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The Florida Statutes

The 2001 Florida Statutes

Title XXXVII
Insurance
Chapter 627
Insurance Rates And Contracts
View Entire Chapter
Section 627.7825, Florida Statutes 2001

627.7825  Alternative rate adoption.--Notwithstanding s. 627.782(1) and (7), the premium rates to be charged by title insurers in this state from July 1, 1999, through June 30, 2002, for title insurance contracts shall be as set forth in this section. The rules related to premium rates for title insurance, including endorsements, adopted by the department and in effect on April 1, 1999, that do not conflict with the provisions of this section shall remain in effect until June 30, 2002. The department shall not grant a rate deviation pursuant to s. 627.783 for the premium rates established in this section and in department rules in effect on April 1, 1999, that do not conflict with this section.

(1)  ORIGINAL TITLE INSURANCE RATES.--

(a)  For owner and leasehold title insurance:

1.  The premium for the original owner's or for leasehold insurance shall be:

Per
Thousand
Minimum
Insurer
Retention
From $0 to $100,000 of liability written$5.7530%
From $100,000 to $1 million, add$5.0030%
Over $1 million and up to $5 million, add$2.5035%
Over $5 million and up to $10 million, add$2.2540%
Over $10 million, add$2.0040%


The minimum premium for all conveyances except multiple conveyances shall be $100. The minimum premium for multiple conveyances on the same property shall be $60.

2.  In all cases, the owner's policy shall be issued for the full insurable value of the premises.

(b)  For mortgage title insurance:

1.  The premium for the original mortgage title insurance shall be:

Per
Thousand
Minimum
Insurer
Retention
From $0 to $100,000 of liability written $5.7530%
From $100,000 to $1 million, add$5.0030%
Over $1 million and up to $5 million, add$2.5035%
Over $5 million and up to $10 million, add$2.2540%
Over $10 million, add$2.0040%

The minimum premium for all conveyances except multiple conveyances shall be $100. The minimum premium for multiple conveyances on the same property shall be $60.

2.  A mortgage title insurance policy shall not be issued for an amount less than the full principal debt. A policy may, however, be issued for an amount up to 25 percent in excess of the principal debt to cover interest and foreclosure costs.

(2)  REISSUE RATES.--

(a)  The reissue premium charge for owner's, mortgage, and leasehold title insurance policies shall be:

Per Thousand
Up to $100,000 of liability written$3.30
Over $100,000 and up to $1 million, add$3.00
Over $1 million and up to $10 million, add$2.00
Over $10 million, add$1.50

The minimum premium shall be $100.

(b)  Provided a previous owner's policy was issued insuring the seller or the mortgagor in the current transaction and that both the reissuing agent and the reissuing underwriter retain for their respective files copies of the prior owner's policy or policies, the reissue premium rates in paragraph (a) shall apply to:

1.  Policies on real property which is unimproved except for roads, bridges, drainage facilities, and utilities if the current owner's title has been insured prior to the application for a new policy;

2.  Policies issued with an effective date of less than 3 years after the effective date of the policy insuring the seller or mortgagor in the current transaction; or

3.  Mortgage policies issued on refinancing of property insured by an original owner's policy which insured the title of the current mortgagor.

(c)  Any amount of new insurance, in the aggregate, in excess of the amount under the previous policy shall be computed at the original owner's or leasehold rates, as provided in subsection (1).

(3)  NEW HOME PURCHASE DISCOUNT.--Provided the seller has not leased or occupied the premises, the original premium for a policy on the first sale of residential property with a one to four family improvement that is granted a certificate of occupancy shall be discounted by the amount of premium paid for any prior loan policies insuring the lien of a mortgage executed by the seller on the premises. In the case of prior loan policies insuring the lien of a mortgage on multiple units or parcels, the discount shall be prorated by dividing the amount of the premium paid for the prior loan policies by the total number of units or parcels without regard to varying unit or parcel value. The minimum new home purchase premium shall be $200. The new home purchase discount may not be combined with any other reduction from original premium rates provided for in this section. The insurer shall reserve for unearned premiums only on the excess amount of the policy over the amount of the actual or prorated amount of the prior loan policy.

(4)  SUBSTITUTION LOANS RATES.--

(a)  When the same borrower and the same lender make a substitution loan on the same property, the title to which was insured by an insurer in connection with the previous loan, the following premium rates for substitution loans shall apply:

Age of Previous Loan Premium Rates
3 years or under30 percent of the original rates
From 3 to 4 years40 percent of the original rates
From 4 to 5 years50 percent of the original rates
From 5 to 10 years60 percent of the original rates
Over 10 years100 percent of original rates

The minimum premium for substitution loan rates shall be $100.

(b)  At the time a substitution loan is made, the unpaid principal balance of the previous loan will be considered the amount of insurance in force on which the foregoing premium rates shall be calculated. To these rates shall be added the original rates in the applicable schedules for any new insurance, including any difference between the unpaid principal balance of the previous loan and the amount of the new loan.

(c)  In the case of a substitution loan of $250,000 or more, when the same borrower and any lender make a substitution loan on the same property, the title to which was insured by an insurer in connection with the previous loan, the premium for such substitution loans shall be the rates as set forth in paragraphs (a) and (b).

History.--s. 12, ch. 99-286.