Effective November 1, 2024 (Order 2024-8851)

R-6. Subsequent Issuance of Mortgagee Policy

1. Subsequent to Owner Policy - When a Mortgagee Policy( ies) is requested, subsequent to the issuance of an Owner Policy which excepted to the Vendor's Lien, the premium will be one-half the Basic Rate. The lien to be insured need to be as originally created, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) will be provided in the amount of the existing unpaid balance of stated insolvency. The Company shall be provided such proof as it might need verifying such unsettled balance, that the indebtedness is not in default and that there has been no acceleration of maturity. THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies issued by reason of notes being apportioned to individual systems in connection with a master policy covering the aggregate insolvency, including enhancements. Individual Mortgagee Policies must be provided at the Basic Rates.

2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is asked for, for any reason whatsoever, on a lien currently covered by an existing Mortgagee Policy( ies), however not on a renewal or extension thereof, the brand-new policy remaining in the quantity of the existing overdue balance of the insolvency, the premium for the brand-new policy shall be at the Basic Rate, however a credit for three-tenths (3/10) of said premium may be permitted.
3. Subsequent to Mortgagee Policy - When an insolvent insurance company is put in permanent receivership by a court of proficient jurisdiction and a Mortgagee Policy( ies) is asked for on a lien already covered by an existing Mortgagee Policy( ies) of said insolvent insurance provider, however not on a loan to use up, renew, extend or satisfy an existing lien, the new policy being in the amount of the current unsettled balance of the insolvency, the premium for the new policy shall be at the fundamental rate, but a credit for half of stated premium shall be permitted, unless such credit would lower the premium to less than the minimum Basic Rate, in which case the rate shall be the minimum Basic Rate. The insured shall surrender the existing Mortgagee Policy( ies) to the Company when putting the order for a brand-new Mortgagee Policy( ies). The date of Policy for the new policy( ies) will be the exact same Date of Policy as the existing Mortgagee Policy( ies).

R-7. Mortgagee Policies Covering First and Subordinate Liens Issued Simultaneously

When a Mortgagee Policy is provided on a First Lien, and other policy( ies) is provided on Subordinate Lien( s), produced in the same deal, covering the exact same land or a portion thereof, the premium for the First Lien policy shall be computed on the total of the combined liens; the premium for each Subordinate Lien policy will be $5.00.

R-8. Loan Policy on a Loan to Use Up, Renew, Extend or Satisfy an Existing Lien( s)

When a Loan Policy is released on a loan that totally uses up, renews, extends, or pleases several existing liens that are already guaranteed by one or more existing Loan Policies, the new Loan Policy should remain in the amount of the note of the brand-new loan. The premium for the brand-new Loan Policy is minimized by a credit. The credit is computed as follows:

1. Calculate the Basic Premium on the written benefit balance of the existing loan or the original amount of that loan, whichever is less; and
2. Multiply by the percentage listed below for the time from the existing Loan Policy date to the brand-new Loan Policy date: 1. 50% when four years or less;
2. 25% when more than four years however less than 8 years; or

The premium for the brand-new Loan Policy is the Basic Premium less the credit; however not less than the minimum Basic Premium.

The credit does not use if any residential or commercial property not covered in the existing Loan Policy( ies) is included in the brand-new Loan Policy.

When the existing Loan Policy( ies) included more than one chain of title, and the new Loan Policy likewise consists of one or more of the original chains of title, the minimum Basic Premium needs to be charged for each extra chain of title. (See Rate Rule R-9 for the definition of "additional chain.")

When two or more brand-new Loan Policies are issued on several loans to completely take up, restore, extend, or satisfy an existing lien guaranteed by a single Loan Policy, the premium for each brand-new Loan Policy, is the Basic Premium. The credit calculated above need to be applied to the premium for the largest Loan Policy. A credit must be given even if not all of the brand-new loans are insured or if only one of the new loans is guaranteed.

THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Loan Policies released by factor of notes being assigned to individual units in connection with a master policy covering the aggregate insolvency, including improvements. Except as otherwise supplied in this rule, individual Loan Policies need to be released at the Basic Rate.

R-9. Additional Chains of Title

In the occasion more than one chain of title is associated with the issuance (including determination of insurability of access) of any policy, the Company shall charge the minimum policy Basic Premium Rate for each extra chain. For function of using this guideline, adjoining parcels in one county shall be treated as one chain, provided record title to the land and record title to the access is vested in one owner at the time application is made. Each noncontiguous parcel having a different chain shall be dealt with as a different chain, except where two or more lots in the same platted subdivision, and having the same plat recording date, belong to the same owner, then such shall be treated as one chain. If the tracts depend on more than one county, there are separate chains of title in each county. No extra chain charge may be produced decision of insurability of access to land situated within a neighborhood, offered: (i) the subdivision is located in just one county, and (ii) the plat of the neighborhood has actually been lawfully authorized by a licensed governmental entity, is duly recorded, and the roadways shown thereon have been dedicated for public usage or for the use of the owners of lots found in the subdivision.

R-10. Owner's Policies - City Subdivision, Acreage Subdivisions, Industrial Tracts

Rate Rule R-10 is rescinded, effective September 1, 2013, due to obsolescence.

Effective January 3, 2014 (Order 2806)

R-11. Loan Policy Endorsements

Applicable only as supplied in Procedural Rule P-9.

Assignment of Mortgage Endorsement (Form T-3, Endorsement Instruction III): If released within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If released more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $100.00 for each additional complete or partial twelve-month period.
However, the optimal premium collected should not be more than 50% of the premium for the loan policy amount based upon the present Schedule of Basic Premium Rates
If released within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If released more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $25.00 for each additional full or partial twelve-month period.
However, the maximum premium gathered must not be more than 50% of the premium for the loan policy quantity based on the current Schedule of Basic Premium Rates.
If the land in the policy is Residential Real Residential or commercial property, the premium is $50.00.
If the land in the policy is not Residential Real Residential or commercial property, the premium is $100.00.
The premium for the Variable Rate Mortgage Endorsement (Form T-33) is $20.00.
The premium for the Variable Rate Mortgage-Negative Amortization Endorsement (Form T-33.1) is: $20.00; or
$ 0.00 if an additional premium is charged for the Loan Policy because of an increased policy quantity.
The premium for the Manufactured Housing Endorsement (Form T-31) is $20.00.
The premium for the Supplemental Coverage Manufactured Housing Unit Endorsement (Form T-31.1) is $50.00.
When released at the time the policy is released, the premium is 25.00.
When provided after the date of the policy, the premium is $50.00.
The premium is $25.00.
However, when multiple Planned Unit Development Endorsements (Form T-17) are issued simultaneously on several Loan Policies covering the very same land, the premium for the first endorsement is $25.00 and the premium for extra recommendations is $0.00.
Title Manual Main Index|Section III Index

R-12. Commitment for Title Insurance

Applicable only as provided in Rule P-18 - The Commitment for Title Insurance shall bear no premium in addition to the premium chargeable for the policy or policies released pursuant thereto, other than that this Rule R-12 shall not apply to any dedication for title insurance coverage issued pursuant to Rate Rule R-23, or Rate Rule R-25.

R-13. Mortgagee Title Policy Binder on Interim Construction Loan

1. Applicable only as supplied in Rule P-16 - A premium charge of an amount equal to the minimum policy Basic Premium Rate will be made for issuance of each Mortgagee Title Policy Binder on Interim Construction Loan. Such Binder shall be issued for a term of one year. The initial Binder may be extended for 6 (6) additional consecutive durations of six (6) months each, not to exceed thirty-six (36) months. A premium of $25.00 shall be charged for each consecutive 6 (6) month extension.
2. Upon subsequent issuance of: 1. a Mortgagee Policy on a loan to completely take up, renew, extend or please a lien currently covered by a Mortgagee Title Policy on Interim Construction Loan, or.
2. an Owner's Policy on the sale of a residential or commercial property which is encumbered by a lien covered by a Mortgagee Title Policy Binder on Interim Construction Loan and which lien against the communicated residential or commercial property is released prior to or simultaneous with the sale, the premium for the brand-new policy will be at the basic rate, however a credit for the premium paid for the Binder shall be allowed to the buyer of the Owner's Policy as follows: Fifty percent (50%) of the premium paid for the Binder (special of extensions), if the subsequent policy is released within one (1) year from the date of the original Binder.

Where more than one Policy may be issued on a portion of the residential or commercial property covered by the Binder, just one credit will be allowed, being on the first Policy issued.

This Rule will not use to any Binder provided prior to March 1, 1989, in which case no credit is enabled.

Notwithstanding the provision in Rate Rule R-1, it will be permissible to combine this guideline with Rate Rule R-5 in the calculation of the premium for a Policy. In no occasion shall the premium gathered be less than the routine minimum promulgated rate for a Mortgagee Policy.

The fifty percent (50%) credit shall not apply if the Binder covers real residential or commercial property which is being improved for enhancements other than one to four domestic systems.

Title Manual Main Index|Section III Index

R-14. Foreclosed Properties

When the owner of the residential or commercial property has gotten exact same directly through foreclosure under a mortgage guaranteed by a Mortgagee Policy, or the Secretary of Housing and Urban Development or the Administrator of Veteran's Affairs, or as their names may be changed from time to time, has obtained said residential or commercial property be reason of its guarantee or endorsement of a mortgage guaranteed by a Mortgagee Policy, and is selling same, an Owner Policy might be released on said sale, or a Mortgagee Policy may be released on a lien being retained in the deed conveying said residential or commercial property. If just an Owner Policy is issued, the charge therefore will be at the Basic Rate on the total of the consideration of stated sale. If only a Mortgagee policy is issued, the Basic Rate on the full amount of the lien shall be charged. In either case, the credit of $15.00 on the entire transaction shall be enabled. In the event an Owner Policy and a Mortgagee Policy are released at the same time on a deal as offered in Rule R-5, the simultaneous concern rate, in addition to the credit allowed by this guideline, shall use. The $15.00 credit permitted by this guideline will not apply until the releasing Company is furnished the following:

1. At the time the policy or policies are purchased, the seller will send to the Company, for its assessment and use, such evidence as is offered in the seller's files, including the Mortgagee Policy covering the lien foreclosed, revealing title vested in such seller. This title evidence must be maintained in the files of the Company for future referral in the occasion a claim develops under the indemnity contract set forth in paragraph "b" hereof.