Mo. Code Regs. tit. 20 § 500-7.020

Current through Register Vol. 49, No. 17, September 3, 2024

Section 20 CSR 500-7.020 - Scope and Definitions

PURPOSE: This rule sets out the scope of the rules in this chapter and provides definitions to aid in the interpretation of the rules in this chapter.

(1) Applicability of Rules. The rules in this chapter apply to title insurers, title agencies and title agents transacting the business of insurance in this state under Chapter 381, RSMo. The rules shall be read together with Chapter 536, RSMo.

(2) Definitions. As used in this chapter, the following terms shall mean:

(A) "Closing protection letter," a letter issued on behalf of a title insurer, which indemnifies a buyer, lender, or seller solely against losses not to exceed the amount of settlement funds because of the acts set forth in section 381.058, RSMo;

(B) "Closing protection fee," the consideration paid by or on behalf of the buyer, borrower, lender, or seller for a closing protection letter calculated from the rate filed with the director;

(C) "Director," the director of the department;

(D) "Department," the Department of Insurance, Financial Institutions and Professional Registration;

(E) "Material transaction," a single transaction with a monetary value of one hundred dollars ($100) or more, or the aggregate of any series of transactions with a monetary value of six hundred dollars ($600) or more, during the reporting period and which are between the agency and a party with a financial interest in the agency or in which the agency holds a financial interest. Material transactions shall not include:

1. Employee salaries or bonuses; or

2. Profit distributions in proportion to financial interests; or

3. Any payment reflected on a settlement statement or pursuant to an escrow agreement; or

4. Any payment to a realtor for commission;

(F) "Residential real estate transaction," the sale, purchase, financing, or refinancing of a house or other dwelling designed principally for the occupancy of from one to four (1-4) families, but does not include transactions involving real estate designed for business, commercial, or agricultural purposes;

(G) "Title insurance premium," the premium in a title insurance transaction;

(H) "Title service charge," any charge as defined in 20 CSR 500-7.100, except for any closing protection fee or any fee for the handling of escrows, settlements, or closing;

(I) "Premium," as defined in section 381.031.14, RSMo 1994, and reviewed under section 381.171, RSMo 1994; and

(J) "Price estimate," a good faith estimate or prediction of prices based upon information presented at the time of the estimate.

20 CSR 500-7.020

AUTHORITY: section 374.045, RSMo 2000 and section 381.042, RSMo Supp. 2007.* Emergency rule filed Jan. 16, 2008, effective Jan. 28, 2008, expired July 14, 2008. Original rule filed Jan. 16, 2008, effective Sept. 30, 2008.

*Original authority: 374.045, RSMo 1967, amended 1993, 1995 and 381.042, RSMo 2000, amended 2007.