22.214.171.124 NM FORM 49: NOTICE OF AVAILABILITY OF FUTURE INCREASE IN COVERAGE AND POTENTIAL PREMIUM DISCOUNT FOR FUTURE POLICIES:
NOTICE OF AVAILABILITY OF FUTURE INCREASE IN COVERAGE AND POTENTIAL PREMIUM DISCOUNTS FOR FUTURE POLICIES
(To be attached to all policies issued on one to four family residential properties)
(Name, Address, and Telephone Number of Agency/Insurer)
A. Notice of Availability of Future Increase in Coverage.
READ THIS NOTICE TO FAMILIARIZE YOURSELF WITH IMPORTANT INFORMATION REGARDING YOUR TITLE INSURANCE COVERAGE
An Owner’s Policy may be endorsed to reflect the current value of the estate insured (upon payment of the current basic premium according to the schedule less the amount previously paid for said policy) if the insurer’s underwriting standards are met; provided, however, that the effective date of the policy shall remain unchanged and no affirmative coverages or down dates shall be added to the policy.
PLEASE KEEP THIS TITLE INSURANCE POLICY. IT IS AN IMPORTANT LEGAL DOCUMENT. AS YOU REVIEW IT FROM TIME TO TIME, BE AWARE THAT YOU MAY INCREASE YOUR TITLE POLICY AMOUNT IF YOU ADD IMPROVEMENTS, OR IF THE VALUE OF YOUR PROPERTY INCREASES OVER TIME, BY REQUESTING AN INCREASE IN COVERAGE AND PAYING THE APPLICABLE PREMIUMS. THIS WILL NOT CHANGE THE TERMS OF THE POLICY OTHER THAN THE AMOUNT.
B. Notice of Potential Premium Discounts for Future Policies.
YOUR TITLE POLICY IS AN IMPORTANT LEGAL DOCUMENT AND SHOULD BE STORED IN A SAFE, SECURE PLACE. YOUR TITLE POLICY MAY ENTITLE YOU TO VALUABLE DISCOUNTS IN THE FUTURE.
New Mexico title insurance premium rates are set every other year or approved by the New Mexico Superintendent of Insurance. These are the rates that must be charged for title insurance policies, title binders, and title policy endorsements by title insurance companies doing business in New Mexico. The Superintendent of Insurance does not regulate other title company charges.
Subject to limited exception, all premiums for title insurance policies are based on the amount of insurance coverage. Larger policies cost more than smaller policies.
In the future, there may be certain discounts from the standard owner’s policy rates available to you, if your transaction meets the requirements for any particular discount. These current discounts are summarized below:
Owner Policy Discounts:
Reissue Discount. If you have an existing owner’s policy of title insurance on the property when you sell your property, then a discount may apply based upon the age of the prior policy and the amount of the prior policy pursuant to 126.96.36.199 NMAC.
Subdivider/Builder Rate. Subject to certain conditions, if you are the seller of multiple lots within the same subdivision, you may be entitled to a 25% discount off the standard owner’s policy rate, pursuant to 188.8.131.52 NMAC and 184.108.40.206 NMAC.
Quick Resale Rate. If you purchase an owner’s policy within 30 days of the issuance of a prior policy on the same property, the cost of the new policy is 30% of the standard owner’s policy rate, pursuant to 220.127.116.11 NMAC.
Loan Policy Discounts:
General Lender Policy Rate. Loan policies are generally 90% of the cost of the full basic rate of the owner’s policy, unless one of the discounts available for loan policies applies, pursuant to 18.104.22.168 NMAC.
Simultaneous Issue Rate. If a lender title policy is issued simultaneously with the issuance of an owner’s policy, the cost of the lender policy (up to the face amount of the owner’s policy) is $100.00, pursuant to 22.214.171.124 NMAC.
Refinance Transactions. If you are refinancing an existing mortgage loan, a discount may apply on the new loan policy, pursuant to 126.96.36.199 NMAC and 59A-30-6.1 NMSA.
Second or Subsequent Mortgages. If you produce an owner’s policy of title insurance, you may be entitled to a discount called the “subsequent issue” rate, on future transactions involving second or subsequent mortgages pursuant to 188.8.131.52 NMAC.
ON YOUR NEXT TRANSACTION, ASK YOUR ESCROW OFFICER TO CONFIRM THAT YOU HAVE RECEIVED ANY AND ALL DISCOUNTS TO WHICH YOU ARE ENTITLED UNDER NEW MEXICO’S TITLE INSURANCE LAW AND REGULATIONS.
[184.108.40.206 NMAC - N, 8-1-01; 220.127.116.11 NMAC - Rn, 18.104.22.168 NMAC, 8-1-08; A, 09-15-10; A, 07-01-2018)
No guidelines are available for this form at this time.