COVID-19: Simultaneous Issuance of Owner’s and Loan Policies – Rate Rule R 5.F

Home Bulletins Commissioner bulletins – 2020 B-0028-20 May 21, 2020 To:   All title insurance companies, title agents, direct operations, and escrow officers; and other relevant parties Re:   COVID-19: Simultaneous Issuance of Owner’s and Loan Policies – Rate Rule R 5.F 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. As a result, 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. If you have questions, email TitleExaminations@tdi.texas.gov . For more information, contact: Title@tdi.texas.gov Last updated: 5/21/2020