§ 27-2.6-12. Policyholder treatment.
(a) When a title insurance report includes an offer to issue an owner's policy covering
the resale of owner-occupied residential property, the report shall be furnished to
the purchaser-mortgagor or its representative as soon as reasonably possible prior
to closing. If the report cannot be delivered prior to the day of closing, the title
insurer or agent shall document the reasons for the delay. The report furnished to
the purchaser-mortgagor shall incorporate the following statement on the first page
in bold type:
"Please read the exemptions and the terms shown
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§ 27-2.6-12. Policyholder treatment.
(a) When a title insurance report includes an offer to issue an owner's policy covering
the resale of owner-occupied residential property, the report shall be furnished to
the purchaser-mortgagor or its representative as soon as reasonably possible prior
to closing. If the report cannot be delivered prior to the day of closing, the title
insurer or agent shall document the reasons for the delay. The report furnished to
the purchaser-mortgagor shall incorporate the following statement on the first page
in bold type:
"Please read the exemptions and the terms shown or referred to herein carefully. The
exemptions are meant to provide you with notice of matters which are not covered under
the terms of the title insurance policy and should be carefully considered.
It is important to note that this form is not a written representation as to the condition
of title and may not list all liens, defects, and encumbrances affecting title to
the land.�
(b) A title insurer issuing a lender's title insurance policy in conjunction with a mortgage
loan made simultaneously with the purchase of all or part of the real estate securing
the loan, where no owner's title insurance policy has been requested, shall give written
notice to the purchaser-mortgagor at the time the commitment is prepared. The notice
shall explain that a lender's title insurance policy is to be issued protecting the
mortgage-lender, and that the policy does not provide title insurance protection to
the purchaser-mortgagor as the owner of property being purchased. The notice shall
explain what title policy insures against and what possible exposures exist for the
purchaser-mortgagor that could be insured against through the purchase of an owner's
policy. The notice shall also explain that the purchaser-mortgagor may obtain an owner's
title insurance policy protecting the property owner at a specified cost or approximate
cost, if the proposed coverages or amount of insurance is not then known. A copy of
the notice, signed by the purchaser-mortgagor, shall be retained in the relevant underwriting
file at least five (5) years after the effective date of the policy.