THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: TX2013002
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Bulletin: TX2013002
Note: This Bulletin has been replaced by TX2019006 - RATES AND/OR FORMS UPDATE - Rate Hearing Results Effective September 1, 2019. Use it for reference only.
Dear Associates:
As you should know by now, the Texas Insurance Commissioner has increased Texas title insurance premiums by 3.8% effective May 1, 2013.
As with any change in the rates, the same questions always arise:
Q. Does the increase affect endorsements?
A. No. The rate increase applies only to the premium charged for polices, loan and owner’s policies.
Q. If we have already issued (or issue during April, 2013) what premium do we show on our commitment?
A. The effective date (policy date) controls the premium. If you anticipate policy being dated May 1, 2013 or later, you should show the premium at the new amounts. If you are not sure of the closing date, you should show both with one having a closing date of before May 1 and the other showing the closing date of on or after May 1, 2013.
Q. Can we close on April 29 and hold the policy until May 2 and charge the higher rate?
A. No. If the transaction is fully closed and funded the closing is April 29 and the policy should be dated that date.
Q. Will rate cards be available before May 1, 2013?
A. Rate cards will be available through Stewart forms or Stewart marketing.
Q. If I charge too much or too little, what should I do?
A. Rate Rule R-2 establishes the appropriate rate. If you charge too much, you should refund the overcharge promptly. If you charge too little, you must make every reasonable effort to bill and obtain payment. Remember that consistently undercharging could be considered a violation of P-53.
Q. Do you have examples of the new rates and how to compute rates over $100,000?
A. Yes. The commissioner’s order furnished both the basic rate charge and the methodology to compute rates for policies above $100,000. A copy of that information is set out on the attached Schedule.
If you would like to request the rate cards now, please send an e-mail to stgforms@stewart.com or go to www.stewartmarketing.com to place the order and we will ship upon receipt from the printers.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
2385
Commissioner’s Order
2012 Texas Title Insurance Rate Hearing
Docket No. 2749 Page 11 of 13
EXHIBIT A
TEXAS TITLE INSURANCE BASIC PREMIUM RATES
Rates Effective May 1, 2013
|
Policies Up To And Including |
Basic Premium |
Policies Up To And Including |
Basic Premium |
Policies Up To And Including |
Basic Premium |
Policies Up To And Including |
Basic Premium |
|
$10,000 |
$238 |
$32,500 |
$398 |
$55,000 |
$556 |
$77,500 |
$716 |
|
10,500 |
$242 |
33,000 |
$401 |
55,500 |
$559 |
78,000 |
$720 |
|
11,000 |
$244 |
33,500 |
$405 |
56,000 |
$565 |
78,500 |
$725 |
|
11,500 |
$248 |
34,000 |
$408 |
56,500 |
$568 |
79,000 |
$729 |
|
12,000 |
$252 |
34,500 |
$412 |
57,000 |
$571 |
79,500 |
$730 |
|
12,500 |
$255 |
35,000 |
$415 |
57,500 |
$575 |
80,000 |
$734 |
|
13,000 |
$260 |
35,500 |
$419 |
58,000 |
$579 |
80,500 |
$738 |
|
13,500 |
$264 |
36,000 |
$422 |
58,500 |
$581 |
81,000 |
$742 |
|
14,000 |
$267 |
36,500 |
$426 |
59,000 |
$585 |
81,500 |
$744 |
|
14,500 |
$270 |
37,000 |
$429 |
59,500 |
$589 |
82,000 |
$748 |
|
15,000 |
$272 |
37,500 |
$433 |
60,000 |
$593 |
82,500 |
$753 |
|
15,500 |
$276 |
38,000 |
$437 |
60,500 |
$597 |
83,000 |
$757 |
|
16,000 |
$280 |
38,500 |
$441 |
61,000 |
$600 |
83,500 |
$759 |
|
16,500 |
$284 |
39,000 |
$443 |
61,500 |
$603 |
84,000 |
$762 |
|
17,000 |
$288 |
39,500 |
$447 |
62,000 |
$607 |
84,500 |
$767 |
|
17,500 |
$292 |
40,000 |
$450 |
62,500 |
$611 |
85,000 |
$770 |
|
18,ooo |
$296 |
40,500 |
$455 |
63,000 |
$613 |
85,500 |
$773 |
|
18,500 |
$298 |
41,000 |
$457 |
63,500 |
$617 |
86,ooo |
$776 |
|
19,000 |
$301 |
41,500 |
$462 |
64,000 |
$621 |
86,500 |
$781 |
|
19,500 |
$304 |
42,000 |
$465 |
64,500 |
$625 |
87,000 |
$785 |
|
20,000 |
$309 |
42,500 |
$469 |
65,000 |
$628 |
87,500 |
$788 |
|
20,500 |
$312 |
43,000 |
$471 |
65,500 |
$631 |
88,000 |
$791 |
|
21,000 |
$317 |
43,500 |
$475 |
66,000 |
$635 |
88,500 |
$795 |
|
21,500 |
$320 |
44,000 |
$479 |
66,500 |
$640 |
89,000 |
$799 |
|
22,000 |
$324 |
44,500 |
$483 |
67,000 |
$644 |
89,500 |
$801 |
|
22,500 |
$327 |
45,000 |
$487 |
67,500 |
$645 |
90,000 |
$804 |
|
23,000 |
$330 |
45,500 |
$490 |
68,000 |
$649 |
90,500 |
$809 |
|
23,500 |
$333 |
46,000 |
$493 |
68,500 |
$653 |
91,000 |
$813 |
|
24,000 |
$337 |
46,500 |
$497 |
69,000 |
$656 |
91,500 |
$817 |
|
24,500 |
$340 |
47,000 |
$499 |
69,500 |
$659 |
92,000 |
$819 |
|
25,000 |
$345 |
47,500 |
$503 |
70,000 |
$664 |
92,500 |
$823 |
|
25,500 |
$348 |
48,000 |
$508 |
70,500 |
$668 |
93,000 |
$827 |
|
26,000 |
$352 |
48,500 |
$512 |
71,000 |
$672 |
93,500 |
$831 |
|
26,500 |
$355 |
49,000 |
$515 |
71,500 |
$674 |
94,000 |
$832 |
2385
Commissioner’s Order
2013 Texas Title Insurance Rate Hearing
Docket No. 2749 Page 12 of 13
|
Policies Up To And Including |
Basic Premium |
Policies Up To And Including |
Basic Premium |
Policies Up To And Including |
Basic Premium |
Policies Up To And Including |
Basic Premium |
|
27,000 |
$358 |
49,500 |
$518 |
72,000 |
$677 |
94,500 |
$837 |
|
27,500 |
$361 |
50,000 |
$522 |
72,500 |
$681 |
95,000 |
$842 |
|
28,000 |
$365 |
50,500 |
$525 |
73,000 |
$685 |
95,500 |
$845 |
|
28,500 |
$368 |
51,000 |
$527 |
73,500 |
$688 |
96,000 |
$847 |
|
29,000 |
$373 |
51,500 |
$531 |
74,000 |
$692 |
96,500 |
$851 |
|
29,500 |
$376 |
52,000 |
$536 |
74,500 |
$696 |
97,000 |
$855 |
|
30,000 |
$380 |
52,500 |
$540 |
75,000 |
$700 |
97,500 |
$859 |
|
30,500 |
$383 |
53,000 |
$543 |
75,500 |
$702 |
98,000 |
$862 |
|
31,000 |
$387 |
53,500 |
$547 |
76,000 |
$706 |
98,500 |
$866 |
|
31,500 |
$390 |
54,000 |
$550 |
76,500 |
$709 |
99,000 |
$870 |
|
32,000 |
$393 |
54,500 |
$553 |
77,000 |
$713 |
99,500 |
$873 |
|
|
|
|
|
|
|
100,000 |
$875 |
Title Basic Premium Calculation for Policies in Excess of $100,000
Using the table below, apply these steps to determine basic premium for policies above $100,000:
Step 1 In column (1), find the range that Includes he policy's face value.
Step 2 Subtract the value in column (2) from the policy's face value.
Step 3 Multiply the result in Step 2 by the value in column (3), and round to the nearest dollar.
Step 4 Add the value in column (4) to the result of the value from Step 3.
(See examples provided following the table.)
|
(1) |
(2) |
(3) |
(4) |
|
[$100,001 - $1,000,000] |
100,000 |
0.00554 |
$875 |
|
[$1,000,001 - $5,000,000] |
1,000,000 |
0.00456 |
$5,861 |
|
[$5,000,001 - $15,000,000] |
5,000,000 |
0.00376 |
$24,101 |
|
[$15,000,001 - $25,000,000] |
15,000,000 |
0.00267 |
$61,701 |
|
[Greater than $25,000,000] |
25,000,000 |
0.00160 |
$88,401 |
2385
Commissioner’s Order
2013 Texas Title Insurance Rate Hearing
Docket No. 2749 Page 13 of 13
Examples for Policies in Excess of $100,000
|
Example 1: Example 2: Example 3: Example 4: Example 5:
|
References
- Bulletins Replaced:
- None
- Related Bulletins:
- None
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms:
- None