Beginning on September 2, 2014, all title insurance agencies licensed in Florida will begin collecting a “Statutory Surcharge” of $3.28 from the party responsible for paying the title insurance premium on the Settlement Statement. This surcharge will be payable to the underwriter and is not split with the agent.
This surcharge is the result of two title insurance underwriters going out of business and their “Receivers” obtaining court orders under Florida Statute 631.400 – 631.401 to recoup the losses.
- The Receiver for National Title Insurance company obtained a court order assessing all other title insurers $212,000 to cover expected claims and expenses. That works out to $0.28 per policy issued.
- The Receiver for K.E.L. Title Insurance Group obtained a court order assessing all other title insurers $2,023,870 to cover expected claims and expenses. That works out to $3.00 per policy issued.
Collection of the per policy surcharge will continue until the Office of Insurance Regulation notifies us that the required amount has been collected.
Post Courtesy of Benefit Title in Tampa