The Research On U.S. Title Insurance System

In today's U.S. highly developed market economy environment, the real estate and insurance markets enjoy a close relationship. Both hazard insurance and title insurance are typically required to close a real estate transaction. In a real estate transaction, quality of title is a major concern. Poor organization of public record lead U.S. title insurers to integrate title examination and settlement services. Title insurance provides protection to the owner and/or lender against defects in public records occurring before the date of the policy after a thorough title search. The title industry has played, and continues to play, a critical role in the U.S. economy by facilitating the growth of the secondary mortgage market, thus enabling Americans to have one of the highest home ownership rates in the word.Title insurance has become a universal instrument for real estate transactions in the U.S. for more than 100 years and has the increasing importantance in other countries. In general, there are many published literatures on title insurance abroad. On the contrary, Chinese scholars have no willing to study title insurance for some reasons. So, it is time for us to do something about this subject.This thesis is divided into five parts.The first part is about the historical development of U.S. title insurance system. Beginning with the reasons for the occurrence of U.S. title insurance system, we can know the differences of many title assurance measures in U.S.. Then this part includes the historical inevitability of the occurrence of U.S. title insurance system. At last, this part general analyses the historical evolution phases of U.S. title insurance system.The second part is about the general theory of U.S. title insurance system. First, this part makes true the concept of U.S. title insurance system. Title insurance is a contract of indemnity rather than a contract of guarantee as is sometimes assumed. Secondary, this part discusses the function and the effect of U.S. title insurance system. Finally, this part introduces the matters about title search, title report and title plant. The third part is about the basic elements of U.S. title insurance contract. These elements include the subject matter, the parties and relating people, the coverage, the insurance period, the premium, the indemnity and the insurance liability. This part points out that the subject matter is not the integrity of title but the veracity of title report. It is very important to understand the contract accurately that the parties of title insurance contract must understand the coverage and the insurance liability fully. In the end, this part introduces the ALTA uniform policies.The forth part is about the analysis of characteristics of U.S. title insurance system. Title insurance has unique characteristics compared with other P/C(property/casualty) insurance. These characteristics include the diversity of the function of title insurance, the retrospective defect in insurance coverage, the territorialism and oneness of the form of contract, the non-actuarial insurance rate, the one-off premium, the selectivity of the forms for bearing insurance liability, the unlimited insurance period, the distinctness of transfer of policy, the Monoline insurance, the relatively concentrated insurance market and so on.The five part is about the analysis of internationalization of U.S. title insurance system. First, this part discusses the outline of internationalization of U.S. title insurance system and points out that there is a growing demand for title insurance from the international market. Second, this part introduces the reasons about the internationalization of U.S. title insurance system. Third, this part concludes the characteristics of international title insurance. Finally, this part analysis the prospect of international title insurance system and advances the author's viewpoint by contrasting the application of U.S. title insurance system in common law countries, continental law countries and former socialist countries.Because the research on title insurance is of no boundary, the opinions of the author need to be further studied. But the author will fell satisfied if this thesis would make contribution to the theoretical study and the practical realm of the title insurance of our country.