Connecticut Administrative Code › Title 38a - Insurance Department › 424a - Title Insurance Coverage: Real Property Subject to Indian Land Claims › Section 38a-424a-3 - Required practices

Current through July 10, 2024
(a)
Existing
			 owner's policy-sale or mortgage.
If the real property has been
			 identified in an Indian land claim lawsuit which has been filed in court, or is
			 the subject of a notice of intent to sue, and an owner's policy has been issued
			 by the title insurer to the present owner, the title insurer, upon payment of
			 the appropriate premium, shall issue a new owner's policy to a bonafide
			 purchaser of that real property and a new loan policy to that purchaser's
			 mortgagee taking the Indian land claim exception contained in subsection (e) of
			 this section. If the amount of insurance coverage requested exceeds that under
			 the existing policy the title insurer may limit any loss or damage to the
			 insured by reason of an Indian land claim to the amount of the existing
			 policy.
(b)
Existing loan
			 policy-refinancing.
If the real property has been identified in an
			 Indian land claim lawsuit which has been filed in court, or is the subject of a
			 notice of intent to sue, and a loan policy has been issued by the title insurer
			 to the present mortgagee, the title insurer, upon payment of the appropriate
			 premium, shall issue a new loan policy to the lender taking the Indian land
			 claim exception contained in subsection (e) of this section. If the amount of
			 insurance coverage requested exceeds that under the existing policy, the title
			 insurer may limit any loss or damage to the insured by reason of an Indian land
			 claim to the original amount of the existing loan policy.
(c)
Existing loan policy-foreclosure or
			 deep-in-lieu-of-foreclosure.
If the real property has been identified in
			 an Indian land claim lawsuit which has been filed in court, or is the subject
			 of a notice of intent to sue, and a loan policy is held by the foreclosing
			 lender, the title insurer that issued such policy, upon payment of the
			 appropriate premium, shall issue an owner's policy to the mortgagee named in
			 the loan policy or to the transferee of such mortgagee when title to such real
			 property has become absolute in the mortgagee or its transferee by virtue of a
			 judgment of strict foreclosure or of a deed in lieu of foreclosure from the
			 mortgagor taking the Indian land claim exception contained in subsection (e) of
			 this section. If the amount of insurance coverage requested exceeds that under
			 the existing policy the title insurer may limit any loss or damage to the
			 insured by reason of an Indian land claim to the original amount of the
			 existing loan policy.
(d)
Waiver requirement.
As a condition to the issuance of a policy
			 pursuant to subsections (a), (b) and (c) of this section, the title insurer may
			 require the insured under the existing policy to waive or relinquish any right
			 to file a claim under the existing policy concerning any Indian land
			 claims.
(e)
No reduction in
			 new policy due to pending Indian land claim or notice of intent to sue.
A title insurer may take an exception in any policy issued pursuant to
			 subsection (a), (b) or (c) of this section for the pendency of any Indian land
			 claim lawsuit or notice of intent to sue which identifies, describes or
			 includes the property insured by such policy, provided that no such exception
			 shall operate to reduce the scope and level of coverage below that which was
			 provided in the policy being replaced.
(f)
No existing owner's or loan
			 policy-sale/refinancing
.
(1) If the
			 real property has been identified in an Indian land claim lawsuit which has
			 been filed in court, a title insurer who is not currently the insurer of the
			 property shall issue a policy to a bona fide purchaser or bona fide mortgagee
			 upon payment of the premium, provided that said policy may make exception for
			 any Indian land claim.
(2) If real
			 property is not subject to an Indian land claim lawsuit which has been filed in
			 court but is located in an area subject to a notice of intent to sue, a title
			 insurer who is not currently the insurer of the property shall issue a title
			 insurance policy to a bona fide purchaser or bona fide mortgagee which may make
			 exception for any Indian land claim but shall provide affirmative coverage
			 against actual loss or damage resulting from a final judgment rendered against
			 the insured in any Indian land claim action. The title insurer shall also
			 defend the insured in any Indian land claim lawsuit commenced after the
			 issuance of the policy and shall pay all costs of such defense including court
			 costs, attorney's fees and expenses, all to the extent provided in the
			 conditions and stipulations of the policy.
(3) Coverage for Indian land claims under
			 this section for non-residential real property may be limited to $500,000 if
			 reinsurance coverage is unobtainable from the title insurer's existing
			 reinsurer in the normal course of business.