Montana Code 33-25-211. Guaranty fund — investments
33-25-211. Guaranty fund — investments. (1) A title insurer shall establish and maintain the guaranty fund required under 33-2-517 and may invest in necessary plant and equipment and in other investments as authorized under this section.
Terms Used In Montana Code 33-25-211
- Abstract: means a written representation, provided pursuant to a contract and expected to be relied upon by the person who has contracted for the receipt of that representation, listing all recorded conveyances, instruments, or documents which, under the laws of this state, impart constructive notice regarding the chain of title to real property described in the abstract. See Montana Code 33-25-105
- Title insurer: means an insurer formed and authorized under the laws of this state to transact the business of title insurance in this state or a foreign or alien insurer so authorized. See Montana Code 33-25-105
- Title plant: means a set of privately maintained records in which entries have been made of documents imparting constructive notice, under the law, of matters affecting title to real property, an interest therein, or an encumbrance thereon, that have been filed or recorded in the jurisdiction for which the title plant is maintained and from which the ownership of real property within the jurisdiction can be ascertained and liens, encumbrances, defects, and clouds on title to the real property can be determined. See Montana Code 33-25-105
(2)In addition to other investments eligible under this part, a title insurer may invest and have invested an amount not exceeding 50% of its paid-in capital stock in its title plant, in equipment, and with the commissioner’s consent, in stock of abstract companies and of title insurance producers.
(3)Investments authorized by this section may not be credited against the insurer’s required guaranty fund or unearned premium reserve provided for under 33-2-517.
(4)A title plant and equipment may not be allowed as an asset in any determination of the insurer’s financial condition at a value greater than actual cost.