In Texas, the business of title insurance is governed by the Texas Insurance Code and regulated by the Texas Department of Insurance (“The Regulations”). The Department has promulgated The Basic Manual of Rules Rates and Forms For The Writing of Title Insurance in The State of Texas (the “Basic Manual”) which contains:
•all insuring forms and endorsements;
•rate rules for insurance coverages;
•procedural rules for insurance coverages;
•administrative rules for dealing with the Texas Department of Insurance;
•non-policy coverage forms required to be used;
•claims procedures; and
•Texas Department of Insurance bulletins
The Basic Manual sets the available insurance coverages and rates for Texas real estate transactions which must be insured in accordance with the Texas Title Insurance Act.
The Texas Title Insurance Act provides that no policy of title insurance, reinsurance of any assumed risk under any policy of title insurance, or any guaranty of any character on Texas titles shall be issued or valid unless written by a corporation complying with the provisions of, and authorized or qualified under the Act.