _____________________________________ Address: ___________________________________ ___________________________ _________________________________________________ Date Signature