SECTION 365:20-3-1. Definitions

  The following words or terms, when used in this subchapter, shall have the following meaning, unless the context clearly indicates otherwise.

"Simultaneous issue" means a loan policy, an owner's policy, or leasehold policy insuring the same real property and containing the same effective date.

"Title insurance business" or "business of title insurance" means:

(A)   issuing or offering to issue a title insurance policy;

(B)   transacting or proposing to transact any of the following activities when conducted or performed in contemplation of the issuance of a title insurance policy:

(i)   negotiating on behalf of a title insurer, the issuance of a title insurance policy;

(ii)   guaranteeing, warranting or otherwise insuring the correctness of title searches;

(iii)   executing or countersigning title insurance policies;

(iv)   abstracting, searching or examining titles, preliminary to the issuance of a commitment;

(v)   doing or proposing to do any business in substance equivalent to any of the foregoing in a manner designed to evade the provisions of this chapter.

"Title insurance policy" means any written instrument purporting to show the title to real or personal property or any interest therein or encumbrance thereon, or to furnish such information relative to real property, which written instrument in express terms purports to insure or guarantee such title or the correctness of such information. The contract shall, at a minimum, indemnify against loss or damage arising from any or all of the following, existing on or before the policy date:

(A)   defects in or liens or encumbrances on the insured title;

(B)   unmarketability of insured title; or

(C)   invalidity or unenforceability of liens or encumbrances on the stated property.

"Title insurance policy" includes a preliminary report, binder, or commitment. For purposes of this definition, a commitment or binder means any written instrument, or verbal representation which creates an obligation (whether conditional or not) to issue a title insurance policy.

"Title insurer" means any foreign or domestic stock insurer authorized by its corporate charter to engage in the business of title insurance, pursuant to 36 O.S. § 5001 et seq.

[Source: Amended at 15 Ok Reg 3228, eff 7-13-98]