The Florida Office of Insurance Regulation (OIR) announced that the collection of the new title insurance policy assessment of twenty-eight cents ($0.28) has been delayed until May 6, 2013.

You may recall last year that the OIR ordered the assessment to begin December 3, 2012, following the demise of National Title Insurance Company. The collection commencement start date was then moved to February 4, 2013. Earlier this month, the OIR indicated the collection would begin May 6, 2013.

Why the Assessment?

After National Title went into receivership in 2009, the Department of Financial Services determined that the reserves of National Title were not sufficient to pay the claims and continuing claims administration costs for title insurance policies issues by National Title. OIR then ordered an assessment of $212,478, which will be funded by the surcharge.

Specifics of Surcharge Collection

• Beginning May 6, 2013, all Florida Title Agents must collect an assessment of twenty-eight cents ($0.28) on each title insurance policy they issue.
• The surcharge must be collected on all policies with an effective date of May 6, 2013 or later.
• On simultaneous issue policies, only one twenty-eight cent ($0.28) surcharge is collected – the surcharge is not collected on the simultaneous loan policy.
• The entire surcharge is remitted to the underwriter.
• The surcharge is charged to the party paying for the title insurance, unless the parties agree otherwise.
• The surcharge is not charged on endorsements to existing policies – only on newly issued policies.

If you have any questions, please call any of Southern Title’s office, or you can reach us toll free at (866) 297-5535.

The Florida Office of Insurance Regulation (OIR) announced that the collection of the new title insurance policy assessment of twenty-eight cents ($0.28) has been delayed until May 6, 2013.

You may recall last year that the OIR ordered the assessment to begin December 3, 2012, following the demise of National Title Insurance Company. The collection commencement start date was then moved to February 4, 2013. Earlier this month, the OIR indicated the collection would begin May 6, 2013.

Why the Assessment?

After National Title went into receivership in 2009, the Department of Financial Services determined that the reserves of National Title were not sufficient to pay the claims and continuing claims administration costs for title insurance policies issues by National Title. OIR then ordered an assessment of $212,478, which will be funded by the surcharge.

Specifics of Surcharge Collection

• Beginning May 6, 2013, all Florida Title Agents must collect an assessment of twenty-eight cents ($0.28) on each title insurance policy they issue.
• The surcharge must be collected on all policies with an effective date of May 6, 2013 or later.
• On simultaneous issue policies, only one twenty-eight cent ($0.28) surcharge is collected – the surcharge is not collected on the simultaneous loan policy.
• The entire surcharge is remitted to the underwriter.
• The surcharge is charged to the party paying for the title insurance, unless the parties agree otherwise.
• The surcharge is not charged on endorsements to existing policies – only on newly issued policies.

If you have any questions, please call any of Southern Title’s office, or you can reach us toll free at (866) 297-5535.