40-1136. Same; definitions.

40-1136

Chapter 40.--INSURANCE
Article 11.--GENERAL PROVISIONS RELATIVE TO CASUALTY, SURETY AND FIDELITY COMPANIES

      40-1136.   Same; definitions.As used in this act, unless the context otherwise requires:

      (a)   "Commissioner" means the commissioner of insurance of the state ofKansas.

      (b)   "Escrow" means written instruments, money or other items deposited byone party with a depository, escrow agent or escrow for delivery to anotherparty upon the performance of a specified condition or the happening of acertain event.

      (c)   "Person" means a natural person, partnership, association, cooperative,corporation, trust or other legal entity.

      (d)   "Qualified financial institution" means an institution that is:

      (1)   Organized or (in the case of a U.S. branch or agency office of a foreignbanking organization) licensed under the laws of the United States or any stateand has been granted authority to operate with fiduciary powers;

      (2)   regulated, supervised and examined by federal or state authoritieshaving regulatory authority over banks and trust companies;

      (3)   insured by the appropriate federal entity; and

      (4)   qualified under any additional rules established by the commissioner.

      (e)   "Title insurance agent" or "agent" means an authorized person,other than a bona fide employee of the title insurer who, on behalf of thetitle insurer, performs the following acts, in conjunction with the issuance ofa title insurance report or policy:

      (1)   Determines insurability and issues title insurance reports or policies,or both, based upon the performance or review of a search, or an abstract oftitle;

      (2)   collects or disburses premiums, escrow or security deposits or otherfunds;

      (3)   handles escrow, settlements or closings;

      (4)   solicits or negotiates title insurance business; or

      (5)   records closing documents.

      (f)   "Title insurer" or "insurer" means a company organized under laws ofthis state for the purpose of transacting the business of title insurance andany foreign or non-U.S. title insurer licensed in this state to transact thebusiness of title insurance.

      (g)   "Title insurance policy" or "policy" means a contract insuring orindemnifying owners of, or other persons lawfully interested in, real orpersonal property or any interest in real property, against loss or damagearising from any or all of the following conditions existing on or before thepolicy date and not excepted or excluded:

      (1)   Defects in or liens or encumbrances on the insured title;

      (2)   unmarketability of the insured title;

      (3)   invalidity, lack of priority, or unenforceability of liens orencumbrances on the stated property;

      (4)   lack of legal right of access to the land; or

      (5)   unenforceability of rights in title to the land.

      History:   L. 1999, ch. 95, § 9; July 1.