SF 2325

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to title insurance; defining a term; amending
Minnesota Statutes 2004, section 68A.04.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 68A.04, is
amended to read:

68A.04 deleted text begin DEFINITION OF DIRECT RISK PREMIUMS deleted text end new text begin DEFINITIONS new text end .

new text begin Subdivision 1. new text end

new text begin Direct risk premiums. new text end

For purposes of
this chapter, "direct risk premiums" means the charge for title
insurance made by a title insurance company or its agents
according to the company's rate filing approved by the
commissioner of commerce without a deduction for commissions
paid to or retained by the agent and is that portion of the fee
charged by a title insurance company to an insured or an
applicant for insurance for the assumption by the title
insurance company of the risk created by the issuance of the
title insurance policy. Direct risk premiums of a title
insurance company do not include any other charge or fee for
abstracting, searching, or examining the title, or for escrow,
closing, or other related services.

new text begin Subd. 2. new text end

new text begin Title insurance. new text end

new text begin For purposes of this chapter,
"title insurance" means insuring or indemnifying owners of real
or personal property, the holders of liens or encumbrances on
the personal property, or others interested in the personal
property against the unmarketability of the title to the
property; the invalidity, impairment, or unenforceability of any
liens or encumbrances on the property; or the doing, or
proposing to do, any business in substance equivalent to any of
the foregoing whether or not designed to evade the provisions of
this chapter.
new text end