Bulletin: NJ2016004

Dear Associates:

Changes have been made to the New Jersey Rate Manual effective May 2, 2016. Please take the opportunity to familiarize yourself with the updated Rate Manual, which the Department of Banking and Insurance has approved for use in New Jersey effective May 2, 2016:

Article 1: Definitions:

Section 1.9 includes the following revision: the removal of "and which may include" and the addition of "including" before "settlement related functions" to provide clarification of which settlement-related functions are included in the "Settlement Charge." Section 1.10 of the Definition section was revised to include the following statement, "Nothing contained in this Manual shall be construed to extend the authority or scope of agency of a Title Insurance Agent beyond that which is set forth in its contract with an Insurer." 

Additionally, technical changes have been made to this section. 

Article 2: Methods of Operation:

Technical changes were made to this section.

Article 3: General Rules:

The following language has been added to section 3.1.3: "When an insured contract vendee acquires the fee simple estate and an owner’s policy is requested insuring the acquisition of same, the rate shall be the Standard underwriting rate, subject to a credit equal to the amount of policy premium (exclusive of endorsements and other charges and fees) paid the insuring company for the policy insuring its interest as contract vendee. The credit shall only apply where the insured contract vendee requests an owner’s policy insuring the fee simple estate in the same Land from the same Insurer." 

Additionally, technical changes were made to this section. 

Article 4: Schedule of Rates:

Section 4.8 was amended to remove reference to ALTA Endorsement form 9-06 and ALTA Endorsement form 9.3-06, this Section now includes reference to 9.10-06. References to ALTA 6.1 (NJRB 5-11), ALTA 22-06 (NJRB 5-123) and to the Lender's Survey Endorsement (without Survey) (NJRB 5-37) have been removed. 

Article 5: Examination and Search Charges:

The title of this section was changed from "Examination Charges" to "Examination and Search Charges." Changes to this section include adding the County search to the list of pass through charges along with specifically listing tidelands and surrogates searches as pass through charges. 

Technical changes have also been made to this section. 

Article 6: Settlement Charges:

The title of this section was changed from "Closing or Settlement Charges" to "Settlement Charges." Section 6.2.1 now includes the following language, "travel time in excess of one (1) hour shall be charged at the rate of $25.00 per hour (or fraction thereof)." Sections 6.2.3 and 6.4.3 remove reference to fraction of each additional hour and include reference to providing a preliminary estimate of charges. The last sentence of Section 6.6 is amended to be read as follows, "The special risk premium for the issuance of this letter shall be $75,all of which shall be retained by the Insurer." 

In addition, technical changes were made to this section.

Article 7: Miscellaneous Charges:

This section includes technical changes along with the addition of the following italicized language added in Section 7.6, "When an Insurer or Title Insurance Agent in connection with an insured transaction is requested to provide certain services or incurs fees or costs for items not specifically addressed by Articles 5, 6 or 7 of this Manual, including but not limited to Transaction Management Platform Fees, closing compliance-related fees or charges imposed on a per-transaction basis by lenders or their third-party vendors, wire transfer fees, fees for payoff statements, statutory notary fees, other photocopy charges, or sales, use, services, ad valorem or other taxes or fees imposed by governmental entities or agencies, etc., Insurer or Title Insurance Agent may charge the cost for such services, taxes or fees."

Article 10: Endorsements:

Sections 10.21 - ALTA 3.1-06 - Zoning - Completed Structures and 10.76 ALTA 3.2-06 Zoning - Land Under Development have been amended to improve the consistency of language with Section 10.20 ALTA 3-06 Zoning.  

Technical changes have also been made to this section.

Appendix - Examples:

Page A-7 and A-8 - Examples to be read in conjunction with Section 6.2.3 have been revised in their entirety.

Agents please contact PropertyInfo Customer Care or your title production software vendor to get the new rates/forms changes implemented in your 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.