|
Effective July 1, 2007, the North Carolina Commissioner of Insurance approved new comprehensive title insurance rates for all companies (including Lawyers Title) in North Carolina as established by the NC Rating Bureau. Minimum Premium Rate: The minimum premium is $50.00, plus the closing protection letter charge, if applicable. New Rates: Former Rate structures are abolished with a new unified rate. In other words, residential, commercial, construction, government, etc. rates are gone. The new rate which we call the “regular” or “standard” rate is the same as the former residential rate, as follows: Up to $100,000 - $2.00 per thousand; then up to $500,000 - $1.50 per thousand; then up to $2,000,000 - $1.00 per thousand; then up to $7,000,000 - $.75 per thousand; and then over $7,000,000 - $.50 per thousand. Enhanced Residential Policy or Homeowners: For qualifying improved 1 to 4 family residences the rate will be at the standard rate plus an additional 20% of the "regular" rate. Simultaneous Issues: Owner and one or more Loan policies get favorable rates as a single premium. A second mortgage issued at the same time as the first mortgage will be free unless the aggregate of the amounts of both Deeds of Trust exceeds the amount of Owner’s Policy. First, the Owner’s Policy rate is calculated and then the first mortgage and second mortgage (example- an Equity Line Deed of Trust) amounts are added together and rate is calculated. If the aggregate rate is less than or equal to the Owner’s rate there is no additional premium. The total premium rate is based on the policy with the higher coverage. Reissue: When a policy has been issued on identical land within 15 years, the rate shall be 50% of the regular rate up to the amount of the previous policy (or the amount of the new policy amount if the lesser) and standard rates shall apply to new policy amounts in excess of previous policy. To receive the reissue discount, you must provide us either [1] copy of prior policy (or the SALTI file #) or [2] copy of HUD-1 of previous transaction showing title insurance and the amount was purchased. The discount also applies to a Subdivider/Developer/Builder on a lot/unit/tract basis. Endorsement/Service Charge: As previously done, no service charge for endorsements to residential policies; commercial policies may be subject to service charge. Service charge may be issued for commitment/policy cancellation. Closing Services Insurance (aka Closing Protection Letter): Rates remain unchanged. Notice #070626 - rhp |