Bulletin: NM000012
The Superintendent of Insurance adopted new rates, forms and rules effective
NEW RATES
The variable portion of the rates was reduced for an overall rate decrease of 5.0%. Flat fees (such as endorsements and simultaneous issue rates) were not changed, except a...
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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.
EXHIBIT 1
PREMIUM RATES FOR ORIGINAL OWNER'S POLICIES: The following schedule of premium rates for original owner's policies shall be in effect from July 1, 2006 until modified by the superintendent:
NEW MEXICO
SCHEDULE OF BASIC PREMIUM RATES
For Original Owners Policies of Title Insurance
Effective July 1, 2006
| Liability Charge Up to: |
Total Charge: | Liability Charge Up to: |
Total Charge: | Libility Charge Up to: |
Total Charge: |
| 10,000 | 176 | 24,000 | 289 | 38,000 | 388 |
| 11,000 | 184 | 25,000 | 2906 | 39,000 | 394 |
| 12,000 | 193 | 26,000 | 304 | 40,000 | 401 |
| 13,000 | 201 | 27,000 | 311 | 41,000 | 407 |
| 14,000 | 210 | 28,000 | 319 | 42,000 | 414 |
| 15,000 | 218 | 29,000 | 327 | 43,000 | 421 |
| 16,000 | 227 | 30,000 | 334 | 44,000 | 427 |
| 17,000 | 235 | 31,000 | 342 | 45,000 | 434 |
| 18,000 | 244 | 32,000 | 348 | 46,000 | 440 |
| 19,000 | 251 | 33,000 | 355 | 47,000 | 447 |
| 20,000 | 259 | 34,000 | 361 | 48,000 | 454 |
| 21,000 | 266 | 35,000 | 368 | 49,000 | 460 |
| 22,000 | 274 | 36,000 | 375 | 50,000 | 467 |
| 23,000 | 281 | 37,000 | 381 |
|
Amounts of Insurance
(in thousands) |
Portion of rate
(per thousand) subject to agent commission, add: |
agent retention percentage
|
Additional rate per $1000 to be collected on policy amounts in excess of $10 million (solely for underwriter)
|
Total Charged to Consumer
|
|
over $50 to $100
|
$5.68
|
78-80%
|
|
$5.68
|
|
over $100 to $500
|
$4.47
|
78-80%
|
|
$4.47
|
|
over $500 to $2,000
|
$3.51
|
78-80%
|
|
$3.51
|
| 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 | $1.75 | 60% | $0.25 | $2.00 |
| over $50,000 | $1.40 | 50% | $0.25 | $1.65 |
EXHIBIT 2
MARKETING AND CHARGES FOR SERVICES
(Additions are capitalized. Deletions are stricken.)
13.14.3.13 CHARGE TO BE MADE FOR ALL SERVICES:
A. No person doing the business of title insurance shall furnish or offer to furnish services, information, appraisals, subdivision ownership lists, farm packages, estimates or income production potential, pre-search or listing packages, information kits or similar packages containing information about one or more parcels of real property without making AN ACTUAL charge for the same.
B. TITLE INSURERS AND TITLE INSURANCE AGENTS SHALL COLLECT ACTUAL CHARGES IN THE ORDINARY COURSE OF THEIR BUSINESS OPERATIONS. TITLE INSURERS AND TITLE INSURANCE AGENTS SHALL NOT PROVIDE ADDITIONAL OR NEW SERVICES TO INDIVIDUALS WHO HAVE FAILED TO PAY ACTUAL CHARGES FOR PRIOR SERVICES.
13.14.3.15 MARKETING ACTIVITIES. A TITLE INSURER OR TITLE INSURANCE AGENT CONDUCTING THE BUSINESS OF TITLE INSURANCE SHALL NOT:
A. MAKE ANY MONETARY PAYMENT TO ANY PRODUCER, UNLESS THE PAYMENT IS FOR THE ACTUAL COST OF BONA FIDE SUPPLIES OR SERVICES RECEIVED BY THE TITLE INSURER OR AGENT;
B. MAKE ANY IN KIND PAYMENT TO ANY PRODUCER OR PROVIDE ANY FREE PRODUCTS OR SERVICES, INCLUDING BUT NOT LIMITED TO POSTAGE, POSTAGE MACHINES, FACSIMILE MACHINES, COMPUTER HARDWARE OR SOFTWARE, COPY MACHINES, TELEPHONES, OR OFFICE SPACE TO ANY PRODUCER;
C. ENGAGE IN JOINT ADVERTISING BY ANY MEANS OF COMMUNICATION OR MEDIA THAT NAMES A SPECIFIC PRODUCER UNLESS THE PRODUCER PAYS ITS SHARE OF THE ADVERTISING COST IN DIRECT PROPORTION TO ITS PROMINENCE IN THE ADVERTISEMENT;
D. PROVIDE VIDEO EQUIPMENT OR ANY OTHER TYPE OF ELECTRONIC OR CYBER EQUIPMENT OR SERVICES, SUCH AS "VIRTUAL TOURS" UNLESS THE PRODUCER PAYS AT LEAST THE ACTUAL COST FOR THE EQUIPMENT OR SERVICES;
E. PROVIDE ADVERTISING BY ANY MEANS OF COMMUNICATION OR MEDIA FOR A PRODUCER UNLESS THE PRODUCER PAYS AT LEAST THE ACTUAL COST FOR THE ADVERTISEMENT TO THE TITLE INSURER OR AGENT;
F. SPONSOR, CO-SPONSOR, PROVIDE FREE DOOR PRIZES, REFRESHMENTS OR MEALS AT ANY PRODUCER'S OPEN HOUSE, TOUR OF OPEN HOUSES, AWARDS BANQUET, OR COMPANY PARTY UNLESS A REPRESENTATIVE OF THE TITLE INSURER OR AGENT IS PRESENT AND EDUCATIONAL OR MARKETING MATERIALS AND SIGNAGE ARE ON-SITE FOR THE FUNCTION; AT NO TIME SHALL THE COST OF ANY SPONSORSHIP EXCEED THE COMMENSURATE ADVERTISING BENEFIT OF THE EDUCATIONAL OR MARKETING MATERIALS AND SIGNAGE PROVIDED;
G. SPONSOR, CO-SPONSOR, PROVIDE FREE DOOR PRIZES, REFRESHMENTS OR MEALS AT ANY PRODUCER'S OPEN HOUSE UNLESS THE TITLE INSURER OR AGENT RECEIVES COMMENSURATE ADVERTISING BENEFIT;
H. PROVIDE FREE MEALS TO ANY PRODUCER UNLESS THE TITLE INSURER OR AGENT IS PRESENT, TITLE INSURANCE BUSINESS IS DISCUSSED AND THE MEALS ARE NOT A REGULAR OCCURRENCE; A TITLE INSURER OR AGENT SHALL NOT PROVIDE FREE RECREATIONAL ACTIVITIES OR ENTERTAINMENT TO ANY PRODUCER UNDER ANY CIRCUMSTANCE;
I. ENTER INTO ANY LEASE OR RENTAL AGREEMENT FOR OFFICE SPACE WITH A PRODUCER UNLESS:
(1) THE LEASE OR RENTAL AGREEMENT IS FOR COMMERCIALLY REASONABLE TERMS AND AT LEAST THE FAIR MARKET RENTAL RATE OF THE PROPERTY; AND
(2) THE PROPERTY IS PHYSICALLY OCCUPIED BY AT LEAST ONE BONA FIDE FULL TIME EMPLOYEE OF THE TITLE INSURER OR AGENT IF THE PRODUCER IS THE LESSOR OR BY ONE BONA FIDE FULL TIME EMPLOYEE OF THE PRODUCER IF THE TITLE INSURER OR AGENT IS THE LESSOR;
J. PROVIDE A CAREER CONTINUING EDUCATION COURSE FOR PRODUCERS, UNLESS EACH PRODUCER IN ATTENDANCE PAYS AT LEAST THE ACTUAL PER PERSON COST FOR THE COURSE TO THE TITLE INSURER OR AGENT; OR
K. ENGAGE IN ANY OTHER ACTIVITY OTHERWISE PROHIBITED BY SECTION 59A-16-17 NMSA 1978.
13.14.1.7 DEFINITIONS "A": As used in 13 NMAC Chapter 14, and also in interpreting the New Mexico Title Insurance Act, the following terms shall have the following meanings.***
B. ACTUAL CHARGE. A CHARGE APPROXIMATING THE COST OF THE ACTUAL TIME, EQUIPMENT, AND EXPENSES INCURRED.
13.14.1.22 DEFINITIONS "P": As used in 13 NMAC Chapter 14, and also in interpreting the New Mexico Title Insurance Act, the following terms shall have the following meanings.***
C. PRODUCER. A REAL ESTATE BROKER, QUALIFYING BROKER, REAL ESTATE SALES PERSON, LENDER, MORTGAGE BROKER, MORTGAGE COMPANY, BUILDER, DEVELOPER, ATTORNEY, ARCHITECT, OR ANY PERSON OR ENTITY IN A POSITION TO REFER BUSINESS TO A TITLE INSURER OR TITLE INSURANCE AGENT.
EXHIBIT 6
13.14.8.11 NON-IMPUTATION ENDORSEMENT:
The NM form 28, non-imputation endorsement, may be issued on an EXISTING OR CURRENTLY ISSUED owner's policy or loan policy insuring title to property held by a corporation, LIMITED LIABILITY COMPANY, or partnership AS AN INSURED EVEN when there has been no conveyance of title of such property, but there has been (1) a transfer/ ISSUANCE of all OR A PORTION of the stock of the INSURED corporation, (2) A TRANSFER/SUBSTITUTION OF ALL OR A PORTION OF THE INTERESTS OF THE INSURED PARTNERSHIP, or (3) A TRANSFER/SALE OF ALL OR A PORTION OF THE MEMBERSHIP INTERESTS OF THE INSURED LIMITED LIABILITY COMPANY.
This endorsement may be issued only upon the written authorization of the underwriter. The issuing agent shall retain such written authorization of the underwriter for a period of two years following the issuance of THE endorsement.