Statutory Title Insurance Surcharge Effective September 2, 2014 each title agent, agency (attorney or licensed title agency), or direct title operation must collect a surcharge of three dollars and twenty-eight cents ($3.28) in each transaction where a title insurance policy is to be issued. Background: In 2009, National Title Insurance Company (“National Title”) went into receivership and Department of Financial Services later determined that the reserves of National Title were insufficient to pay the claims and claims administration for title insurance policies issued by National Title. Accordingly, the Office of Insurance Regulation (“OIR”) ordered an assessment against other Florida underwriters to pay for such shortfall, which assessment was to be funded by a surcharge of twenty-eight cents ($0.28) on each title policy issued in the State of Florida. Originally, the surcharge was required to be collected starting on December 3, 2012, but OIR has extended the effective date several times. In 2012, K.E.L. Title Insurance Group, Inc. (“KEL”) went into receivership. As with National Title, KEL’s reserves were insufficient to pay the claims and claims administration for title insurance policies KEL issued. OIR ordered another assessment to be funded by another surcharge on each policy. OIR recently determined that the surcharge amount related to this shortfall is three dollars ($3.00) per policy. The surcharge is authorized by Fla. Stat. § 631.401 Fla. Stat., which statute protects the consumer and ensures that even policies issued by Florida domiciled insurers who go into receivership will continue in full force and effect.
Posted on: Thu, 28 Aug 2014 16:39:31 +0000
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