- December 22, 2006
- All Issuing Offices in Florida
- Department of Financial Services Enforcement Action
It has been brought to our attention that the Department of Financial Services ("DFS") has recently fined and placed several title agencies on probation for what it has determined are violations of Rule 690-186-003 FAC regarding remittance to the underwriter on simultaneously issued lender policies.
Specifically, according to the DFS, if the agent charges more than $25 for simultaneous issue, even if $25 is disclosed on the HUD as the risk rate, the 30% to be remitted to the insurer must be based on the total charged, not $25. Accordingly, if an agent charges $100 for simultaneous issue, DFS has determined that $30 must be remitted to the Underwriter.
Presumptively, DFS will use the same standard when determining the proper remittance for those endorsements which have a minimum promulgated rate.
If you have any questions regarding this matter, please contact our
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