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What's the $3.28 added to the closing statement?

Sat, Jun 21, 2014 at 9:40AM

Title Insurance Policy Assessment/Surcharge – Implementation Extended

The assessment/surcharge previously scheduled to commence on June 13, 2014 has been delayed again until September 2, 2014. Effective September 2, 2014, every title insurance policy issued in Florida by an agent or office will have an added assessment/surcharge of $3.28 that must be separately charged and remitted in full to the underwriter. These funds will be aggregated for the payment of claims and administration expenses for two failed domestic underwriters that are currently in receivership, National Title Insurance Company (“National Title”) and K.E.L. Title Insurance Group, Inc. (K.E.L.”). This charge is mandated by the Florida Office of Insurance Regulation (“OIR”), which regulates the underwriters in the state of Florida.

According to the OIR, this assessment/surcharge for National Title and K.E.L. have been combined to make the impact on the consumer and the public easier.

Frequently asked questions:

  1. How long will this assessment last? This assessment will continue until further notice. It is expected it will take approximately one year to recoup the funds expended to protect the consumers from these two failed underwriters.
  2. Are attorney agents included? Yes, every agent, attorney or corporate, is required to charge this assessment beginning September 2, 2014.
  3. Who should be charged this fee on the closing statement? The assessment fee should be charged to the party contractually responsible for paying the premium for the policy.
  4. Must the charge be made on a simultaneously issued Mortgagee Policy? No, there should not be a second charge for the Mortgagee policy that is simultaneously issued. Only the party paying the Owner’s Policy should be assessed.
  5. Where should the charge be shown on the closing statement? The Assessment should be shown on a blank line in the 1100 block of the Closing Statement. The underwriter on whom the policy is written should be designated as the payee.

Title Insurance Policy Assessment/Surcharge – Implementation Extended

The assessment/surcharge previously scheduled to commence on June 13, 2014 has been delayed again until September 2, 2014. Effective September 2, 2014, every title insurance policy issued in Florida by an agent or office will have an added assessment/surcharge of $3.28 that must be separately charged and remitted in full to the underwriter. These funds will be aggregated for the payment of claims and administration expenses for two failed domestic underwriters that are currently in receivership, National Title Insurance Company (“National Title”) and K.E.L. Title Insurance Group, Inc. (K.E.L.”). This charge is mandated by the Florida Office of Insurance Regulation (“OIR”), which regulates the underwriters in the state of Florida.

According to the OIR, this assessment/surcharge for National Title and K.E.L. have been combined to make the impact on the consumer and the public easier.

Frequently asked questions:

  1. How long will this assessment last? This assessment will continue until further notice. It is expected it will take approximately one year to recoup the funds expended to protect the consumers from these two failed underwriters.
  2. Are attorney agents included? Yes, every agent, attorney or corporate, is required to charge this assessment beginning September 2, 2014.
  3. Who should be charged this fee on the closing statement? The assessment fee should be charged to the party contractually responsible for paying the premium for the policy.
  4. Must the charge be made on a simultaneously issued Mortgagee Policy? No, there should not be a second charge for the Mortgagee policy that is simultaneously issued. Only the party paying the Owner’s Policy should be assessed.
  5. Where should the charge be shown on the closing statement? The Assessment should be shown on a blank line in the 1100 block of the Closing Statement. The underwriter on whom the policy is written should be designated as the payee.

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