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Effective November 1, 2024 (Order 2024-8851)
R-6. Subsequent Issuance of Mortgagee Policy
1. Subsequent to Owner Policy - When a Mortgagee Policy( ies) is asked for, subsequent to the issuance of an Owner Policy which excepted to the Vendor's Lien, the premium will be one-half the Basic Rate. The lien to be guaranteed should be as initially developed, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) will be released in the quantity of the current unsettled balance of said insolvency. The Company shall be furnished such evidence as it might need validating such unsettled balance, that the indebtedness is not in default which there has been no velocity of maturity. THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies released by reason of notes being allocated to private systems in connection with a master policy covering the aggregate insolvency, including enhancements. Individual Mortgagee Policies must be provided at the Basic Rates.
2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is asked for, for any factor whatsoever, on a lien already covered by an existing Mortgagee Policy( ies), but not on a renewal or extension thereof, the new policy being in the amount of the existing unsettled balance of the indebtedness, the premium for the new policy shall be at the Basic Rate, but a credit for three-tenths (3/10) of said premium might be allowed.
3. Subsequent to Mortgagee Policy - When an insolvent insurance company is placed in permanent receivership by a court of competent jurisdiction and a Mortgagee Policy( ies) is requested on a lien currently covered by an existing Mortgagee Policy( ies) of said insolvent insurer, but not on a loan to take up, renew, extend or satisfy an existing lien, the brand-new policy being in the quantity of the existing overdue balance of the insolvency, the premium for the new policy will be at the basic rate, but a credit for one-half of said premium will be permitted, unless such credit would lower the premium to less than the minimum Basic Rate, in which case the rate shall be the minimum Basic Rate. The insured will surrender the existing Mortgagee Policy( ies) to the Company when putting the order for a brand-new Mortgagee Policy( ies). The date of Policy for the new policy( ies) will be the very same Date of Policy as the existing Mortgagee Policy( ies).
R-7. Mortgagee Policies Covering First and Subordinate Liens Issued Simultaneously
When a Mortgagee Policy is released on a First Lien, and other policy( ies) is released on Subordinate Lien( s), developed in the same deal, covering the very same land or a part thereof, the premium for the First Lien policy will be calculated on the total of the combined liens
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Basic Manual Of Title Insurance, Section III
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