Bulletin: NM2018001

Date:
June 26, 2018
To:
All New Mexico Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - Change in Title Insurance Rates and Revised Rules for Title Insurance Non-Rate Matters Adopted

Dear Associates:

The New Mexico Office of Superintendent of Insurance has ordered the following changes effective July 1, 2018:

RATE MATTERS

1. The Basic Premium Rates is decreased by 9.5%.

Liability

Total

Liability

Total

Liability

Total

Charge

Charge:

Charge

Charge:

Charge

Charge:

Up to:

 

Up to:

 

Up to:

 

10,000

176

24,000

290

38,000

388

11,000

184

25,000

296

39,000

395

12,000

193

26,000

304

40,000

402

13,000

201

27,000

311

41,000

407

14,000

210

28,000

320

42,000

414

15,000

218

29,000

327

43,000

421

16,000

227

30,000

334

44,000

428

17,000

235

31,000

342

45,000

434

18,000

244

32,000

348

46,000

440

19,000

252

33,000

356

47,000

447

20,000

260

34,000

361

48,000

454

21,000

265

35,000

368

49,000

460

22,000

273

36,000

376

50,000

468

23,000

281

37,000

381

 

 

For amounts of insurance

Portion of rate (per thousand)

Agent

Additional rate per $1000 to be collected on policy amounts in excess of $10 million (solely for underwriter)

Total

(in thousands)

subject to agent commission,

retention percentage

Charged to

 

add

 

Consumer

over $50 to $100

$5.68

80%

 

$5.68

over $100 to $500

$4.47

80%

 

$4.47

over $500 to $2,000

$3.50

80%

 

$3.50

over $2,000 to $5,000

$2.82

75%

 

$2.82

over $5,000 to $10,000

$2.34

70%

 

$2.34

over $10,000 to $25,000

$2.01

65%

$0.25

$2.26

over $25,000 to $50,000

$1.76

60%

$0.25

$2.01

over $50,000

$1.40

50%

$0.25

$1.65

                   

2. The following rate regulations have changed as stated below:

a. The Simultaneous Issue Loan rate shall be increased from $30 to $100 in 13.14.9.30 NMAC “Simultaneous Issue Owner’s and Mortgagee’s Policies.”

b. There shall be a new $50 endorsement charge for survey coverage on loan policy in 13.14.10.10 NMAC “survey coverage.”

c. The charge for the deletion of Standard Exception 4 shall increase from $25 to $50 in 13.14.10.9 NMAC “Mechanics’ Lien Coverage in Owners’ Policy (Period Not Expired)” and in 13.14.9.40 NMAC “Insuring Construction Loans and Deleting Standard Exception 4 in Loan Policies.”

d. The charge for NM Forms 80 and 80.1 shall increase from $65 to $125 in 13.14.10.61 NMAC “Mortgage Modification Endorsements.”

e. The charge for NM Form 80.2 shall increase from $65 base to a $125 base, plus an additional premium calculated by determining the difference between the charge for a loan policy in the amount of the current amount of insurance before the amount of insurance is increased, and the charge for a loan policy in the amount of the increased insurance utilizing the appropriate brackets in the schedule of basic premium rates in effect as of the date of the endorsement in 13.14.10.61 NMAC “Mortgage Endorsements.” The minimum combined charge for the NM form 80.2 endorsement is $175 for each endorsement issued in 13.14.10.61 NMAC “Mortgage Endorsements.”

f. The charge for NM Form 90 shall increase from $125 to $175 in 13.14.9.42 NMAC “Residential Limited Coverage Mortgage Policy.”

g. The minimum combined charge for an endorsement on a loan policy to insure the validity and priority of a lien for additional advances shall increase from $50 to $100 in 13.14.10.11 NMAC.

h. There shall be a new charge of $25 for NM form 26 Partial Coverage Endorsement in 13.14.10.64 NMAC.

NON-RATE/RULE MATTERS

13.14.8.13    INSURING AROUND ENDORSEMENT:

Has been amended to allow issuance where the insurer has otherwise determined that a lien does not pose a material risk under the policy(ies) or said lien or other adverse matter may be intentionally omitted from the commitment or policy.

13.14.9.16     ADDITIONAL CHARGES

The phrase “of platted tracts” has been deleted as it is unnecessary and potentially confusing because the premium is properly applicable to both platted and unplatted tracts of land.  

13.14.9.19     NON-POLICY RATES

Has been amended to add that if a version of the pro forma policy is issued to correct an error by the issuing agent, the version shall be issued at no charge.

13.14.9.39     SUBSTITUTION RATE ON LOANS TO TAKE UP, RENEW, EXTEND OR SATISFY AN EXISTING INSURED LOAN

Has been amended to more closely track the language in N.M. Stat. Ann. § 59A-30-6.1

13.14.18.13     NM FORM 6: COMMITMENT FOR TITLE INSURANCE

Has been amended to delete the arbitration provision and the gap exception.

Please note that you should contact PropertyInfo Customer Care or your title production software vendor to get the new rate changes implemented in your system. 

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.  

 

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