Bulletin: PA000007

Dear Associates:

Recently the Title Insurance Rating Bureau of Pennsylvania submitted changes to the Rate Manual to become Effective August 1, 2005.

The impact of these changes is to specifically identify what constitutes "evidence of previous insurance" for the purpose of applying reduced title insurance rates; and secondly, a required Notice to be given to all purchasers or borrowers of title insurance.

New Section 2.9 sets forth the required Notice (substantially in the following form)

"IF THIS CONVEYANCE OR REFINANCE OCCURS WITHIN TEN YEARS OF A PREVIOUS INSURANCE OF THE SAME PROPERTY, YOU MAY BE ENTITLED TO A REDUCED RATE."

and requires that a written notice be provided to every purchaser or borrower to inform them of the availability of various reduced rates provided for in the manual such as: §5.3 the reissue rate, §5.6 the substitution rate, and §5.4 the purchase from an operative builder.

In order to facilitate your transaction and still comply with the new rule, we have revised our standard settlement affidavits (copies attached) which, when signed, will satisfy this requirement.

New Section 2.8 sets forth the evidence upon which you may rely to qualify the transaction for reduced rates:

"(a) the recording (within the period of time specified within the applicable Section of the Manual) of either:

(1) a deed to a bona fide purchaser for value, or
(2) an unsatisfied mortgage to an institutional lender; or in the alternative,

(b) any of the following documents produced by or on behalf of the purchaser of the title insurance policy:

(1) a copy of the prior policy;
(2) a copy of the marked-up commitment;
(3) a settlement sheet showing payment of a title insurance premium; or
(4) other written evidence acceptable to the Insurer that title insurance coverage was purchased for the property."

PLEASE REMEMBER THAT GIVING THE REDUCED RATES FOR QUALIFYING TRANSACTIONS IS MANDATORY.

A friendly reminder: There are no reduced rates available under the Approved Attorney system.

We have included with this Bulletin the Manual replacement pages for immediate insertion in your Rate Manual along with copies of the new Affidavits. In the near future, both the Manual and the Affidavits will be available on Virtual Underwriter. Until that time, please call with your e-mail address and I can e-mail copies directly into your computer.