May 21, 2020
TDI Issues Bulletin on Temporary and Limited Extension of Simultaneous Issue Credit Under R-5.F
The Texas Department of Insurance has issued a bulletin
with guidance on the use of the simultaneous issue premium during the COVID-19 pandemic.
Under the guidance issued today, TDI will not cite title agents and title insurance companies who charge the “simultaneous issuance” premium described in Rate Rule R-5.F for Loan Policies issued more than 90 days after the Owner’s Policy if the following conditions are met:
- All parties, including the title agent and title insurance company, agree to the Rate Rule R-5.F premium;
- the owner’s policy is dated between December 14, 2019, and April 2, 2020;
- the loan policy is issued no later than 60 days after the 90-day deadline in paragraph 1.a of Rate Rule R-5.F; and
- the requirements for Rate Rule R-5.F are otherwise met.
TDI provided the following explanation of the guidance issued today:
Governor Greg Abbott has issued a disaster declaration in response to the COVID-19 pandemic. The COVID-19 outbreak has impacted Texas business, and some title insurance consumers who bought an Owner’s Policy before the outbreak may not be able to get related loan funding and a Loan Policy as quickly as they planned. This delay would prevent them from receiving the 90-day simultaneous issue price allowed by Rate Rule R-5.F.
If you have questions, please email TitleExaminations@tdi.texas.gov