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Bulletin: AL2015001
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Bulletin: AL2015001
Dear Associates:
Changes have been made to the Alabama Rate Manual for policies insuring reverse mortgages. The Manual has been filed with the Alabama Department of Insurance and is effective January 9, 2014. Please take the opportunity to familiarize yourself with the updated Rate Manual. (Click here.)
A Loan policy insuring the priority and enforceability of a reverse mortgage shall not be issued for an amount less than the full principal debt. The charge for a loan policy insuring a reverse mortgage shall be as follows:
Per Thousand
Up to $100,000 of liability written ................................................. $3.50
Over $100,000 and up to $500,000, add ....................................... $3.00
Over $500,000 and up to $10,000,000, add ................................. $2.00
Over $10,000,000 and up to $15,000,000, add ............................ $1.50
Over $15,000,000, add .................................................................. $1.00
Minimum charge ..........................................................................$125.00
A reissue credit of forty percent (40%) shall apply where a prior Owner’s Policy was previously issued to the reverse-mortgage mortgagor(s). This credit shall apply up to the amount of the prior Owner’s Policy. If the amount of insurance for the new Loan Policy insuring the reverse mortgage is in excess of the amount of the prior Owner’s Policy, the excess must be computed at the original charge from the appropriate bracket or brackets. The minimum charge is $125. Underwriter is under no obligation to seek or make a determination of the existence of a previous policy.
Please contact your software provider to have your production system updated with the rate changes. AFW or AIM+ users should contact PropertyInfo Customer Care to get the new rate(s) implemented in their AFW or AIM+ system.
If you have any questions relating to this or other bulletins, please contact the Alabama State Office for assistance.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- None
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms:
- None