Texas Department of Insurance (TDI) Adopts Order for Rate and Rule Revisions for Title Insurance – Effective September 1, 2019

The Texas Commissioner of Insurance has issued an order adjusting the basic premium rate for title insurance and amending R-5, R-8 and R-20.

Summary of Changes

Basic Premium Rate – Includes an overall rate adjustment of -4.9 percent, a starting base rate of $25,000 and three new rate tiers for policies with face values over $25, $50 and $100 million.

Refinance Rate Amendment – Amends Rate Rule R-8 to provide for a 50 percent credit within the first four years and a 25 percent credit between four and eight years.

Simultaneous Issue Discount Expansion in R-5 – Allows a simultaneous issue rate credit for 90 days on transactions $5 million and above. The premium is $100 for each loan policy under these circumstances.

Construction Credit Expansion in R-20 – An extension of the credit for developers of large construction projects from one year to two years with a simultaneous issue rate for the loan policy.

These new rates will be charged on all transactions that close (the date the papers are signed) starting on Sept. 1, 2019.

These changes are outlined in TDI’s adoption order. The revised rate chart and amended rules can be found in the following exhibits: Read TDI’s order and attached exhibits »

• Exhibit A – Basic Premium Rates; Calculation for Policies in Excess of $100,000 With Examples
• Exhibit B – (R-5) Simultaneous Issuance of Owner’s and Loan Policies
• Exhibit C – (R-8) Loan Policy on a Loan to Take Up, Renew, Extend, or Satisfy an Existing Lien(s)
• Exhibit D – (R-20) Owner’s Policy After Construction Period