1998 Minnesota Statutes

CHAPTER 68A. Title insurance companies

     68A.01 Real estate title insurance companies. 

    Subdivision 1.  Repealed, 1969 c 7 s 30 

    Subd. 2.    Guaranty fund and investment thereof.  
 Before issuing any policy or other contract of guaranty or 
 insurance, every real estate title insurance company shall set 
 apart and keep separate a guaranty fund of $100,000 or an amount 
 equal to two-fifths of its capital stock whichever is the 
 greater.  The guaranty fund shall be invested according to law.  

    Subd. 3.    Deposit of guaranty fund.  The securities 
 in which the guaranty fund is invested shall be duly deposited 
 with the commissioner in accordance with section 60A.10, 
 subdivision 4, and the commissioner's certificate thereof 
 procured, as provided by law.  This deposit shall be maintained 
 unimpaired and the principal of the fund shall be applied only 
 to the payments of losses and expenses by reason of its guaranty 
 and insurance contracts, with the right to the company to 
 collect the income thereof and to substitute other like 
 securities of equal amount and value from time to time.  In the 
 case of a foreign insurer, the deposit may be made with the 
 commissioner of the domicile state of such foreign insurer and 
 that commissioner's certificate thereof shall be accepted by the 
 commissioner.  

    Subd. 4.    Investment of other funds.  After the 
 investment of such portion of its capital stock as hereinbefore 
 provided and the deposit of the securities in its guaranty fund 
 as aforesaid the remainder of its capital stock and funds may be 
 invested in such securities, records, abstract plants, and 
 equipment as the board of directors or the board of trustees of 
 the company shall determine to be suitable for the transaction 
 of its business.  

    Subd. 5.    Other powers.  In addition to the powers 
 now possessed, these companies are authorized to make abstracts 
 of title to real property for compensation.  

    HIST: 1967 c 395 art 9 s 1; 1969 c 7 s 29; 1969 c 253 s 1,2; 
 1974 c 425 s 9; 1986 c 444; 1991 c 325 art 21 s 7 

     68A.02 Unearned premium reserve.  

    Upon issuance of each contract of title insurance issued on 
 or after January 1, 1964, by a domestic real estate title 
 insurance company, there shall be reserved initially a sum equal 
 to ten percent of the original premium charged therefor.  At the 
 end of each calendar year following the year in which the 
 contract of title insurance is issued, there shall be a 
 reduction in the sum so reserved in the amount of one-twentieth 
 of such sum.  On any contract of title insurance issued prior to 
 January 1, 1964, by a domestic real estate title insurance 
 company, a reserve shall be set up on January 1, 1964, and 
 thereafter maintained in such sum as would have been required if 
 the foregoing requirements with respect to title insurance 
 reserves had existed at and after the date of the contract of 
 title insurance.  Such sums herein required to be reserved shall 
 at all times and for all purposes be considered and constitute 
 unearned portions of the original premiums on such contracts of 
 title insurance, shall be charged as a reserve liability of the 
 real estate title insurance company in determining its financial 
 condition, and, for the purpose of applying the provisions of 
 section 60A.23, subdivision 4, shall be deemed to constitute the 
 whole amount of the premiums on the unexpired risks of such real 
 estate title insurance company.  

    HIST: 1967 c 395 art 9 s 2