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.
Bulletin: NM2018001
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Bulletin: NM2018001
Dear Associates:
The New Mexico Office of Superintendent of Insurance has ordered the following changes effective July 1, 2018:
RATE MATTERS
1. The Basic Premium Rates is decreased by 9.5%.
Liability | Total | Liability | Total | Liability | Total | ||||
Charge | Charge: | Charge | Charge: | Charge | Charge: | ||||
Up to: |
| Up to: |
| Up to: |
| ||||
10,000 | 176 | 24,000 | 290 | 38,000 | 388 | ||||
11,000 | 184 | 25,000 | 296 | 39,000 | 395 | ||||
12,000 | 193 | 26,000 | 304 | 40,000 | 402 | ||||
13,000 | 201 | 27,000 | 311 | 41,000 | 407 | ||||
14,000 | 210 | 28,000 | 320 | 42,000 | 414 | ||||
15,000 | 218 | 29,000 | 327 | 43,000 | 421 | ||||
16,000 | 227 | 30,000 | 334 | 44,000 | 428 | ||||
17,000 | 235 | 31,000 | 342 | 45,000 | 434 | ||||
18,000 | 244 | 32,000 | 348 | 46,000 | 440 | ||||
19,000 | 252 | 33,000 | 356 | 47,000 | 447 | ||||
20,000 | 260 | 34,000 | 361 | 48,000 | 454 | ||||
21,000 | 265 | 35,000 | 368 | 49,000 | 460 | ||||
22,000 | 273 | 36,000 | 376 | 50,000 | 468 | ||||
23,000 | 281 | 37,000 | 381 |
|
| ||||
For amounts of insurance | Portion of rate (per thousand) | Agent | Additional rate per $1000 to be collected on policy amounts in excess of $10 million (solely for underwriter) | Total | |||||
(in thousands) | subject to agent commission, | retention percentage | Charged to | ||||||
| add | Consumer | |||||||
over $50 to $100 | $5.68 | 80% |
| $5.68 | |||||
over $100 to $500 | $4.47 | 80% |
| $4.47 | |||||
over $500 to $2,000 | $3.50 | 80% |
| $3.50 | |||||
over $2,000 to $5,000 | $2.82 | 75% |
| $2.82 | |||||
over $5,000 to $10,000 | $2.34 | 70% |
| $2.34 | |||||
over $10,000 to $25,000 | $2.01 | 65% | $0.25 | $2.26 | |||||
over $25,000 to $50,000 | $1.76 | 60% | $0.25 | $2.01 | |||||
over $50,000 | $1.40 | 50% | $0.25 | $1.65 | |||||
2. The following rate regulations have changed as stated below:
a. The Simultaneous Issue Loan rate shall be increased from $30 to $100 in 13.14.9.30 NMAC “Simultaneous Issue Owner’s and Mortgagee’s Policies.”
b. There shall be a new $50 endorsement charge for survey coverage on loan policy in 13.14.10.10 NMAC “survey coverage.”
c. The charge for the deletion of Standard Exception 4 shall increase from $25 to $50 in 13.14.10.9 NMAC “Mechanics’ Lien Coverage in Owners’ Policy (Period Not Expired)” and in 13.14.9.40 NMAC “Insuring Construction Loans and Deleting Standard Exception 4 in Loan Policies.”
d. The charge for NM Forms 80 and 80.1 shall increase from $65 to $125 in 13.14.10.61 NMAC “Mortgage Modification Endorsements.”
e. The charge for NM Form 80.2 shall increase from $65 base to a $125 base, plus an additional premium calculated by determining the difference between the charge for a loan policy in the amount of the current amount of insurance before the amount of insurance is increased, and the charge for a loan policy in the amount of the increased insurance utilizing the appropriate brackets in the schedule of basic premium rates in effect as of the date of the endorsement in 13.14.10.61 NMAC “Mortgage Endorsements.” The minimum combined charge for the NM form 80.2 endorsement is $175 for each endorsement issued in 13.14.10.61 NMAC “Mortgage Endorsements.”
f. The charge for NM Form 90 shall increase from $125 to $175 in 13.14.9.42 NMAC “Residential Limited Coverage Mortgage Policy.”
g. The minimum combined charge for an endorsement on a loan policy to insure the validity and priority of a lien for additional advances shall increase from $50 to $100 in 13.14.10.11 NMAC.
h. There shall be a new charge of $25 for NM form 26 Partial Coverage Endorsement in 13.14.10.64 NMAC.
NON-RATE/RULE MATTERS
13.14.8.13 INSURING AROUND ENDORSEMENT:
Has been amended to allow issuance where the insurer has otherwise determined that a lien does not pose a material risk under the policy(ies) or said lien or other adverse matter may be intentionally omitted from the commitment or policy.
13.14.9.16 ADDITIONAL CHARGES
The phrase “of platted tracts” has been deleted as it is unnecessary and potentially confusing because the premium is properly applicable to both platted and unplatted tracts of land.
13.14.9.19 NON-POLICY RATES
Has been amended to add that if a version of the pro forma policy is issued to correct an error by the issuing agent, the version shall be issued at no charge.
13.14.9.39 SUBSTITUTION RATE ON LOANS TO TAKE UP, RENEW, EXTEND OR SATISFY AN EXISTING INSURED LOAN
Has been amended to more closely track the language in N.M. Stat. Ann. § 59A-30-6.1
13.14.18.13 NM FORM 6: COMMITMENT FOR TITLE INSURANCE
Has been amended to delete the arbitration provision and the gap exception.
Please note that you should contact PropertyInfo Customer Care or your title production software vendor to get the new rate changes implemented in your system.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- None
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms:
- None