query: what if attorney does not pay for title insurance

We do unfortunately have circumstances in which an attorney or title insurance agent fails in their duties and steals the premium. They ought to go behind bars for a good long time.

The way you handle this situation is to prove that you purchased the title insurance.

Let me talk about being a smart title insurance consumer. Make absolutely certain that you do these two things before you close:

• Get and review carefully the title insurance commitment.
• Review the HUD-1 Settlement Statement to be certain that it clearly shows the name of the title company issuing the insurance and that the name matches the name of the company on the title commitment. Also make certain that the HUD-1 shows that you have paid for owner coverage.

A title insurance company - the underwriter - is responsible for the acts of its agents. If you can demonstrate that you dealt with an agent who was able to produce a title insurance commitment for that underwriter and that you paid the premium, they should cover your case and issue a policy. If you have any problems, contact your state insurance department.

Good luck. I hope that helps.