Monday, April 18, 2011

Top 10 Questions from Title Source Clients

We receive all kinds of questions from Title Source clients. You know the saying, “if one person in the room has a question, chances are, someone else is wondering the same thing.” We picked the top 10 most frequently asked questions we’re delivering answers over the next 10 days, so be sure to check back each day! Let’s get started:

Q: Why do title premiums differ so much from state to state?

A: Title Insurance is regulated on a state level. There are three kinds of regulation in title insurance pricing: promulgated, filed and bid. Promulgated states include Texas, Florida and New Mexico. In these states, the insurance commission sets the rates and insurers cannot deviate from them by law.

Filed states, which include Michigan, are states that allow the insurer to file their rates with the commission and once these rates are approved the insurer cannot deviate from them. The difference is that, in promulgated states, the state sets the rate. In filed states, the insurer sets the rate which is approved by the state.

A bid state is what it sounds like - an insurer can bid the price they want to charge for insurance.

Have a title related question you'd like us to answer?  Comment here and we will respond! 

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