- August 10, 2005
- All Issuing Offices in Pennsylvania
- Reduced Rate Notice and Affidavit Revisions
Recently the Title Insurance Rating Bureau of Pennsylvania submitted changes to the Rate Manual to become Effective August 1, 2005.
The impact of these changes is to specifically identify what constitutes "evidence of previous insurance" for the purpose of applying reduced title insurance rates; and secondly, a required Notice to be given to all purchasers or borrowers of title insurance.
New Section 2.9 sets forth the required Notice (substantially in the following form)
"IF THIS CONVEYANCE OR REFINANCE OCCURS WITHIN TEN YEARS OF A PREVIOUS INSURANCE OF THE SAME PROPERTY, YOU MAY BE ENTITLED TO A REDUCED RATE."
and requires that a written notice be provided to every purchaser or borrower to inform them of the availability of various reduced rates provided for in the manual such as: §5.3 the reissue rate, §5.6 the substitution rate, and §5.4 the purchase from an operative builder.
In order to facilitate your transaction and still comply with the new rule, we have revised our standard settlement affidavits (copies attached) which, when signed, will satisfy this requirement.
New Section 2.8 sets forth the evidence upon which you may rely to qualify the transaction for reduced rates:
"(a) the recording (within the period of time specified within the applicable Section of the Manual) of either:
(1) a deed to a bona fide purchaser for value, or
(2) an unsatisfied mortgage to an institutional lender; or in the alternative,
(b) any of the following documents produced by or on behalf of the purchaser of the title insurance policy:
(1) a copy of the prior policy;
(2) a copy of the marked-up commitment;
(3) a settlement sheet showing payment of a title insurance premium; or
(4) other written evidence acceptable to the Insurer that title insurance coverage was purchased for the property."
PLEASE REMEMBER THAT GIVING THE REDUCED RATES FOR QUALIFYING TRANSACTIONS IS MANDATORY.
A friendly reminder: There are no reduced rates available under the Approved Attorney system.
We have included with this Bulletin the Manual replacement pages for immediate insertion in your Rate Manual along with copies of the new Affidavits. In the near future, both the Manual and the Affidavits will be available on Virtual Underwriter. Until that time, please call with your e-mail address and I can e-mail copies directly into your computer.
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.
- Bulletins Replaced:
- Related Bulletins:
- Underwriting Manual:
- Exceptions Manual: