- April 07, 2006
- All Issuing Offices in Pennsylvania
- Rate Changes Approved for May 1, 2006
Recently the Pennsylvania Insurance Department approved rate changes aimed at reducing the price the consumer must pay for title insurance in a refinance situation, for the Short Form policy and the Enhanced Homeowner's Policy.
Section 5.6 of the Manual, of particular interest to the Insurance regulators, will allow a deeper discount (70% of the reissue rate) for the substitution rate if the refinance takes place within 2 years. In addition, if the refinance takes placed within the third or fourth year after the prior insurance, the discount for the substitution rate is 80% of the reissue rate.
Section 5.15 changes the additional premium from $125 to $100 for the Short Form Loan policy. Section 5.17 reduces the additional charge for the Enhanced Homeowner's Policy from 15% to 10% of the premium charged.
We have enclosed substitute manual pages to be inserted into the Rate Manual. If you prefer a whole new manual please contact me and I will be happy to send it to you.
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.