Bulletin: TX2013002

Date:
April 04, 2013
To:
All Texas Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - Rate Increase effective May 1, 2013

Dear Associates:

As you should know by now, the Texas Insurance Commissioner has increased Texas title insurance premiums by 3.8% effective May 1, 2013

As with any change in the rates, the same questions always arise: 

Q.  Does the increase affect endorsements?  

A.   No. The rate increase applies only to the premium charged for polices, loan and owner’s policies. 

Q.   If we have already issued (or issue during April, 2013) what premium do we show on our commitment?  

A.   The effective date (policy date) controls the premium. If you anticipate policy being dated May 1, 2013 or later, you should show the premium at the new amounts. If you are not sure of the closing date, you should show both with one having a closing date of before May 1 and the other showing the closing date of on or after May 1, 2013. 

Q.  Can we close on April 29 and hold the policy until May 2 and charge the higher rate?  

A.   No. If the transaction is fully closed and funded the closing is April 29 and the policy should be dated that date. 

Q.  Will rate cards be available before May 1, 2013?  

A.   Rate cards will be available through Stewart forms or Stewart marketing. 

Q.  If I charge too much or too little, what should I do?  

A.   Rate Rule R-2 establishes the appropriate rate. If you charge too much, you should refund the overcharge promptly. If you charge too little, you must make every reasonable effort to bill and obtain payment. Remember that consistently undercharging could be considered a violation of P-53. 

Q.  Do you have examples of the new rates and how to compute rates over $100,000?  

A.   Yes. The commissioner’s order furnished both the basic rate charge and the methodology to compute rates for policies above $100,000. A copy of that information is set out on the attached Schedule.  

If you would like to request the rate cards now, please send an e-mail to stgforms@stewart.com or go to www.stewartmarketing.com to place the order and we will ship upon receipt from the printers. 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

 

 

2385

Commissioner’s Order
2012 Texas Title Insurance Rate Hearing
Docket No. 2749                                                                                             Page 11 of 13

EXHIBIT A

 TEXAS TITLE INSURANCE BASIC PREMIUM RATES
Rates Effective May 1, 2013 

Policies Up To And Including

Basic Premium

Policies Up To And Including

Basic Premium

Policies Up To And Including

Basic Premium

Policies Up To And Including

Basic Premium

$10,000

$238

$32,500

$398

$55,000

$556

$77,500

$716

10,500

$242

33,000

$401

55,500

$559

78,000

$720

11,000

$244

33,500

$405

56,000

$565

78,500

$725

11,500

$248

34,000

$408

56,500

$568

79,000

$729

12,000

$252

34,500

$412

57,000

$571

79,500

$730

12,500

$255

35,000

$415

57,500

$575

80,000

$734

13,000

$260

35,500

$419

58,000

$579

80,500

$738

13,500

$264

36,000

$422

58,500

$581

81,000

$742

14,000

$267

36,500

$426

59,000

$585

81,500

$744

14,500

$270

37,000

$429

59,500

$589

82,000

$748

15,000

$272

37,500

$433

60,000

$593

82,500

$753

15,500

$276

38,000

$437

60,500

$597

83,000

$757

16,000

$280

38,500

$441

61,000

$600

83,500

$759

16,500

$284

39,000

$443

61,500

$603

84,000

$762

17,000

$288

39,500

$447

62,000

$607

84,500

$767

17,500

$292

40,000

$450

62,500

$611

85,000

$770

18,ooo

$296

40,500

$455

63,000

$613

85,500

$773

18,500

$298

41,000

$457

63,500

$617

86,ooo

$776

19,000

$301

41,500

$462

64,000

$621

86,500

$781

19,500

$304

42,000

$465

64,500

$625

87,000

$785

20,000

$309

42,500

$469

65,000

$628

87,500

$788

20,500

$312

43,000

$471

65,500

$631

88,000

$791

21,000

$317

43,500

$475

66,000

$635

88,500

$795

21,500

$320

44,000

$479

66,500

$640

89,000

$799

22,000

$324

44,500

$483

67,000

$644

89,500

$801

22,500

$327

45,000

$487

67,500

$645

90,000

$804

23,000

$330

45,500

$490

68,000

$649

90,500

$809

23,500

$333

46,000

$493

68,500

$653

91,000

$813

24,000

$337

46,500

$497

69,000

$656

91,500

$817

24,500

$340

47,000

$499

69,500

$659

92,000

$819

25,000

$345

47,500

$503

70,000

$664

92,500

$823

25,500

$348

48,000

$508

70,500

$668

93,000

$827

26,000

$352

48,500

$512

71,000

$672

93,500

$831

26,500

$355

49,000

$515

71,500

$674

94,000

$832

 

 

 

2385

Commissioner’s Order
2013 Texas Title Insurance Rate Hearing
Docket No. 2749                                                                                              Page 12 of 13 

Policies Up To And Including

Basic Premium

Policies Up To And Including

Basic Premium

Policies Up To And Including

Basic Premium

Policies Up To And Including

Basic Premium

27,000

$358

49,500

$518

72,000

$677

94,500

$837

27,500

$361

50,000

$522

72,500

$681

95,000

$842

28,000

$365

50,500

$525

73,000

$685

95,500

$845

28,500

$368

51,000

$527

73,500

$688

96,000

$847

29,000

$373

51,500

$531

74,000

$692

96,500

$851

29,500

$376

52,000

$536

74,500

$696

97,000

$855

30,000

$380

52,500

$540

75,000

$700

97,500

$859

30,500

$383

53,000

$543

75,500

$702

98,000

$862

31,000

$387

53,500

$547

76,000

$706

98,500

$866

31,500

$390

54,000

$550

76,500

$709

99,000

$870

32,000

$393

54,500

$553

77,000

$713

99,500

$873

 

 

 

 

 

 

100,000

$875


Title Basic Premium Calculation for Policies in Excess of $100,000

Using the table below, apply these steps to determine basic premium for policies above $100,000:

Step 1  In column (1), find the range that Includes he policy's face value.
Step 2  Subtract the value in column (2) from the policy's face value.
Step 3  Multiply the result in Step 2 by the value in column (3), and round to the nearest dollar.
Step 4  Add the value in column (4) to the result of the value from Step 3.

(See examples provided following the table.) 

(1)
Policy Range

(2)
Subtract

(3)
Multiply by

(4)
Add

[$100,001 -  $1,000,000]

100,000

0.00554

$875

[$1,000,001 - $5,000,000]

1,000,000

0.00456

$5,861

[$5,000,001 - $15,000,000]

5,000,000

0.00376

$24,101

[$15,000,001 - $25,000,000]

15,000,000

0.00267

$61,701

[Greater than $25,000,000]

25,000,000

0.00160

$88,401

 

 

2385

Commissioner’s Order
2013 Texas Title Insurance Rate Hearing
Docket No. 2749                                                                                          Page 13 of 13 

 

Examples for Policies in Excess of $100,000 

Example 1:
(1) Policy is $268,500
(2) Subtract $100,000 ==> $268,500 - $100,000 ==>Result= $168,500
(3) Multiply by 0.00554 ==> $168,500 x 0.00554 ==> $933.49 ==>Result= $933
(4) Add $875 ==> $933 + $875 ==>Final Result= $1,808

Example 2:
(1) Policy is $4,826,600
(2) Subtract $1,000,000 ==> $4,826,600 - $1,000,000 ==>Result= $3,826,600
(3) Multiply by 0.00456 ==> $3,826,600 x 0.00456 ==> $17,449.30 ==>Result= $17,449
(4) Add $5,861 ==> $17,449 + $5,861 ==>Final Result= $23,310

Example 3:
(1) Policy is $10,902,800
(2) Subtract $5,000,000 ==> $10,902,800 - $5,000,000 ==> Result = $5,902,800
(3) Multiply by 0.00376 ==> $5,902,800 x 0.00376 ==> $22,194.53 ==>Result= $22,195
(4) Add $24,101 ==> $22,195 + $24,101 ==>Final Result= $46,296

Example 4:
(1) Policy Is $17,295,100
(2) Subtract $15,000,000 ==> $17,295,100 - $15,000,000 ==>Result= $2,295,100
(3) Multiply by 0.00267 ==> $2,295,100 x 0.00267 ==> $6,127.92 ==>Result= $6,128
(4) Add $61,701 ==> $6,128 + $61,701 ==>Final Result= $67,829 

Example 5:
(1) Policy Is $39,351,800
(2) Subtract $25,000,000 ==> $39,351,800 - $25,000,000 ==>Result= $14,351,800
(3) Multiply by 0.00160 ==> $14,351,800 x 0.00160 ==> $22,962.88 ==> Result= $22,963
(4) Add $88,401 ==> $22,963 + $88,401 ==>Final Result= $111,364

 

 

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