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Bulletin: TX2009008

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Bulletin: TX2009008

Bulletin Document
V 1
Date: December 18, 2009
To: All Texas Issuing Offices
RE: Increase in Premium for T-19 and T-19.1

Dear Associates:

As part of the ruling in the mineral case, the Commissioner adopted an increase in the minimum premium for the T-19 and the T-19.1 endorsements from $25 to $50 effective November 1, 2009.  

P-29 now reads as follows:

A. When the Restrictions, Encroachments, Minerals Endorsement (T-19) is issued on residential real property in accordance with Rule P-50, the premium shall be 5% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $50.00.

B. When the Restrictions, Encroachments, Minerals Endorsement (T-19) is issued on land which is not residential real property, in accordance with Rule P-50, the premium shall be 10% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $50.00.

C. When the Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T 19.1) is issued on residential real property in accordance with Rule P-5O, the premium shall be:

1. 10% of the Basic Rate for a single issue policy; or

2. 5% of the Basic Rate for a single issue policy if an amendment of the exception to area and boundaries is also purchased in accordance with Rate Rule R-16.

In either event, the minimum premium shall not be less than $50.00

D. When the Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) is issued on land which is not residential property, in accordance with Rule P-5O, the premium shall be:

1. 15% of the Basic Rate for a single issue policy; or

2. 10% of the Basic Rate for a single issue policy if an amendment of the exception to area and boundaries is also purchased in accordance with Rate Rule R-16.

In either event, the minimum premium shall be not less than $50.00 

What you need to do: 

The premium for both the T-19 and the T-19.1 is computed on a single issue basis.  For example, for a T-19 on residential property, the premium is based on the premium for simultaneously issued Loan Policy that would be charged if the Loan policy was issued only (no simultaneously issued Owner's Policy).  For example, in the case of a $100,000 Loan Policy issued simultaneously with a $120,000 Owner's Policy, you would compute the Loan Policy premium for a $100,000 policy or 10% of $843, being $84.30.  In this case since the premium exceeds the minimum premium, $84.30 is the amount to charge. 
 
If you have questions relating to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.    

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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.

References