OIR Hearing: Title Insurance Rates; Premium Schedule Applicable to Truth in Lending and Other Endorsements

On Tuesday, July 24, 2007, this office attended a public hearing at the Office of Insurance Regulation (“OIR”) on Proposed Rules 690-186.003, .005 entitled Title Insurance Rates; Premium Schedule Applicable to “Truth In Lending” and Other Endorsements.  The Proposed Rules amend the Rule relating to Junior Loan Title insurance and establish its premium to be at $0.86 per $1,000.00 of liability written.

A representative from Title Insurance Fund, Inc. testified against the Proposed Rule, arguing that the rate is insufficient.  Representatives from OIR raised several points to justify the rate established.  The rates were based, in part, on reports issued by the Milliman and Cox actuarial firms.  Also, Steve Parton of OIR indicated that the lower rate is justified because junior loans are less involved, without the same guarantees as standard loans.

At the conclusion of the hearing, the OIR stated that the record will remain open for an additional 10 days for written comments.  The comments should be forwarded to Bob Prentise at OIR via mail or email.  At this time, the OIR intends to process the Rule toward final adoption at a Financial Services Commission meeting.

The above information is intended to be a brief summary of the discussion and materials at the hearing and is not intended to be a comprehensive review of the issues contained therein.  This summary should not be relied upon in making determinations for specific business decisions. 

We have included for your review a copy of the Rule and related endorsements that were distributed at the Hearing. 

Should you have any questions or comments, please feel free to contact this office.