Title 38a, Title 38a: Insurance

Sec. 38a-404. Limitations on powers. No person subject to sections 38a-400 to 38a-425, inclusive, shall engage in activities prohibited to corporations under section 38a-45, except that such persons may guarantee the obligations of their agents in the normal course of business by…

Sec. 38a-405. Capital and surplus requirements. A title insurer shall have such minimum capital and surplus as is required by section 38a-72. (P.A. 90-218, S. 6.)

Sec. 38a-406. Single risk limitation. (a) The net retained liability of a title insurer for a single risk on property located in this state, whether assumed directly or as reinsurance, may not exceed fifty per cent of the sum of its total surplus to policyholders and reserve, les…

Sec. 38a-407. Underwriting standards and record retention. No title insurance policy may be written unless and until the title insurer or its title agent has caused to be conducted a reasonable search and examination of the title and has caused to be made a determination of insur…

Sec. 38a-408. Unearned premium reserve. (a) A domestic title insurer shall establish and maintain a reserve, computed in accordance with this section, and all sums attributed to such reserve shall at all times and for all purposes be considered and constitute unearned portions of…

Sec. 38a-409. Use of reserve on liquidation, dissolution or insolvency. (a) If a domestic title insurer becomes insolvent, is in the process of liquidation or dissolution or is in the possession of the commissioner: (1) Such amount of the assets of such title insurance company eq…

Sec. 38a-410. Loss and loss expense reserve. (a) All title insurers licensed in this state shall establish and maintain reserves against unpaid losses and loss expenses. (b) Upon receiving written notice from or on behalf of the insured of a title defect in or lien or adverse cla…

Sec. 38a-411. Reinsurance. (a) A title insurer may obtain reinsurance for all or any part of its liability under one or more of its title insurance policies or reinsurance agreements and may also reinsure title insurance policies issued by other title insurers on risks located in…

Sec. 38a-412. Investments. (a) A domestic title insurer may invest in title plants. For determination of the financial condition of such a title insurer, title plants will be treated as an asset valued at actual cost to the title insurer, not to exceed fifty per cent of the surpl…

Sec. 38a-413. Title agent licensing, exemptions. Title insurers and title insurance agents shall not be subject to the provisions of sections 38a-704 and 38a-769. (P.A. 90-218, S. 14; P.A. 96-193, S. 35, 36.) History: P.A. 96-193 replaced the existing language with a provision ex…

Sec. 38a-414. Prohibition on rebates and inducements. (a) No title insurer or title agent shall (1) pay, directly or indirectly, to the insured, to any producer of title insurance business, to any associate of a producer or to any other person other than another title agent, any …

Sec. 38a-415. Division of premiums and charges. (a) Nothing in sections 38a-400 to 38a-425, inclusive, shall be construed as prohibiting the division of premiums and charges between or among a title insurer and its title agent, two or more title insurers and their title agents, t…

Sec. 38a-416. Disclosure of financial interest. (a) No title insurer or title insurance agent may accept any order for, issue a title insurance policy to, or provide services to, an applicant if such insurer or agent knows or has reason to believe that the applicant was referred …

Sec. 38a-417. Favored title agent or insurer. The provisions of section 38a-816 shall govern relationships which favored agents or insurers. (P.A. 90-218, S. 18; P.A. 04-10, S. 7.) History: P.A. 04-10 made a technical change.

Sec. 38a-418. Premium rate standards. (a) Premium rates shall not be inadequate, excessive, or unfairly discriminatory. (b) Rates are excessive if in the aggregate they are likely to produce a long run profit that is unreasonably high in relation to the risk of the class of busin…

Sec. 38a-419. Premium rate schedules. (a) A title insurer shall file with the commissioner premium rate schedules it proposes to use in this state. If the commissioner finds in his review of a filing that it does not violate section 38a-418, he shall approve the schedule within t…

Sec. 38a-420. Publication of schedules of premiums and charges. (a) Each title insurer and title agent shall print and make available to the public schedules of its currently effective premiums and charges. (b) The schedules shall (1) be dated to show the date the premiums and ch…

Sec. 38a-421. Form filing. (a) A title insurer shall file with the commissioner all forms it proposes to use in this state, including (1) title insurance policies, including standard form endorsements and (2) commitments, binders or any other reports issued prior to the issuance …

Sec. 38a-422. Form standards. The commissioner shall approve any form filed under section 38a-421 only if the form (1) is logically and clearly arranged and is understandable to a person of normal intelligence without special insurance or legal knowledge or training, (2) does not…

Sec. 38a-423. Notice of issuance of mortgage policy. (a) A title insurer or title agent that issues a mortgagee's policy of title insurance on a loan made simultaneous with the purchase of all or part of the residential property securing the loan, where no owner's policy has been…

Sec. 38a-424. Regulations. In addition to any other powers granted under sections 38a-400 to 38a-425, inclusive, the commissioner may adopt regulations in accordance with chapter 54 to protect the interests of the public, including, but not limited to, regulations governing sales…

Sec. 38a-424a. Regulations re availability of coverage for property that is the subject of an Indian land claim. (a) As used in this section, “Indian land claim” means a claim for real property or monetary damages based on an alleged illegal transfer, use or occupation of such re…

Sec. 38a-425. Severability. The provisions of sections 38a-400 to 38a-425, inclusive, shall be severable, and, if any of their provisions are held to be unconstitutional or invalid, the validity of the remaining provisions of said sections will not be affected. It is hereby decla…