December 2012

Upcoming Change to Procedural Rule P-24

Procedural Rule P-24 provides guidelines for title companies to use when negotiating the portion of the title premium to be paid to another title company for: (1) furnishing title evidence and/or (2) examining title and/or (3) closing the transaction. 

Currently, the recommended payment percentages are based on whether the insured policy amount is (a) an amount that exceeds $125,000, or (b) an amount that is less than $125,000. 

However, the rule goes on to say that, "On and after January 1, 2013, the insured policy amount in sections (a) and (b) above shall be $150,000.00." Please keep this in mind when negotiating premium splits and/or when drafting "prior written agreements" pursuant to this rule.

Reminder to Submit Title Agent's Bond to Updated Mail Codes

Texas Insurance Code Section 2651.101 requires that agents submit a surety bond to cover any loss sustained by acts of fraud, theft and embezzlement in an amount that is the greater of:

(1) $10,000; or
(2) an amount equal to 10 percent of the gross premium written by the title insurance agent or direct operation in accordance with the latest statistical report to the department but not to exceed $100,000.

We would like to remind you to increase or decrease your Title Agent's Bond based on the most recently filed stat report.

TDI has assigned new mail codes and the new bond riders should be sent to:

Mailing Address:
TDI
Title Licensing Office MC 104-2T
PO Box 149104
Austin, TX 78714-9104
Overnight Mail:
TDI
Title Licensing Office MC 104-2T
333 Guadalupe
Austin, TX 78701