20 CSR 500-7.100 - Rate Schedules
(1)
Definitions. As used in this regulation, the following terms shall mean:
(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 and handling of escrows, settlements, or closings;
and
(B) 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) Filing of Rates.
(A) Title Insurance Rates. Every title
insurer licensed in Missouri shall file with the director as required by
section 381.181, RSMo 1994, 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. Rate
schedules filed under this rule must comply with section
381.171, RSMo 1994. The
effective date for these rates shall be no earlier than the thirtieth day
following the receipt of the form by the director.
(B) Filing Form. The Uniform Premium (Risk
Rate) Report form (Form T-7) 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). The form can be
accessed at the department's website at
www.insurance.mo.gov or at the
department offices.
(C) Closing
Protection Rates. Every title insurer shall file with the director rates for
closing protection letters applicable to residential real estate transactions.
Rates for closing protection letters in residential real estate transactions
shall meet the following standards:
1. Rates
shall not be excessive or inadequate;
2. Rates are excessive if, in the aggregate,
they are likely to produce a long run profit that is unreasonably high in
relation to the risk of the business or if expenses are unreasonably high in
relation to the services rendered;
3. Rates are inadequate if they are clearly
insufficient, together with investment income attributable to them, to sustain
projected losses and expenses or if continued use of such rates will have the
effect of substantially lessening competition or the effect of tending to
create a monopoly;
4. Rate filing
standards apply separately to closing protection letters issued under section
381.058.3(2)-(3), RSMo;
5. The rate
filing shall document the anticipated losses, expenses, and profits underlying
the rates and provide appropriate actuarial support for the data, methods, and
assumptions;
6. Expected losses for
rates do not include losses that result in a title insurance claim;
and
7. Rates shall reflect expected
fiduciary practices under current law and losses incurred in another state or
under prior fiduciary practices may only be used if adjusted to reflect
prospective Missouri fiduciary practices.
Notes
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