Bulletin: TX2012001

Date:
January 30, 2012
To:
All Texas Issuing Offices
RE:
T-19.2 and T-19.3 and mineral credits

Dear Associates:

When last we communicated on this subject, the legislature had passed HB 2408 which among other things eliminated the 2% credit when a policy is issued with a general mineral exception and removed the premium charge from loan policies. We expected at that time that the Commissioner of Insurance would enact procedural rules to implement the law’s provision before January 1, 2012. As you know, a new Commissioner was appointed and no such changes have yet been approved.

There will be a hearing on some 91 agenda items on February 28, 2012. Among  the agenda items proposed by the Texas Insurance Department staff is the elimination of R-36 (the credit rule) and amending T-29.1 to provide that the premium for an owner’s policy T-19.2 or T-19.3 remains $50 and the premium for a loan policy T-19.2 or T-19.3 is $0. While it is possible that the Commissioner would approve these new agenda items effective that day, historically it is several weeks until the final order is issued making the changes effective. 

The TDI staff has stated that they recognize that the change in the law trumps the existing regulations. Clearly, even though the Commissioner has not formally changed the regulations, title companies must comply with the law as must the TDI Staff. You should change your procedures and software to reflect that there is no longer a 2% credit when a general mineral exception is used and that the premium for a loan policy T-19.2 or T-19.3 is $0.
 
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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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None