Texas Insurance Code 2551.252 – Amounts Added to Reserve for Calendar Year 1997; Reductions
(a) The total charges of a domestic title insurer for title insurance policies written or assumed on or after January 1, 1997, and before January 1, 1998, are computed by adding the following, as described in the insurer’s annual statement:
(1) the direct premium written by the insurer;
(2) the escrow and settlement service fees paid directly to and collected by the insurer;
(3) other title fees and service charges paid directly to and collected by the insurer, including fees for closing protection letters; and
(4) premiums for any reinsurance assumed by the insurer, less premiums for reinsurance ceded by the insurer during that year.
(b) The amount a domestic title insurer must set aside in the statutory premium reserve for the 1997 calendar year is computed by multiplying the total charges computed under Subsection (a) by:
(1) 6-1/5 percent if the insurer had $250 million or more in direct premium written for the year 1996; or
(2) 3-1/2 percent if the insurer had less than $250 million in direct premium written for the year 1996.
Terms Used In Texas Insurance Code 2551.252
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) A domestic title insurer shall reduce additions to the statutory premium reserve set aside for title insurance policies written or assumed during the year 1997 over a 20-year period beginning in the year after the year in which the policies are written or assumed, as provided by Subsection (d), by:
(1) 26 percent of the additions in the first year following the year of addition;
(2) 20 percent of the additions in the second year following the year of addition;
(3) 10 percent of the additions in the third year following the year of addition;
(4) nine percent of the additions in the fourth year following the year of addition;
(5) five percent of the additions in the fifth and sixth years following the year of addition;
(6) three percent of the additions in the seventh, eighth, and ninth years following the year of addition;
(7) two percent of the additions in the 10th through 14th years following the year of addition; and
(8) one percent of the additions in the last six years of the 20-year period.
(d) A domestic title insurer shall make the annual reductions under Subsection (c) in increments of one-fourth of the appropriate percentage of the additions each on March 31, June 30, September 30, and December 31 of each year.