We have been asked whether or not Rate Rule R-13 would require the payment of the premium charge on a mortgagee title policy binder on interim construction loan at the time the binder is issued.
We are of the opinion that the premium charge should be collected at the time this binder is issued. That failure to do so, would be construed as a violation of Rate Rule R-2 and Article 9.30 of the Texas Insurance Code.
/s/ Ira M. Goodrich
IRA M. GOODRICH
Director of Title Insurance
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