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.
[4/1/1996; 13.14.9.1 NMAC - Rn & A, 13 NMAC 14.9.1, 5/15/2000; A, 8/15/2014]
13.14.9.2 SCOPE:
This rule applies to all title insurers and all title insurance agents
conducting title insurance business in New Mexico.
[3/1/1974...11/1/1996;
13.14.9.2 NMAC - Rn, 13 NMAC 14.9.2, 5/15/2000]
13.14.9.3 STATUTORY AUTHORITY:
NMSA 1978 Sections 59A-30-4 and 59A-30-6.
[3/1/1974...11/1/1996;
13.14.9.3 NMAC - Rn, 13 NMAC 14.9.3, 5/15/2000]
13.14.9.4 DURATION:
Permanent.
[4/1/1996;
13.14.9.4 NMAC - Rn, 13 NMAC 14.9.4, 5/15/2000]
13.14.9.5 EFFECTIVE DATE:
June 16, 1986, unless a later date is cited at the end of a section.
[3/1/1974,
11/1/1996; 13.14.9.5 NMAC - Rn & A, 13 NMAC 14.9.5, 5/15/2000]
13.14.9.6 OBJECTIVE:
The purpose of this rule is to establish rates for title insurance
policies.
[11/1/1996;
13.14.9.6 NMAC - Rn & A, 13 NMAC 14.9.6, 5/15/2000]
13.14.9.7 DEFINITIONS:
See 13.14.1 NMAC.
[3/1/1974...11/1/1996;
13.14.9.7 NMAC - Rn, 13 NMAC 14.9.7, 5/15/2000]
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.
[6/16/1986; 13.14.9.8 NMAC - Rn, 13 NMAC
14.9.8.1, 5/15/2000]
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.
[6/16/1986; 13.14.9.9 NMAC - Rn, 13 NMAC
14.9.8.2, 5/15/2000]
13.14.9.10 PREMIUM RATES INCLUSIVE: The premium policy 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.
[6/16/1986; 13.14.9.10 NMAC - Rn,
13 NMAC 14.9.8.3, 5/15/2000; A, 7/1/2018]
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.
[6/16/1986; 13.14.9.11 NMAC - Rn, 13 NMAC
14.9.10, 5/15/2000; A, 9/15/2010; A, 3/1/2016]
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.
[6/16/1986; 13.14.9.12 NMAC - Rn, 13 NMAC
14.9.8.5, 5/15/2000]
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.
[6/16/1986; 13.14.9.13 NMAC - Rn, 13 NMAC
14.9.8.6, 5/15/2000; A, 3/1/2016]
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) as a full one thousand dollars ($1,000).
[6/16/1986; 13.14.9.14 NMAC - Rn, 13 NMAC
14.9.8.7, 5/15/2000]
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.
[6/16/1986; 13.14.9.15 NMAC - Rn, 13 NMAC
14.9.8.8, 5/15/2000]
13.14.9.16 ADDITIONAL CHARGES: In addition to the premiums
specified in these rate regulations, the following non-premium fees 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, of platted tracts, a
charge of fifty dollars ($50); and, (2) for each tract of unusual complexity of
search and examination, a charge of fifteen
percent 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.
[6/16/1986, 3/1/1992; 13.14.9.16
NMAC - Rn, 13 NMAC 14.9.8.9, 5/15/2000; A, 7/1/2018]
13.14.9.17 CANCELLATION
FOR NON-PAYMENT OF PREMIUM: In the event that all premium
due is not paid in full within 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 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.
[6/16/1986; 13.14.9.17 NMAC - Rn, 13 NMAC
14.9.8.10, 5/15/2000]
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 |
176 |
24,000 |
290 |
38,000 |
388 |
|
11,000 |
184 |
25,000 |
296 |
39,000 |
395 |
|
12,000 |
193 |
26,000 |
304 |
40,000 |
402 |
|
13,000 |
201 |
27,000 |
311 |
41,000 |
407 |
|
14,000 |
210 |
28,000 |
320 |
42,000 |
414 |
|
15,000 |
218 |
29,000 |
327 |
43,000 |
421 |
|
16,000 |
227 |
30,000 |
334 |
44,000 |
428 |
|
17,000 |
235 |
31,000 |
342 |
45,000 |
434 |
|
18,000 |
244 |
32,000 |
348 |
46,000 |
440 |
|
19,000 |
252 |
33,000 |
356 |
47,000 |
447 |
|
20,000 |
260 |
34,000 |
361 |
48,000 |
454 |
|
21,000 |
265 |
35,000 |
368 |
49,000 |
460 |
|
22,000 |
273 |
36,000 |
376 |
50,000 |
468 |
|
23,000 |
281 |
37,000 |
381 |
|
|
|
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 |
$5.68 |
80% |
|
$5.68 |
|
over $100 to $500 |
$4.47 |
80% |
|
$4.47 |
|
over $500 to $2,000 |
$3.50 |
80% |
|
$3.50 |
|
over $2,000 to $5,000 |
$2.82 |
75% |
|
$2.82 |
|
over $5,000 to
$10,000 |
$2.34 |
70% |
|
$2.34 |
|
over $10,000 to
$25,000 |
$2.01 |
65% |
$0.25 |
$2.26 |
|
over $25,000 to
$50,000 |
$1.76 |
60% |
$0.25 |
$2.01 |
|
over $50,000 |
$1.40 |
50% |
$0.25 |
$1.65 |
[6/16/1986...4/3/1995;
A, 5/1/1999; 13.14.9.18 NMAC - Rn, 13 NMAC 14.9.8.11 & A, 5/15/2000; A,
5/31/2000; A, 8/1/2000; A, 3/1/2002; A, 7/1/2003; A, 7/1/2004; A, 7/1/2005; A,
7/1/2006; A, 9/1/2007; A, 7/1/2008; A, 8/1/2009; A,
10/1/2012; A, 8/15/2014; A/E, 7/1/2018]
A. Commitments to
insure.
The premium for each version of a commitment to insure (or an interim
title insurance binder) is one hundred dollars ($100) for the initial six
months, and an additional one hundred dollars ($100) for each additional six
month (or portion thereof) renewal or extension. If the version of the commitment is issued to
correct an error by the issuing agent, the version shall be issued at no
charge.
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) for each pro forma policy, issued pursuant to 13.14.5.13 NMAC. If the version of the commitment
is issued to correct an error by the issuing agent, the version shall be issued
at no charge.
[6/16/1986…3/1/1989; 6/1/1997, 6/1/1998;
13.14.9.19 NMAC - Rn, 13 NMAC 14.9.9, 5/15/2000; A, 10/1/2012; A, 3/1/2016; A,
07/1/2018]
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.
[6/16/1986; 13.14.9.20 NMAC - Rn, 13 NMAC
14.9.10.1, 5/15/2000]
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.
[6/16/1986; 13.14.9.21 NMAC - Rn, 13 NMAC
14.9.10.2, 5/15/2000]
13.14.9.22 ORIGINAL
FIRST MORTGAGE SINGLE ISSUE RATES: Premiums for an original first mortgage
policy (loan policy) shall be ninety percent of the full basic premium rate
according to the schedule in effect as of the date of the policy.
[6/16/1986; 13.14.9.22 NMAC - Rn, 13 NMAC
14.9.10.3, 5/15/2000]
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 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 of the minimum basic premium according to the schedule
in effect as of the date of the policy.
[6/16/1986; 13.14.9.23 NMAC - Rn, 13 NMAC
14.9.10.4, 5/15/2000]
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 of the appropriate premium for said owner’s
policy, up to a maximum credit of one hundred dollars ($100), will be allowed.
[6/16/1986; 13.14.9.24 NMAC - Rn, 13 NMAC
14.9.10.5, 5/15/2000]
13.14.9.25 SINGLE
ISSUE GOVERNMENT CERTIFICATES AND POLICIES:
Certificates of title or United States policies will be issued to the
United States government (or one of its branches such as the United States. postal
service) at the basic premium rates according to the schedule in effect as of
the date of issuance.
[6/16/1986; 13.14.9.25 NMAC - Rn, 13 NMAC 14.9.10.6,
5/15/2000]
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 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.
[6/15/1991; 13.14.9.26 NMAC - Rn, 13 NMAC
14.9.10.7, 5/15/2000]
13.14.9.27 [RESERVED]
13.14.9.28 SINGLE ISSUE FORECLOSURE TITLE INSURANCE POLICY: The premium for a foreclosure title insurance policy shall be fifty-five percent 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 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 of the premium paid for the foreclosure title insurance policy shall be credited toward the new owner’s policy premium.
[4/3/1995; 13.14.9.28 NMAC - Rn, 13 NMAC
14.9.10.9, 5/15/2000; A, 7/1/2004; A, 09/15/2010]
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 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.
[6/1/1997; 13.14.9.29 NMAC - Rn, 13 NMAC
14.9.10.10, 5/15/2000]
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 Sections
20, 21, 23, 24 or 35 of 13.14.9 NMAC.
B. The rates for each loan policy so
simultaneously issued and naming as vestee the same insured owner will be one
hundred dollars ($100.00) 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.
[6/16/1986, 2-16-87; 13.14.9.30 NMAC - Rn, 13
NMAC 14.9.11.1, 5/15/2000; A, 7/1/2018]
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 Sections 20, 21, 23, 24 or 35 of 13.14.9 NMAC.
B. The rate for each leasehold
policy so simultaneously issued will be thirty percent 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.
[6/16/1986; 13.14.9.31 NMAC - Rn, 13 NMAC
14.9.11.2, 5/15/2000]
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
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 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.
[4/1/1996; 13.14.9.32 NMAC - Rn, 13 NMAC
14.9.11.3, 5/15/2000]
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) 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). 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.
[3/1/1989; 13.14.9.33 NMAC - Rn, 13 NMAC
14.9.11.4, 5/15/2000]
13.14.9.34 [RESERVED]
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 |
[6/16/1986...4/3/1995;
6/1/1998; 13.14.9.35 NMAC - Rn, 13 NMAC 14.9.12.1, 5/15/2000; A, 3/1/2002]
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.
[6/16/1986, 4/3/1995, 6/1/1998; 13.14.9.36 NMAC
- Rn, 13 NMAC 14.9.12.2, 5/15/2000]
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 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 of the face amount of the original
policy. In no event shall the reissue rates
be applied to allow more than one hundred percent of the face amount of the
original policy to be used cumulatively in the computation of reissue rates.
[6/16/1986; 13.14.9.37 NMAC - Rn, 13 NMAC
14.9.12.3, 5/15/2000]
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 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.
[3/1/1989; 13.14.9.38 NMAC - Rn, 13 NMAC
14.9.12.4, 5/15/2000]
13.14.9.39 SUBSTITUTION
RATE ON LOANS TO TAKE UP, RENEW, EXTEND OR SATISFY AN EXISTING INSURED LOAN:
(1) forty percent of the current basic
premium rate applies to any amount up to the amount of the previous policy
insuring the mortgage or deed of the trust being refinanced, if the new policy
is issued within three years from the date of the prior policy;
(2) fifty percent of the basic
premium rate applied to any amount up to the amount of the previous policy
insuring the mortgage or deed of trust being refinanced, if any new policy is
issued more than three years but less than five years from the date of the
prior policy;
(3) sixty percent of the basic premium
rate applied to any amount up to the amount of the previous policy insuring the
mortgage or deed of trust being refinanced, if any new policy is issued more
than five years but less than 10 years from the date of the prior policy;
(4) eighty percent of the current basic
premium rate applied to any amount up to the amount of the previous policy
insuring the mortgage or deed of trust being refinanced, if the new policy is
issued more than twenty years from the date of the prior policy; or
(5) the premium for insurance
coverage above the amount of the previous policy shall be ninety percent of the
current basic premium rate as set by rule.
In no promulgated or approved rate for a loan policy.
B. The term “same borrower” in
Section 59A-30-6.1 NMSA 1978 shall have the same meaning as “insured” as
defined in paragraph 1 (D) of the conditions set forth in NM form1.
C. The term “same property” in
Section 59A-30-6.1 NMSA 1978 shall mean the identical property or any portion
thereof. The reduction in rate pursuant to
Section 59A-30-6.1 NMSA 1978 shall not apply in any case where any additional
property not covered by the original policy or policies is included in the
policy to be issued.
D. If two or more previous loan
policies insuring different properties
are presented to the title agent or insurer for a refinance discount pursuant
to Section 59A-30-6.1 NMSA 1978, and provided that the new policy will contain
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. In no event shall the premium collected be
less than the regular minimum promulgated rate for an owner’s policy.
E. This rule, may be applied in
connection with the issuance of a series of mortgage policies issued by reason
of noted 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.
[4/3/1995; 13.14.9.39 NMAC - Rn, 13 NMAC
14.9.12.5, 5/15/2000; A, 7/1/2005; A, 8/15/2014; A, 7/1/2018]
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) 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) 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) 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 any loan policy pursuant to 13.14.7.14 NMAC. The premium for deletion of the exception shall be fifty dollars ($50.00) 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.
[6/16/1986...4/1/1994; 6/1/1997; 6/1/1998; 13.14.9.40 NMAC - Rn, 13 NMAC 14.9.13, 5/15/2000; A, 3/1/2002; A, 9/1/2007; A, 10/1/2012; A, 8/15/2014; A, 3/1/2016; A, 7/1/2018]
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, 10/1/2012; A, 3/1/2016]
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-seventy-five ($175.00) for each policy issued in an amount of $0-$1,000,000 and an additional one hundred-seventy-five ($175.00) for each $500,000 of policy amount above $1,000,000 or part thereof up to $20,000,000.
[13.14.9.42 NMAC - N, 3/1/2016;
A, 7/1/2018]
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 3/7/1974.
SCC-85-6, Insurance Department Regulation 30 - Title Insurance, filed 9/6/1985.
SCC-86-1, Insurance Department Regulation 30 - Title Insurance, filed 5/9/1986.
History of Repealed Material. [RESERVED]
Other History.
Re-promulgated a
portion of SCC-86-1, Insurance Department Regulation 30 - Title Insurance
(filed 5/9/1986) 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
10/2/1996), was renumbered, reformatted, amended and replaced by 13.14.9 NMAC,
General Rate Provisions, effective 5/15/2000, amended effective 8/15/2014.
13.14.9 NMAC, General Rate Provisions,
effective 8/15/2014, amended effective, 3/1/2016.
13.14.9 NMAC, General Rate Provisions,
effective 3/1/2016, amended effective, 7/1/2018.