Title Insurance: Monoline Restrictions

One of the more bizarre aspects of the title insurance industry is the so-called monoline restriction.  Essentially, what this means is that an insurer which sells title policies must only sell title policies; a company is ineligible by law to sell title insurance if it sells any other type of insurance.  These laws are not uniform throughout the country and can vary by state, but in practice, just about all states have a law which is more or less identical to what I’ve described (Iowa being one notable exception, about which I’ll probably have to write a separate post later). You may wonder, as I certainly did when I first learned of it, how on earth these laws came to be?  It’s a little complicated…

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