Title Insurance Policies in Missouri

• Mandatory arbitration is prohibited in Missouri. The filed Arbitration Endorsement should be included with each policy.

Section 381.038.3 of the Missouri Revised Statutes

(http://www.moga.mo.gov/statutes/C300-399/3810000038.HTM) requires that a title agency or title agent promptly issue each title insurance policy within forty-five days after compliance with the requirements of the commitment for insurance.

Section 20CSR 500-7.090 of the Missouri Code of State Regulations

(http://sos.mo.gov/adrules/csr/current/20csr/20c500-7.pdf) sets forth special circumstances that may allow issuance of the policy beyond 45 days. In essence those circumstances are that the deed and/or security instrument creating the insured interest has been filed with but not yet recorded by the respective recorder of deeds or that the fee(s) for the policy, commitment and/or recording fees have not been tendered to the agent. The burden of proof as to these special circumstances is on the title agent or agency. The Department considers the failure to promptly issue each title insurance policy within forty-five days to be a knowing commission in conscious disregard of the statute, and the agent or agency will be subject to enhanced penalties pursuant to Section 374.049.7 of the Missouri Revised Statutes (http://www.moga.mo.gov/statutes/C300-399/3740000049.HTM) . The increase in such penalties may result in the levy of a penalty by the Department of $1,000 per infraction up to $50,000 per annum for the first such offense.

As part of the Annual On-Site review pursuant to Section 20 CSR 500-7.080, all underwriters are required to report to the Department on an annual basis the average time for policy issuance so that the Department can monitor compliance.