Montana Code 33-25-214. Underwriting standards — record retention
33-25-214. Underwriting standards — record retention. (1) A title insurer may not issue a title insurance policy unless it, its title insurance producer, or an approved attorney has conducted a reasonable search and examination of the title and made a determination of insurability of title in accordance with sound underwriting practices. The title insurer or title insurance producer shall preserve and retain in its files evidence of the examination of title and determination of insurability. The title insurer or title insurance producer may keep original evidence or may establish in the regular course of business a system of recording, copying, or reproducing evidence by any process that accurately and legibly reproduces, or forms a durable medium for reproducing, the contents of the original.
Terms Used In Montana Code 33-25-214
- Approved attorney: means an attorney authorized to practice law in this state, except an agent or employee of a title insurer, whose certification as to the status of the title to real property a title insurer is willing to accept as the basis for issuance of a title insurance policy. See Montana Code 33-25-105
- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Knowingly: means only a knowledge that the facts exist which bring the act or omission within the provisions of this code. See Montana Code 1-1-204
- Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
- producer: means a person, corporation, partnership, or other business entity, including an officer, director, or owner of 5% or more of the equity or capital thereof, engaged in this state in the trade, business, occupation, or profession of:
(a)buying or selling interests in real property;
(b)making loans secured by interests in real property; or
(c)acting as broker, insurance producer, or representative of a person described in subsection (8)(a) or (8)(b). See Montana Code 33-25-105
- Property: means real and personal property. See Montana Code 1-1-205
- Title insurance policy: means a contract by which, subject to its stated terms and conditions, a title insurer insures or indemnifies the insured against loss or damage sustained by reason of:
(a)defects in or liens or encumbrances on the title to the stated property;
(b)unmarketability of the title to the stated property; or
(c)invalidity or unenforceability of liens or encumbrances on the stated property. See Montana Code 33-25-105
- Title insurance producer: means a person who holds a valid title insurance producer's license and is authorized in writing by a title insurer to:
(i)solicit title insurance business;
(ii)collect rates;
(iii)determine insurability in accordance with underwriting rules and standards of the insurer; or
(iv)issue policies of the title insurer. See Montana Code 33-25-105
- Title insurer: means an insurer formed and authorized under the laws of this state to transact the business of title insurance in this state or a foreign or alien insurer so authorized. See Montana Code 33-25-105
(2)Subsection (1) does not apply to:
(a)a title insurer assuming liability through a contract of reinsurance; or
(b)a title insurer acting as coinsurer if one of the other coinsuring title insurers has complied with subsection (1).
(3)Except as allowed by rules adopted by the commissioner, a title insurer or title insurance producer may not knowingly issue any title insurance product or commitment to insure unless all outstanding enforceable recorded liens or other interests against the property title to be insured are shown.
(4)An insurer issuing a policy in violation of this section is estopped, as a matter of law, to deny the validity of the policy as to any claim or demand of the insured arising under the policy.