3189668 - Florida Administrative Rules, Law, Code, Register

Florida Department of State and Division of Library and Information Services


Notice: 3189668
Notice of Meeting/Workshop Hearing

Department:	DEPARTMENT OF FINANCIAL SERVICES
Division:	OIR – Insurance Regulation


Overview



	The Financial Services Commission announces a public meeting to which all persons are invited.

DATE AND TIME:	December 5, 2006, 9:00 a.m., during a regular meeting of the Financial Services Commission

PLACE:	Cabinet Meeting Room, Lower Level, The Capitol, Tallahassee, Florida

Subject:	69O-186.003 Title Insurance Rates. The following are risk rate premiums to be charged by title insurers in this state for the respective types of title insurance contracts. To compute any insurance premium on a fractional thousand of insurance (except as to minimum premiums), multiply such fractional thousand by the rate per thousand applicable, considering any fraction of $100.00 as a full $100.00. (1)(a) and (b) No change. (c) For junior loan title insurance: 1. The premium for junior loan title insurance shall be: a. $0.86 per $1,000.00 of liability written; b. The minimum premium shall be $50.00; c. The minimum insurer retention shall be 30%. 2. This rate is approved for use with the following junior loan title insurance policy forms, copies of which are available on the Office’s website www.floir.com: a. ALTA Residential Limited Coverage Junior Loan Policy (10/19/96) (with Florida Modifications) and ALTA Endorsement JR 1 (10/19/96); b. ALTA Short Form Residential Limited Coverage Junior Loan Policy (10/19/96) (with Florida Modifications), and ALTA Endorsement JR 1 (10/19/96); and c. Any substantially similar product that insures the same type risk. 3. This rate does not include the $25.00 premium that shall be charged when issuing the optional ALTA Endorsement JR 2 (Revolving Credit/Variable Rate) (10/19/96) on a junior loan title insurance policy, as provided for in Florida Administrative Code Rule 69O-186.005(6)(c). 4. Eligibility for the junior loan policy shall be restricted to the following: a. The insured title is for land having 1-4 residential units; b. The junior loan must be a second or subsequent mortgage loan and must meet the definitional requirements of a “federally related mortgage loan”, as defined in the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. s. 2602, which is incorporated by reference and a copy is available from the Office; c. The junior mortgage loan amount is less than or equal to $500,000; d. No junior loan policy may be issued for an amount less than the full junior loan principal debt. (2) through (12) No change. Specific Authority 624.308(1), 626.9611, 627.782, 627.793 627.7825 FS. Law Implemented 624.307(1), 626.9541(1)(h)3.a., 627.777, 627.782, 627.7825, 627.783, 627.7831, 627.7841, 627.7845 FS. History–New 9-17-71, Amended 12-28-73, Repromulgated 12-24-74, Amended 4-12-82, 12-23-82, Formerly 4-21.03, Amended 6-25-86, 2-26-90, 7-26-90, 2-27-91, Formerly 4-21.003, Amended 2-13-95, 1-27-02, Formerly 4-186.003, Amended ________. 69O-186.005 Premium Schedule Applicable to “Truth in Lending” and Other Endorsements. (1) through (5) No change. (6)(a) and (b) No change. (c) In recognition of the increased risk in issuing optional ALTA Endorsement JR 2 (Revolving Credit/Variable Rate) (10/19/96) on a junior loan title insurance policy as provided for in paragraph 69O-186.003(1)(c), F.A.C., the premium shall be $25.00 for issuing ALTA Endorsement JR 2 (Revolving Credit/Variable Rate) (10/19/96) on any such junior loan title insurance policy issued. ALTA Endorsement JR 2 (Revolving Credit/Variable Rate) (10/19/96) is the only optional endorsement available for issue with any such junior loan title insurance policy and this endorsement shall be itemized on the closing statement furnished to the insured. Irrespective of whether the ALTA Endorsement JR 2 (Revolving Credit/Variable Rate) (10/19/96) is issued, no additional premium shall apply to the ALTA Endorsement JR 1 (10/19/96), which must accompany any junior loan title insurance policy issued. Copies of these forms are available on the Office’s website at www.floir.com. (7)(a) Both endorsements and affirmative type coverages and their applicable risk rate premium must be approved by the Office Department prior to their issuance in this state. Accordingly, endorsements and affirmative type coverages are categorized as follows: 1. through 2. No change. 3. Endorsements and/or affirmative type coverages with no specific Office Department approval required when there is no increased risk resulting to the insurer. (b)1. No change. 2. If there is a change in a current adopted endorsement and the change results in a further limitation of coverage, the endorsement may be submitted to the Office Department for approval without an amendment to these rules. (c) through (e) No change. (8) through (15) No change. (16) The following endorsements can be issued or affirmative language is permitted with no specific approval required from the Office: (a) through (h) No change. (i) Endorsements modifying the standard owner’s and mortgagee policy to convert to a leasehold policy previously approved by the Office Department. (j) No change. Specific Authority 624.308, 627.777, 627.782, 627.793 FS. Law Implemented 624.307(1), 627.777, 627.782, 697.04(1) FS. History– New 9-17-71, Repromulgated 12-24-74, Formerly 4-21.05, Amended 6-25-86, 2-26-90, 2-27-91, Formerly 4-21.005, Amended 2-13-95, Formerly 4-186.005, Amended ________.


	A copy of the agenda may be obtained by contacting: The Governor and Cabinet Website at http://www.myflorida.com/ myflorida/cabinet/mart.html. The agenda should be available approximately one week before the cabinet meeting. Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 calendar days before the workshop/meeting by contacting: Peggy Cheng at E-mail: Peggy.Cheng@ fldfs.com. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice). For more information, you may contact: Peggy Cheng at E-mail: Peggy.Cheng@fldfs.com

PRINT PUBLISH DATE:	11/17/2006 Vol. 32/46


REFERENCE MATERIALS:	No reference(s).

Under Florida law, E-mail addresses are public records. If you do not want your E-mail address released in response to a public records request, do not send electronic mail to this entity. Instead, contact this office by phone or in writing.

Overview