Effective date: 1/27/2002

    The following are risk rate premiums to be charged by title insurers in this state for the respective types of title insurance contracts. To compute any insurance premium on a fractional thousand of insurance (except as to minimum premiums), multiply such fractional thousand by the rate per thousand applicable, considering any fraction of $100.00 as a full $100.00.

Terms Used In Florida Regulations 69O-186.003

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Contract: A legal written agreement that becomes binding when signed.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
    (1) Original Title Insurance Rates.
    (a) For owner and leasehold title insurance:
    1.a. 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
$5.75
30%
From $100,000 to $1 million, add
$5.00
30%
Over $1 million to and up to $5 million, add
$2.50
35%
Over $5 million and up to $10 million, add
$2.25
40%
Over $10 million, add
$2.00
40%
    b. The minimum premium for all conveyances except multiple conveyances shall be $100.
    c. 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.a. The premium for the original mortgage title insurance shall be:

Per Thousand
Minimum Insurer Retention
From $0 to $100,000 of liability written
$5.75
30%
From $100,000 to $1 million, add
$5.00
30%
Over $1 million and up to $5 million, add
$2.50
35%
Over $5 million and up to $10 million, add
$2.25
40%
Over $10 million, add
$2.00
40%
    b. The minimum premium for all conveyances except multiple conveyances shall be $100.
    c. 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)1. 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
    2. The minimum premium shall be $100.00.
    (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, 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.
    (a) Provided the seller has not leased or occupied the premises, the original premium of 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.
    (b) 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.
    (c) 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.
    (d) 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 Loan Rates. The following risk premium for substitution loans shall apply:
    (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 original loan.
Age of Original Loan
Premium Rates
3 years or under
30% of original rates
From 3 to 4 years
40% of original rates
From 4 to 5 years
50% of original rates
From 5 to 10 years
60% of original rates
Over 10 years
100% of original rates
Minimum premium
$100.00
    (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 rates shall be calculated. To these rates shall be added the regular rates in the applicable schedules for any new insurance, that is, the difference between the unpaid principal balance of the original 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).
    (5) Simultaneous Issue Rates. The risk premium for simultaneous issues shall be as follows:
    (a) When an owner’s and a mortgagee‘s policy or policies covering identical land are to be issued simultaneously the risk premiums applicable for the owner’s policy shall be the regular owner’s rate as provided for herein. The rate for the mortgage policy or policies so simultaneously issued will be a minimum $25.00 for an amount of insurance not in excess of the owner’s policy. The risk premium on the amount of the mortgage policy or policies in excess of the owner’s policy shall be figured at the regular original title insurance rates for mortgage policies.
    (b) The title must be examined to a date which includes the filing for record of both the deed to the mortgagor and the mortgage itself. Both policies must bear identical dates and the owner’s policy must show the mortgage as an exception under Schedule “B” thereof. It is not essential that the property be acquired simultaneously with the giving of the mortgage, but this rate, where applicable, has reference to the simultaneous issuance of an owner’s and mortgagee’s policy or policies.
    (c) When an owner’s and leasehold policy covering identical land are to be issued simultaneously, the risk premium applicable for the owner’s policy shall be the regular owner’s rate as provided for herein. The rate for the leasehold policy will be 30% of the rate for the owner’s policy with which it is being issued simultaneously up to the amount of said owner’s policy. The risk premium on the amount of a leasehold policy in excess of the owner’s policy will be figured at the regular rate for owner’s policies in the applicable schedule.
    (6) Contract Purchaser — Lessee Rates. If a contract purchaser, who has obtained a policy from an insurer insuring his contract and thereafter obtains a deed given in pursuance of the contract makes application for an owner’s policy and surrenders the policy, insuring his contract; or a lessee who has obtained a leasehold policy of an insurer, insuring his lease and thereafter purchases the property, makes application for an owner’s policy and surrenders such policy, the re-issue risk rate shall be:
Up to $100,000 of liability written
25% of the rates set forth in subsection (1)
Over $100,000 add
20% of the rates set forth in subsection (1)
Minimum premium shall be
$100.00
    (7) Binders and Commitments. A binder of title insurance, or a commitment to insure a title or risk, imposes certain obligations and liabilities upon a title insurer and agents with consequent benefits for an insured. Since such binders and commitments are being increasingly utilized in transactions involving title insurance, it is deemed necessary that in accordance with section 627.7831, F.S., a portion of the risk premium must be charged for such binder or commitment when it is issued, except for transactions involving residential properties. The risk premium charge for binders and commitments shall be credited to the risk premium due on the policy to be issued.
    (8) Construction Loans Secured by Revolving Notes and Mortgages. When a mortgage policy is issued to insure a mortgage securing periodic advances of the loan proceeds to finance improvements on real property, an additional risk rate premium shall be charged for the value of each new parcel of real property added to the policy’s coverage after its original issuance.
    (9) Minimum Retention of Premium by Insurer.
    (a) A title insurer shall receive and retain at least 30% of the risk premium for policies sold by agents in accordance with Minimum Insurance Retention Schedule, including risk premium for endorsements, and it shall not be decreased, directly or indirectly, by an insurer providing services to any agent for less than actual cost.
    (b) Any retention of premium by an insurer in excess of 30% shall not be decreased, directly or indirectly, by providing services to an agent for less than actual cost.
    (c) The required retention of funds must be remitted to the insurer by the agent at least monthly, and until remitted these funds are “collected funds” subject to the accountability provisions of rule 69O-186.009, F.A.C.
    (10) Effect of Amendments to Risk Premium. Any change in the risk premium due to an amendment to this rule shall not affect policies for which a binder or commitment to issue a policy has been issued prior to the effective date of the amendment.
    (11) Unlawful Rebates or Abatement of Charges.
    (a) No title insurer, title insurance agent or agency, including attorney agent, shall decrease the risk premium by an illegal rebate or abatement of charges for abstracting, examinations, or closing charges. At least actual cost must be charged for related title services in addition to the adopted risk premium.
    (b) Charges for related title services (title search, examination, and closing) shall be shown separately on the closing statement, and shall, at a minimum, show title search charges, examination fees, and closing charges. The risk premium as defined by section 627.7711(2), F.S., and as provided in section 627.780(1), F.S., shall be shown separately on the closing statement.
    (c) Any ongoing or standing offer of gifts, compensation or special services to the same person or customer on a continuing basis as an inducement to referring title insurance transactions is prohibited.
    (12) Subsections (1) through (4) of this rule shall become effective July 1, 2002. The remainder of the rule shall become effective 20 days after adoption.
Rulemaking Authority 624.308(1), 626.9611, 627.782, 627.7825 FS. Law Implemented 624.307(1), 626.9541(1)(h)3.a., 627.777, 627.782, 627.7825, 627.783, 627.7831, 627.7841, 627.7845 FS. History—New 9-17-71, Amended 12-28-73, Repromulgated 12-24-74, Amended 4-12-82, 12-23-82, Formerly 4-21.03, Amended 6-25-86, 2-26-90, 7-26-90, 2-27-91, Formerly 4-21.003, Amended 2-13-95, 1-27-02, Formerly 4-186.003.