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Title Rate Rule Appendix

Item 2002-39

Rate Rule R-5 is amended by adding a new subsection C as follows:

C. An insured under an existing Owner Policy not issued containing P-8 exceptions may, after completion of improvements on the property insured, turn in the existing Owner Policy and receive credit for the premium previously paid when purchasing a new Owner Policy in an amount greater than the existing Owner Policy. A Mortgagee Policy may be simultaneously issued for the premium established in R-5.A. In no event may the Owner Policy be issued for less than the minimum promulgated basic premium rate. This subsection applies only if (1) the land is residential property, (2) the existing Owner Policy covered the identical land to be covered by the new Owner Policy to be issued, (3) the new Owner Policy is to be issued within four (4) years after the date of the existing Owner Policy, and (4) there has been no change in ownership of such land.

ADOPTED


Item 2002-40

Rate Rule R-15 is amended as follows:

R-15. Owner Policy Endorsement.

A premium of $50.00 shall be charged for the issuance of each endorsement provided for in Procedural Rule P-9.a.(3) or Procedural Rule P-9.a.(4).

ADOPTED


Item 2002-41

Rate Rule R-27 is amended as follows:

Rate Rule R-27: Texas Residential Limited Coverage Junior Mortgagee Policy

a. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) is issued pursuant to P-46, the premium shall be as follows:

(i) For policy amount of $10,000.00 or less, the premium shall be $150.00;

(ii) For policy amount more than $10,000.00, but not more than $50,000.00, the premium shall be $175.00; and

(iii) For policy amount more than $50,000.00, but not more than $100,000.00, the premium shall be $200.00.

b. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and the Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement is issued in accordance with Rule P-46.B, the premium for such endorsement shall be $25.00.

c. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (Form T-45) is issued in accordance with Rule P-46.C, the premium for such endorsement shall be $50.00.

d. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (Form T-46) is issued in accordance with Rule P-46.D, the premium for such endorsement shall be $25.00.

ADOPTED


Item 2002-43

R-30 PREMIUM FOR ACCESS ENDORSEMENT (T-23).

When the Access Endorsement (T-23) is issued with a Mortgagee Policy of Title Insurance (T-2) or Owner Policy (T-1) in accordance with Rule P-54, the premium for the Access Endorsement (T-23) shall be $100 for each policy.

ADOPTED


Item 2002-44

Rate Rule R-29 is amended as follows:

R-29 PREMIUM FOR RESTRICTIONS, ENCROACHMENTS, MINERALS ENDORSEMENT (T-19) AND PREMIUM FOR RESTRICTIONS, ENCROACHMENTS, MINERALS ENDORSEMENT ­ OWNER POLICY (T-19.1).

A. When the Restrictions, Encroachments, Minerals Endorsement (T-19) is issued with a Mortgagee Policy of Title Insurance (T-2) on residential real property in accordance with Rule P-50, the premium for the Restrictions, Encroachments, Minerals Endorsement (T-19) shall be 5% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $25.00.

B. When the Restrictions, Encroachments, Minerals Endorsement (T-19) is issued with a Mortgagee Policy of Title Insurance (T-2) on land which is not residential real property, in accordance with Rule P-50, the premium for the Restrictions, Encroachments, Minerals Endorsement (T-19) shall be 10% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $25.00.

C. When the Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) is issued with an Owner Policy of Title Insurance (T-1) on land which is not residential real property, in accordance with Rule P-50, the premium for the Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) shall be 15% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $25.00. A Company may not issue its Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) on residential real property.

ADOPTED


Item 2002-45

R-31 PREMIUM FOR NON-IMPUTATION ENDORSEMENT (T-24).

When the Non-imputation Endorsement (T-24) is issued with an Owner Policy (T-1) in accordance with Rule P-55, the premium for the Non-imputation Endorsement (T-24) shall be 5% of the Basic Rate for each policy provided that the minimum premium shall be not less than $25.00.

ADOPTED


Item 2002-46

R-32 PREMIUM FOR CONTIGUITY ENDORSEMENT (T-25).

When the Contiguity Endorsement (T-25) is issued with a Mortgagee Policy (T-2) or an Owner Policy (T-1) in accordance with Rule P-56, the premium for the Contiguity Endorsement (T-25) shall be $100 for each policy.

ADOPTED


Item 2002-47

R-33 PREMIUM FOR ADDITIONAL INSURED ENDORSEMENT (T-26).

When the Additional Insured Endorsement (T-26) is issued with an Owner Policy in accordance with Rule P-57, the premium for the Additional Insured Endorsement (T-26) shall be 10% of the Basic Rate for each policy provided that the minimum premium shall be not less than $25.00.

ADOPTED


Item 2002-51

Rate Rule R-11, subsection g is amended as follows:

**********************************************

g. Endorsement issued as provided in Rule P-9b(9) ----A premium of $25.00 shall be charged for the issuance of each endorsement provided for in Rule P-9b(9).

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ADOPTED


Item 2002-55

R-8. Mortgagee Policy, on a Loan to take Up, Renew, Extend or Satisfy an Existing Lien(s)----On a Mortgagee Policy, issued on a loan to fully take up, renew, extend or satisfy an old mortgage(s) that is already insured by a Mortgagee Policy(ies), the new policy being in the amount of the note of the new mortgage, the premium for the new policy shall be at the Basic Rate, but a credit shall reduce the premium by the following amount:

(a) 40% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring within two (2) years from the date of the Mortgagee Policy insuring the old mortgage;

(b) 35% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than two (2) years but less than three (3) years from the date of the Mortgagee Policy insuring the old mortgage;

(c) 30% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than three (3) years but less than four (4) years from the date of the Mortgagee Policy insuring the old mortgage;

(d) 25% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than four (4) years but less than five (5) years from the date of the Mortgagee Policy insuring the old mortgage;

(e) 20% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than five (5) years but less than six (6) years from the date of the Mortgagee Policy insuring the old mortgage;

(f) 15% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than six (6) years but less than seven (7) years from the date of the Mortgagee Policy insuring the old mortgage.

After the lapse of seven (7) years from the date of the Mortgagee Policy insuring the old mortgage, the Basic Rate shall apply.

Where more than one chain of title, as the term "chain of title" is from time to time defined by the Commissioner, was involved in the issuance of the original policy(ies), and the new policy includes one or more of such additional chains of title involved in the issuance of the original policy(ies), an additional premium charge as established by the Commissioner shall be added for each additional chain of title involved. (See Rule R-9 for definition of "additional chain.")

On Mortgagee Policies, issued on multiple loans to fully take up, renew, extend or satisfy an old mortgage insured by a single Mortgagee Policy, the new policies being in the amount of the new mortgages, the premium for the larger Mortgagee Title Policy shall be at the Basic Rate, but a credit shall be allowed upon the premium as set forth previously in this rule. The premium for the remaining new Mortgagee Title Policy(ies) shall be at the Basic Rate. A credit shall still be allowed upon the premium as set forth in this rule even if not all of the new loans are insured or if only one of the new loans is insured. The reduction in rate as herein prescribed shall not apply to any case where any additional property not covered by the original policy(ies) is included in the policy to be issued.

In the calculation of the credit, the amount from the written payoff balance shall not exceed 100% of the original amount of the old mortgage. In no event shall the premium collected be less than the regular minimum promulgated rate for a Mortgagee Policy.

THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies issued by reason of notes being apportioned to individual units in connection with a master policy covering the aggregate indebtedness, including improvements. Individual Mortgagee Policies must be issued at the Basic Rate.

ADOPTED



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Last updated: 09/06/2014

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