Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.05.01 - RULES FOR TITLE INSURANCE REGULATION › Section 18.05.01.013 - PREMIUM RATES AND THEIR APPLICATION

Current through August 31, 2023
01.
Schedule
			 of Premium Rates
. Each title insurer will file its schedule of premium
			 rates (including both the taxable risk portion and the service portion) for
			 title insurance charged the public for all policies, which premium rates
			 commence with the lowest rate and advance by one thousand dollars ($1,000)
			 increments. The rate schedule will include owner's, standard mortgagee and
			 extended coverage mortgagee policies, and may include other rates. In addition,
			 any charges made for special endorsements will be listed and the type of policy
			 to which applicable. Filed rates will provide that where a preliminary report
			 is issued, the order for the policy may be canceled prior to closing. The
			 applicant may be requested to pay a cancellation fee. The premium rates for
			 policies will only include title examination and issuance of title insurance
			 which will be deemed to include any preliminary report, commitment to insure,
			 binder or similar report (herein collectively called preliminary report) and
			 the policy subsequently issued thereon. If more than one (1) chain of title is
			 involved, an additional charge will be made for each additional chain. An
			 additional chain is one involving property in a different block or section or
			 under a different ownership within the last five (5) years. (3-31-22)
02.
Issuing Binders, Commitments or
			 Preliminary Reports
. No title insurer or title insurance agent will
			 issue a title insurance binder, commitment or preliminary report without an
			 order. (3-31-22)
03.
Amount
			 of Owner's Policy
. An owner's policy will be issued for not less than
			 (a) the amount of the current sales price of the land and any existing
			 improvements appurtenant thereto, or (b) if no sale is being made, the amount
			 equal to the value of the land and any existing improvements at the time of the
			 issuance of the policy. If improvements are contemplated, the amount may
			 include the cost of such improvements immediately contemplated to be erected
			 thereon with a following pending improvement clause set forth in Schedule B of
			 said policy and the full premium collected, which clause reduces the policy
			 amount to the extent the improvements are not completed. The amount of policies
			 covering leasehold estates for a term of fifty years or more will be for the
			 full value of the land and existing improvements, and for less than fifty years
			 will be for an amount at the option of the insured based on either the total
			 amount of the rentals payable for the primary term but not less than five (5)
			 years, or the full value of the land and existing improvements together with
			 any improvements immediately contemplated to be erected thereon. The amount of
			 policies insuring contract purchasers will be for the full value of the
			 principal payments. Insurance of lesser estates will be written for the amount
			 of the value of the estate at the time the policy is issued.
			 (3-31-22)
04.
Amount of
			 Mortgagee Policies
. A mortgagee's policy will be for not less than the
			 full principal debt of the loan insured and at insured's request may include up
			 to twenty percent (20%) in excess of the principal debt to cover interest,
			 foreclosure costs, etc. Where the land covered represents only part of the
			 security for the loan, the policy will be written for the amount of the
			 unencumbered value of the land or the amount of the loan, whichever is the
			 lesser. (3-31-22)
05.
Simultaneous Issuance of Owner's and Mortgagee's Policy
. When an
			 owner's policy and a mortgage policy covering identical land are simultaneously
			 issued, the owner's policy will bear the regular owner's rate. Premium for the
			 mortgagee policy simultaneously issued may be for an amount less than the full
			 mortgagee rate for the amount of insurance not in excess of the owner's policy.
			 (3-31-22)
06.
Double Sale and
			 Reissue
. No order will be held open to cover a double sale and the
			 premium will be charged and the policy issued on each sale, unless the
			 conveyance on resale is recorded at the same time as the original transaction.
			 A title insurer may file an owner's reissue rate of not less than fifty percent
			 (50%) of the basic rate which will be applicable to any policy ordered within
			 two (2) years of the effective date of a prior owner's or purchaser's policy
			 naming applicant as the insured provided that the following conditions are met:
			 (3-31-22)
a. The prior policy or a copy
			 thereof is presented to the issuing company and will be retained in the issuing
			 company's file, or in the absence thereof, reasonable proof of issuance is
			 provided the issuing company. (3-31-22)
b. The reissue premium will be based on the
			 schedule of fees in effect at the time of reissue.(3-31-22)
c. Increased liability is to be computed in
			 accordance with the basic schedule of fees in the applicable brackets.
			 (3-31-22)