(a) A title insurer or title agent that issues a mortgagee‘s policy of title insurance on a loan made simultaneous with the purchase of all or part of the residential property securing the loan, where no owner’s policy has been ordered, shall inform the borrower in writing that the mortgagee’s policy does not protect the borrower, and that the borrower may obtain an owner’s title insurance policy for his protection. Such notice shall be provided before disbursement of the loan proceeds and before issuance of a mortgagee’s policy and shall be on a form prescribed by the commissioner.

Terms Used In Connecticut General Statutes 38a-423

  • Commissioner: means the Insurance Commissioner. See Connecticut General Statutes 38a-1
  • Insurance: means any agreement to pay a sum of money, provide services or any other thing of value on the happening of a particular event or contingency or to provide indemnity for loss in respect to a specified subject by specified perils in return for a consideration. See Connecticut General Statutes 38a-1
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Policy: means any document, including attached endorsements and riders, purporting to be an enforceable contract, which memorializes in writing some or all of the terms of an insurance contract. See Connecticut General Statutes 38a-1

(b) If the borrower elects not to purchase an owner’s title insurance policy, the title insurer or title agent shall obtain from the borrower a statement in writing that the notice has been received and that the borrower waives the right to purchase an owner’s title insurance policy. If the borrower refuses to provide the statement and waiver, the title insurer or title agent shall so note in the file. The statement and waiver shall be on a form prescribed by the commissioner and shall be retained by the title insurer or title agent for at least five years after receipt.