Bulletin No. 2000-4
TO: All Companies
Underwriting Title Insurance
FROM: Kathleen Sebelius,
Commissioner of Insurance
of Bulletin 1994-6
DATE: September 18, 2000
is rescinded. Companies may now, at their option, cover limited surface damage
on title insurance policies, provided that such policies or endorsements are
first approved by this Department. A summary of changes is shown below:
- ;Providing survey coverage
without requiring actual survey This called for KID to take appropriate
regulatory action if sound underwriting practices are not being followed regarding
the issuance of survey coverage. It remains the responsibility of each carrier
to determine what constitutes sound underwriting practices regarding the issuance
of survey coverage, as required by K.S.A. 40-235(b). Restating that Statutory
requirement by Bulletin is redundant.
- Prospective ownership commitments,
binders, reports, etc., being furnished to realtors, lenders, etc. as a marketing
tool to generate business at no chargeThis restatement of K.S.A. 40-2404(14)(A)
and K.A.R. 40-3-42 is redundant.
- Surface Damage Coverage
This section prohibited coverage of surface by title insurance policies after
July 1, 1994. This restriction is now removed. Standard American Land Title
Association (ALTA) title insurance policies provide coverage for minor surface
damage (trees, shrubs, etc.) due to a defect in the title prior to the date
of policy issuance but not discovered until after the date of policy issuance.
Carriers may now, at their option, provide limited surface damage coverage.
Policy forms providing such coverage must be filed for approval prior to use.