Bulletin No. 2000-4


TO:                  All Companies Underwriting Title Insurance

FROM:            Kathleen Sebelius, Commissioner of Insurance

RE:                   Rescission of Bulletin 1994-6

DATE:             September 18, 2000

Bulletin 1994-6 is rescinded.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:

  1. ;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.

  2. 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.

  3. 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.