TITLE 13             INSURANCE

CHAPTER 14     TITLE INSURANCE

PART 9                 GENERAL RATE PROVISIONS

 

13.14.9.1               ISSUING AGENCY:  Office of Superintendent of Insurance, Title Insurance Bureau.

[4-1-96; 13.14.9.1 NMAC - Rn & A, 13 NMAC 14.9.1, 5-15-00; A, 8-15-14]

 

13.14.9.2               SCOPE:  This rule applies to all title insurers and all title insurance agents conducting title insurance business in New Mexico.

[3-1-74...11-1-96; 13.14.9.2 NMAC - Rn, 13 NMAC 14.9.2, 5-15-00]

 

13.14.9.3               STATUTORY AUTHORITY:  NMSA 1978 Sections 59A-30-4 and 59A-30-6.

[3-1-74...11-1-96; 13.14.9.3 NMAC - Rn, 13 NMAC 14.9.3, 5-15-00]

 

13.14.9.4               DURATION:  Permanent.

[4-1-96; 13.14.9.4 NMAC - Rn, 13 NMAC 14.9.4, 5-15-00]

 

13.14.9.5               EFFECTIVE DATE:  June 16, 1986, unless a later date is cited at the end of a section.

[3-1-74, 11-1-96; 13.14.9.5 NMAC - Rn & A, 13 NMAC 14.9.5, 5-15-00]

 

13.14.9.6               OBJECTIVE:  The purpose of this rule is to establish rates for title insurance policies.

[11-1-96; 13.14.9.6 NMAC - Rn & A, 13 NMAC 14.9.6, 5-15-00]

 

13.14.9.7               DEFINITIONS:  See 13.14.1 NMAC.

[3-1-74...11-1-96; 13.14.9.7 NMAC - Rn, 13 NMAC 14.9.7, 5-15-00]

 

13.14.9.8               SCHEDULE OF PREMIUM RATES:  The superintendent of insurance shall establish a schedule of premium rates for original owner’s policies of title insurance.  Said premium rates, sometimes called the schedule of basic premium rates, shall apply to all policies of title insurance issued on New Mexico properties unless the same be specified or modified in other applicable rate regulations.

[6-16-86; 13.14.9.8 NMAC - Rn, 13 NMAC 14.9.8.1, 5-15-00]

 

13.14.9.9               COMBINATIONS OF CREDITS OR DISCOUNTS:  In no event shall two or more rate regulations (or separately lettered or numbered paragraphs thereof) granting credits, reductions or discounts in premiums be combined in the calculation of the premium or premiums for a single transaction, unless one original owner policy premium in the largest amount is charged; provided, however, that a simultaneous issue rate regulation may be combined with any appropriate single issue rate regulation.

[6-16-86; 13.14.9.9 NMAC - Rn, 13 NMAC 14.9.8.2, 5-15-00]

 

13.14.9.10             PREMIUM RATES INCLUSIVE:  The premium rates established by these rules include all premiums for title insurance, examination of the title or titles to be insured, determining that each insured estate has been created, conveyed or modified as shown in the policy, and determining what exceptions, if any, to insert in or delete from the policies to be issued as provided in these rules.

[6-16-86; 13.14.9.10 NMAC - Rn, 13 NMAC 14.9.8.3, 5-15-00]

 

13.14.9.11             PAYMENTS OF PREMIUM TO OTHERS:  No portion, split or percentage of any premium shall be paid either directly or indirectly to any person, firm or organization for title insurance, title examination, or determining status of title as set forth above, except a division of premium between an insurer admitted to do title insurance business in New Mexico and its licensed New Mexico agent pursuant to their agency agreement, or between licensed New Mexico agents (or companies admitted or licensed in New Mexico who do not have agency agreements in a county where some of the property is located) who are cooperating to close a transaction involving New Mexico property situated in more than one county to be insured in a single policy when each licensed agent or admitted company is rendering part of the services included in the premiums as set forth in 13.14.9.10 NMAC.  Any agent which has cancelled its agency agreement or had its agency agreement cancelled by an underwriter may prepare endorsements to existing policies then in force at the time of cancellation upon request by the insured and approval by the underwriter.  Said endorsements shall be signed by an officer of the underwriter.  The premium for such endorsement shall be collected by the cancelled agent and divided according to the controlling promulgated rates at the time of issuance of said endorsement(s). The payment or receipt of referral fees by or between licensed agents and/or admitted companies is prohibited.

[6-16-86; 13.14.9.11 NMAC - Rn, 13 NMAC 14.9.10, 5-15-00; A, 09-15-10; A, 3-1-16]

 

13.14.9.12             REBATES AND UNAUTHORIZED DISCOUNTS:  No person or company shall charge for a policy, binder or commitment in one transaction and withhold issuance of said policy, binder or commitment, nor shall any person or company charge a premium for a policy, binder or commitment in one transaction and apply the charged premium in a subsequent transaction unless the same be specifically authorized by these rules.  No person or company shall issue a binder or commitment for which a premium is prescribed, without making a full charge therefor nor shall such premium, or any part thereof, be applied toward the premium for any policy.  No person or company shall issue a policy, for which a premium is prescribed, without making full charge therefor.

[6-16-86; 13.14.9.12 NMAC - Rn, 13 NMAC 14.9.8.5, 5-15-00]

 

13.14.9.13             ROUNDING TO THE NEAREST DOLLAR:  All premiums charged for title insurance policies, endorsements, binders or commitments shall be rounded to the nearest dollar after all computations necessary have been performed.  Fifty cents or more shall be rounded up; forty-nine cents or less shall be rounded down.

[6-16-86; 13.14.9.13 NMAC - Rn, 13 NMAC 14.9.8.6, 5-15-00; A, 3-1-16]

 

13.14.9.14             FRACTIONAL THOUSAND DOLLARS OF LIABILITY:  To compute any charge on a fractional thousand dollars of liability, consider any fraction of one thousand dollars ($1,000.00) as a full one thousand dollars ($1,000.00).

[6-16-86; 13.14.9.14 NMAC - Rn, 13 NMAC 14.9.8.7, 5-15-00]

 

13.14.9.15             NON-DISCRIMINATION IN AUTHORIZED DISCOUNTS:  The discounts authorized in these rules are the only discounts allowed and shall be offered on a non-discriminatory basis for like risks and like insureds.

[6-16-86; 13.14.9.15 NMAC - Rn, 13 NMAC 14.9.8.8, 5-15-00]

 

13.14.9.16             ADDITIONAL CHARGES:  In addition to the other premiums specified in these rate regulations, the following shall be charged whenever the search or examination conducted for the issuance of the policy involves either an extra chain of title or other unusual complexity (as those terms are defined in Subsection A of 13.14.1.11 NMAC and Subsection A of 13.14.1.27 NMAC): (1) for each additional chain of title, the sum of fifty dollars ($50.00); and, (2) for each unplatted tract of unusual complexity fifteen percent (15%) of the full basic premium rate on each such tract.  If the separate values for each tract are not apportioned in the policy, their values for the purposes of this regulation shall be in the same proportions as their areas bear to the entire area insured.

[6-16-86, 3-1-92; 13.14.9.16 NMAC - Rn, 13 NMAC 14.9.8.9, 5-15-00]

 

13.14.9.17             CANCELLATION FOR NON-PAYMENT OF PREMIUM:  In the event that all premium due is not paid in full within fifteen (15) banking days of the issuance of any policy or endorsement, the underwriter shall cancel the said policy or endorsement; said cancellations shall be made upon written notice to the insured by certified mail, return receipt requested, to the last known address, and shall be effective not less than ten (10) days after mailing said notice to the insured.  Agents shall promptly notify their underwriter(s) of the non-receipt of premiums within the period specified herein.

[6-16-86; 13.14.9.17 NMAC - Rn, 13 NMAC 14.9.8.10, 5-15-00]

 

13.14.9.18             PREMIUM RATES FOR ORIGINAL OWNER’S POLICIES:  The following schedule of premium rates for original owner’s policies shall be in effect from the effective date of this rate rule until modified by the superintendent:

 

Liability

Total

Liability

Total

Liability

Total

Charge

Charge:

Charge

Charge:

Charge

Charge:

Up to:

 

Up to:

 

Up to:

 

10,000

195

24,000

320

38,000

429

11,000

203

25,000

327

39,000

436

12,000

213

26,000

336

40,000

444

13,000

222

27,000

344

41,000

450

14,000

232

28,000

354

42,000

457

15,000

241

29,000

361

43,000

465

16,000

251

30,000

369

44,000

473

17,000

260

31,000

378

45,000

480

18,000

270

32,000

384

46,000

486

19,000

278

33,000

393

47,000

494

20,000

287

34,000

399

48,000

502

21,000

293

35,000

407

49,000

508

22,000

302

36,000

415

50,000

517

23,000

311

37,000

421

 

 

 

For amounts of insurance

(in thousands)

Portion of rate (per thousand)

subject to agent commission,

add

Agent

retention percentage

 

Additional rate per $1000 to be collected on policy amounts in excess of $10 million (solely for underwriter)

Total

Charged to

Consumer

over $50 to $100

$6.28

80%

 

$6.28

over $100 to $500

$4.94

80%

 

$4.94

over $500 to $2,000

$3.87

80%

 

$3.87

over $2,000 to $5,000

$3.12

75%

 

$3.12

over $5,000 to $10,000

$2.59

70%

 

$2.59

over $10,000 to $25,000

$2.22

65%

$0.25

$2.47

over $25,000 to $50,000

$1.94

60%

$0.25

$2.19

over $50,000

$1.55

50%

$0.25

$1.80

[6-16-86...4-3-95; A, 5-1-99; 13.14.9.18 NMAC - Rn, 13 NMAC 14.9.8.11 & A, 5-15-00; A, 5-31-00; A, 8-1-00; A, 3-1-02; A, 7-1-03; A, 7-1-04; A, 7-1-05; A, 7-1-06; A, 9-1-07; A, 7-1-08; A, 8-1-09; A, 10-1-12; A, 8-15-14]

 

13.14.9.19             NON-POLICY RATES:

                A.            Commitments to insure.  The premium for any commitment to insure (or an interim title insurance binder) is one hundred dollars ($100.00) for the initial six months, and an additional one hundred dollars ($100.00) for each additional six month (or portion thereof) renewal or extension.

                B.            Cancellation fee.  If the transaction fails to close and no policy is issued by the company issuing its commitment (or binder), the company may charge a cancellation fee that it determines reasonable and appropriate considering the nature and extent of the services rendered by it.

                C.            Pro Forma Policies.  The premium for the issuance of any form of owner’s or loan pro forma policy is one hundred dollars ($100.00) for each pro forma policy, including all revisions thereto, issued pursuant to 13.14.5.13 NMAC.

[6-16-86…3-1-89; 6-1-97, 6-1-98; 13.14.9.19 NMAC - Rn, 13 NMAC 14.9.9, 5-15-00; A, 10-1-12; A, 3-1-16]

 

3.14.9.20               ORIGINAL OWNER’S POLICY SINGLE ISSUE RATES:  Original owner’s policies issued not simultaneously with another policy or policies and not as a reissue of an owner’s policy, shall be at the full basic premium rate according to the schedule in effect as of the date of the policy.

[6-16-86; 13.14.9.20 NMAC - Rn, 13 NMAC 14.9.10.1, 5-15-00]

 

13.14.9.21             ORIGINAL LEASEHOLD POLICY SINGLE ISSUE RATES:  Original leasehold policies issued not simultaneously with another policy or policies and not as a reissue of a leasehold policy, shall be at the full basic premium rate according to the schedule in effect as of the date of the policy.  Original leasehold policies which are reissues of original owner’s policies (i.e. a sale and leaseback) shall qualify for the reissue rates specified in 13.14.6.18 NMAC.

[6-16-86; 13.14.9.21 NMAC - Rn, 13 NMAC 14.9.10.2, 5-15-00]

 

13.14.9.22             ORIGINAL FIRST MORTGAGE SINGLE ISSUE RATES:  Premiums for an original first mortgage policy (loan policy) shall be ninety percent (90%) of the full basic premium rate according to the schedule in effect as of the date of the policy.

[6-16-86; 13.14.9.22 NMAC - Rn, 13 NMAC 14.9.10.3, 5-15-00]

 

13.14.9.23             SUBDIVIDERS OR NEW CONSTRUCTION BULK SINGLE ISSUE RATES:  Any person, firm or organization qualified pursuant to 13.14.6.20 NMAC shall receive a twenty-five percent (25%) discount from the full basic premium rates according to the schedule in effect as of the date of each policy on all owner’s policies issued by the same company on the lots or tracts which qualify pursuant to 13.14.6.20 NMAC; provided, however, that notwithstanding the discount, no owner’s policy shall be issued under this regulation for a premium less than ninety percent (90%) of the minimum basic premium according to the schedule in effect as of the date of the policy.

[6-16-86; 13.14.9.23 NMAC - Rn, 13 NMAC 14.9.10.4, 5-15-00]

 

13.14.9.24             ABSTRACT RETIREMENT CREDIT:  When the applicant for an owner’s policy transfers, at the time of application for the policy, to the agent or insurer ownership of the abstract of title covering all or part of the premises to be insured, a credit of twenty-five percent (25%) of the appropriate premium for said owner’s policy, up to a maximum credit of one hundred dollars ($100.00), will be allowed.

[6-16-86; 13.14.9.24 NMAC - Rn, 13 NMAC 14.9.10.5, 5-15-00]

 

13.14.9.25             SINGLE ISSUE GOVERNMENT CERTIFICATES AND POLICIES:  Certificates of title or U.S. policies will be issued to the United States Government (or one of its branches such as the U.S. Postal Service) at the basic premium rates according to the schedule in effect as of the date of issuance.

[6-16-86; 13.14.9.25 NMAC - Rn, 13 NMAC 14.9.10.6, 5-15-00]

 

13.14.9.26             REPLACEMENT POLICY RATE:  When an authorized insurer is placed in permanent or temporary receivership for purpose of liquidation with a finding of insolvency by a court of competent jurisdiction (insolvent insurer), and a replacement owner’s or mortgagee’s title insurance policy is issued pursuant to 13.14.6.22 NMAC or 13.14.7.20 NMAC, the premium shall be thirty-five percent (35%) of the full basic premium rate according to the rate schedule in effect as of the date of issuance of the replacement policy.  The replacement policy may be issued through either a licensed title agent or through an authorized insurer directly.  If a licensed title insurance agent issues the title insurance policy, the agent’s division of premium shall be computed in accordance with 13.14.3.11 NMAC.  If an authorized insurer issues the policy directly, said insurer shall retain the full premium.

[6-15-91; 13.14.9.26 NMAC - Rn, 13 NMAC 14.9.10.7, 5-15-00]

 

13.14.9.27             [RESERVED]

[4-1-93; 13.14.9.27 NMAC - Rn, 13 NMAC 14.9.10.8, 5-15-00; Repealed, 7-1-05]

 

13.14.9.28             SINGLE ISSUE FORECLOSURE TITLE INSURANCE POLICY:  The premium for a foreclosure title insurance policy shall be fifty-five percent (55%) of the full basic premium rate according to the schedule in effect as of the date of the policy.  If an owner’s policy is issued following completion of the foreclosure, the owner’s policy shall qualify for a re-issue rate of fifty-five percent (55%) of the full basic premium rate.  All liability insured above this amount of the foreclosure title insurance policy for a new owner’s policy must be computed at the basic premium rates in the applicable bracket.  If the litigation or non-judicial foreclosure is terminated by the security instrument being reinstated, and a new owner’s policy is issued to a new purchaser within one year of the date of the foreclosure title insurance policy, fifty percent (50%) of the premium paid for the foreclosure title insurance policy shall be credited toward the new owner’s policy premium.

[4-3-95; 13.14.9.28 NMAC - Rn, 13 NMAC 14.9.10.9, 5-15-00; A, 7-1-04; A, 09-15-10]

 

13.14.9.29             SINGLE ISSUE RESIDENTIAL LIMITED COVERAGE JUNIOR LOAN POLICY:  The premium for a residential limited coverage junior loan policy shall be forty (40%) percent of the full basic premium rate according to the schedule in effect as of the date of the policy, but shall not be less than a minimum of $65.00.

[6-1-97; 13.14.9.29 NMAC - Rn, 13 NMAC 14.9.10.10, 5-15-00]

 

13.14.9.30             SIMULTANEOUS ISSUE OWNER’S AND MORTGAGEE POLICIES:

                A.            When issuing an owner’s and mortgagee (loan) policy or policies (or leasehold owner’s and leasehold mortgagee policies) wherein the mortgagee policy or policies insure part or all of the land insured in the owner's policy the rate for the owner’s policy bearing the same date as and specifically excepting to the liens insured in each mortgagee policy issued pursuant to this regulation shall be the applicable owner’s rate determined by 13.14.9.20, 13.14.9.21, 13.14.9.23, 13.14.9.24, or 13.14.9.35 NMAC.

                B.            The rates for each loan policy so simultaneously issued and naming as vestee the same insured owner will be thirty dollars ($30.00) for the aggregate amount of insurance not in excess of the owner’s policy.  The rate on the amount of each mortgagee policy exceeding the owner’s policy in the aggregate is the difference between the original first mortgage rate for the owner’s policy amount and the original first mortgage rate for the owner’s policy plus the amount of liability by which the mortgagee policy exceeds the owner’s policy according to the schedule in effect as of the date of the policies.

[6-16-86, 2-16-87; 13.14.9.30 NMAC - Rn, 13 NMAC 14.9.11.1, 5-15-00]

 

13.14.9.31             SIMULTANEOUS ISSUE OWNER’S AND LEASEHOLD POLICIES:

                A.            When an owner’s and leasehold policy or policies wherein the leasehold policy or policies issued insure part or all of the land insured in the owner’s policy bearing the same date as and specifically excepting to the leases creating the estates insured in each leasehold policy issued pursuant to this regulation, the rate for the owner’s policy shall be determined by 13.14.9.20, 13.14.9.21, 13.14.9.23, 13.14.9.24, or 13.14.9.35 NMAC.

                B.            The rate for each leasehold policy so simultaneously issued will be thirty percent (30%) of the rate for the owner’s policy up to the amount of the owner’s policy.  The rate on the aggregate amount of any leasehold policy exceeding the owner’s policy is the difference between the basic premium rates according to the schedule in effect as of the date of the policies in the same manner as excess is computed in 13.14.9.30 NMAC.

[6-16-86; 13.14.9.31 NMAC - Rn, 13 NMAC 14.9.11.2, 5-15-00]

 

13.14.9.32             SIMULTANEOUS ISSUE MULTIPLE OWNER’S POLICIES ON SAME LAND:  When two or more owner’s policies (including leasehold owner’s policies) covering the same land are:

                A.            issued simultaneously by the same title insurer and title agent to different insureds (i.e., a buyer and a seller who was not furnished an owner’s policy when he purchased or a fee estate and easement on the fee), the applicable owner’s rate shall apply to the policy in the largest amount and the rate on the other policies shall be thirty percent (30%) of the basic premium rate according to the schedule in effect as of the date of the policies; or

                B.            issued to different insureds where a policy is issued in one transaction and one or more policies are issued within 30 days in a subsequent transaction or transactions, provided, (a) each transaction covers identical land; (b) all conveyances relating to the land to be insured in the subsequent transaction(s) are recorded no more than 30 days after the conveyances of the first transaction are recorded and all policies are issued by the same title insurer and title agent and no later than 30 days after the first transaction; and (c) an owner’s policy is issued insuring the interest of each and every owner created by the subsequent transaction(s), the premium for the first policy shall be the applicable owner’s rate in effect as of the date of the first policy and the premium for each subsequently issued policy shall be thirty percent (30%) of the full basic premium rate according to the schedule in effect as of the date of the subsequently issued policy or policies.  If any subsequently issued policy exceeds the amount of insurance written in the first policy, the premium for the difference must be computed at the basic premium rates by brackets.

[4-1-96; 13.14.9.32 NMAC - Rn, 13 NMAC 14.9.11.3, 5-15-00]

 

13.14.9.33             SIMULTANEOUS ISSUE DUPLICATE ORIGINAL POLICIES:  When an insured requests the issuance of a duplicate original policy, the premium therefore shall be twenty-five dollars ($25.00) if such duplicate original policy is issued simultaneously with the original policy.  If issued at any time other than simultaneously, the premium for such duplicate original policy shall be sixty-five dollars ($65.00).  Each insurer shall establish its written underwriting standards governing the issuance of duplicate original policies and establishing the language to be placed on such policy to clearly identify the policy as a duplicate original.

[3-1-89; 13.14.9.33 NMAC - Rn, 13 NMAC 14.9.11.4, 5-15-00]

 

13.14.9.34             [RESERVED]

[4-3-95; 13.14.9.34 NMAC - Rn, 13 NMAC 14.9.11.5, 5-15-00; Repealed, 7-1-05]

 

13.14.9.35             REISSUE OWNER’S OR LEASEHOLD RATES:  The applicable discount to be used when computing a reissue owner’s, leasehold, or contract purchaser’s policy shall be determined using the schedule below.  If more insurance is desired or required under the reissue policy than was written in the original policy, the difference must be computed at the basic premium rates in the applicable bracket or brackets in the same manner as excess liability is computed in 13.14.9.30 NMAC.  See 13.14.6.18 NMAC for qualifications for reissue rates on owner’s and leasehold policies.  If two or more previous policies insuring different properties are presented to the title agent or insurer for a reissue discount on the purchase of a policy containing the same properties as shown in said previous policies the discount will be computed as follows: Title agent or insurer shall base the discount on the date of issue of the oldest previous policy and upon a liability amount equal to the sum of the liability amounts of the previous policies.  If the previous policies contain more or less property than is insured under the previous policies, 13.14.9.37 NMAC applies.  In no event shall the premium collected be less than the regular minimum promulgated rate for an owner’s policy.

 

AGE IN YEARS OF PREVIOUS

OWNER’S POLICY

PERCENTAGE OF BASIC PREMIUM RATES

3 years or more

90

2 years or more but less than 3 years

85

more than 1 year but less than 2 years

80

1 year or less

75

[6-16-86...4-3-95; 6-1-98; 13.14.9.35 NMAC - Rn, 13 NMAC 14.9.12.1, 5-15-00; A, 3-1-02]

 

13.14.9.36             SECOND MORTGAGES OR SUBSEQUENT ISSUES:  A loan policy insuring any mortgage granted by the owner of property subsequent to the original date of his owner’s policy insuring said property, shall be issued at sixty percent (60%) of the full basic premium rates according to the schedule as of the date of the subsequent loan policy, up to the face amount of the owner’s policy less the face amount of all liens of record not released upon issuance of the subsequent loan policy.  All liability insured above that amount shall be at ninety percent (90%) of the current basic premium rates by brackets.  In no event shall the premium collected be less than the regular minimum promulgated rate for an owner’s policy.

[6-16-86, 4-3-95, 6-1-98; 13.14.9.36 NMAC - Rn, 13 NMAC 14.9.12.2, 5-15-00]

 

13.14.9.37             COMPUTATION OF RATES WHEN INSURED PROPERTY IS NOT IDENTICAL:  When only a portion of the land previously insured is being insured by a reissue owner’s or reissue leasehold owner’s policy or by a subsequent issue loan policy, or when the land previously insured is only a portion of the land being insured by a reissue owner’s or reissue leasehold owner’s policy or by a subsequent issue loan policy, the rates provided in 13.14.9.35 NMAC and 13.14.9.36 NMAC shall be adjusted in proportion to the areas insured in the original policy and the current policy.  For example, if the original policy insured one acre and the current policy insures three acres, the reissue rates will apply to one-third (1/3) of the current value up to the face amount of the original policy; but, if the situation is reversed, the reissue rates will only apply up to one-third (1/3) of the face amount of the original policy.  In no event shall the reissue rates be applied to allow more than one hundred percent (100%) of the face amount of the original policy to be used cumulatively in the computation of reissue rates.

[6-16-86; 13.14.9.37 NMAC - Rn, 13 NMAC 14.9.12.3, 5-15-00]

 

13.14.9.38             COMPUTATION OF RATES UPON CONVERSION OF LEASEHOLD OWNER’S POLICY TO STANDARD OWNER’S POLICY:  When a leasehold owner’s policy is converted to a standard owner’s policy pursuant to 13.14.6.9 NMAC, the premium for such conversion shall be fifty percent (50%) of the basic premium rate in effect at the time of such conversion, up to the face amount of the leasehold owner’s policy.  If more insurance is desired or required under the standard owner’s policy than was written in the leasehold owner’s policy, the difference must be computed at the basic premium rates in the applicable bracket or brackets in the same manner as excess liability is computed in 13.14.9.30 NMAC.

[3-1-89; 13.14.9.38 NMAC - Rn, 13 NMAC 14.9.12.4, 5-15-00]

 

13.14.9.39             SUBSTITUTION RATE ON LOANS TO TAKE UP, RENEW, EXTEND OR SATISFY AN EXISTING INSURED LOAN:

                A.            On a mortgagee policy issued on a first mortgage loan to fully take up, renew, extend or satisfy an outstanding loan with a remaining balance already covered by a mortgagee policy, the new policy being in the amount of the new mortgage showing title vested in the same borrower and covering the same property, the premium for the new policy shall be as follows:

                                (1)           40% of the current basic premium rate for the new policy amount but not to exceed the initial principal amount of any original indebtedness as shown on the recorded prior mortgage if renewed within three (3) years from the date of the original indebtedness;

                                (2)           50% of the current basic premium rate for the new policy amount but not to exceed the initial principal amount of any original indebtedness as shown on the recorded prior mortgage if renewed more than three (3) years but less than five (5) years from the date of the original indebtedness;

                                (3)           60% of the current basic premium rate for the new policy amount but not to exceed the initial principal amount of any original indebtedness as shown on the recorded prior mortgage if renewed more than five (5) years but less than ten (10) years from the date of the original indebtedness;

                                (4)           80% of the current basic premium rate for the new policy amount not to exceed the initial principal amount of any original indebtedness as shown on the recorded prior mortgage if renewed more than ten (10) years but less than twenty (20) years from the date of the original indebtedness; and

                                (5)           After the lapse of twenty (20) years from the date of original indebtedness, the applicable rate for original first mortgages shall apply.

                B.            The reduction in rate as herein prescribed shall not apply in any case where any additional property not covered by the original policy is included in the policy to be issued.

                C.            The premium for all liability above the initial principal amount of any original indebtedness as shown on the recorded prior mortgage shall be ninety percent (90%) of the current basic premium rates by brackets.  In no event shall the premium collected be less than the regular minimum promulgated rate for a mortgagee policy.

                D.            This rule may not be applied in connection with the issuance of a series of mortgagee policies issued by reason of notes being apportioned to individual units in connection with a master policy covering the aggregate indebtedness, including improvements.  Individual mortgagee policies must be issued at the original first mortgage rate.

 [4-3-95; 13.14.9.39 NMAC - Rn, 13 NMAC 14.9.12.5, 5-15-00; A, 7-1-05; A, 8-15-14]

 

13.14.9.40             INSURING CONSTRUCTION LOANS AND DELETING STANDARD EXCEPTION 4 IN LOAN POLICIES:

                A.            Loan policy with two-year claims made limitation.  A loan policy may be issued to insure a construction loan mortgage for a premium of thirty dollars ($30.00) plus one dollar ($1.00) per thousand calculated upon the face amount of the construction mortgage if the loan policy contains the following two-year claims made limitation:  “Notwithstanding any other provision of this policy, the company shall be liable only for such loss or damage insured against by this policy which is actually sustained by the insured and reported to the company as provided in the conditions and stipulations on or before two years after the recording of the mortgage described in schedule A.  (Upon payment to the company of the required full loan policy premium prior to the expiration of said policy, the term limitation may be deleted from this policy).”

                B.            Extension endorsement rates.  A construction loan policy or a loan policy containing the two-year claims made limitations pursuant to Subsection A of 13.14.9.40 NMAC may be extended beyond its initial two-year term pursuant to 13.14.7.18 NMAC for an additional premium of twenty-five dollars ($25.00) per six-month endorsement.

                C.            No subsequent credit on substitution loan.  The issuance of a construction loan policy, or a standard loan policy with a two-year claims made limitation, may not be used as the basis for claiming a credit or discount on a refinanced property premium pursuant to Section 59A-30-6.1, NMSA 1978; a subsequent issue loan pursuant to 13.14.9.36 NMAC: or a substitution issue loan pursuant to 13.14.9.39 NMAC.

                D.            Endorsement “A” rates.  An “A” endorsement may be issued at the same time and attached to a construction loan policy pursuant to 13.14.7.14 NMAC for an additional extra hazard risk premium of five dollars ($5.00) per thousand of the face amount of the policy.  At the time of each subsequent disbursement and upon a date down of the title having been made to the date thereof, an additional endorsement “A” may be issued pursuant to 13.14.7.17 NMAC at an additional premium of twenty-five dollars ($25.00) per endorsement.

                E.            Mechanics’ and materialmen’s lien coverage in a loan policy.  The standard exception numbered 4 in 13.14.5.9 NMAC may be deleted from [a] any loan policy pursuant to 13.14.7.14 NMAC.  The premium for deletion of the exception shall be twenty-five dollars ($25.00) when the insurer’s underwriting requirements for evidence of priority have been met or five dollars ($5.00) per thousand of the face amount of the policy if said requirements have not been met as provided in 13.14.7.14 NMAC.

[6-16-86...4-1-94; 6-1-97; 6-1-98; 13.14.9.40 NMAC - Rn, 13 NMAC 14.9.13, 5-15-00; A, 3-1-02; A, 9-1-07; A, 10-1-12; A, 8-15-14; A, 3-1-16]

 

13.14.9.41             SINGLE POLICY MULTIPLE COUNTIES:  In the event a proposed insured requests that a single policy be issued insuring multiple New Mexico properties that may be located in more than one county, the amount of insurance shall be allocated to each county based upon a supported amount as provided in writing by the proposed insured.  The premium shall be calculated as if a policy was being issued separately in each county and the aggregated gross premiums shall be combined to determine the gross premium for the single policy.  A New Mexico licensed agent (“agent”) or admitted company that maintains an agent or direct operation in one of the counties in which the property is located (“direct operation”) (collectively “issuing company”) must issue the policy and disburse, or direct the payee to disburse, the gross premium attributable to each county to the agent or direct operation in such county for such policy to be remitted to the insurer in accordance with the division of premium rule in affect at the time of issuance.  The policy schedules applicable to the land located in each county shall be countersigned by the agent or direct operation and provided to the issuing company.  The issuing company shall provide each agent or direct operation with a complete copy of the final policy which shall be maintained in accordance with underwriter and regulations requirements.  Each agent or direct operation shall report the policy utilizing the combined policy number but only the gross premium it received attributable to the property within its county shall be reported.  Issuance of a single policy shall not be used when the transaction involves property outside of New Mexico.  This rule shall not be interpreted to allow title insurance underwriters to issue what is commonly referred to as home office issued policies.

[13.14.9.41 NMAC - N, 10-1-12; A, 3-1-16]

 

13.14.9.42             RESIDENTIAL LIMITED COVERAGE MORTGAGE MODIFICATION POLICY:  When a residential limited coverage mortgage modification policy (NM form 90) is issued, the premium shall be one-hundred twenty-five dollars ($125.00) for each policy issued in an amount of $0-$1,000,000.00 and an additional one hundred twenty-five dollars ($125.00) for each $500,000.00 of policy amount above $1,000,000.00 or part thereof up to $20,000,000.00.

[13.14.9.42 NMAC - N, 3-1-16]

 

HISTORY OF 13.14.9 NMAC:

Pre-NMAC History.

ID 74-1, Article 10, Chapter 58, Rule 2, Regulations for Filing Title Insurance Forms and Rates, filed 3-7-74.

SCC-85-6, Insurance Department Regulation 30 - Title Insurance, filed 9-6-85.

SCC-86-1, Insurance Department Regulation 30 - Title Insurance, filed 5-9-86.

 

History of Repealed Material.  [RESERVED]

 

Other History.

Re-promulgated a portion of SCC-86-1, Insurance Department Regulation 30 - Title Insurance (filed 5-9-86) and renumbered, reformatted and replaced as 13 NMAC 14.9, General Rate Provisions, effective 11-01-1996.

13 NMAC 14.9, General Rate Provisions (filed 10-2-96), was renumbered, reformatted, amended and replaced by 13.14.9 NMAC, General Rate Provisions, effective 5-15-2000, amended effective 8-15-14.

13.14.9 NMAC, General Rate Provisions, effective 8-15-14, amended effective, 3-1-16.