Why?
The agent component of the “data call” is vitally important to the state’s determination of a fair promulgated rate for title insurance. As agents earn up to 70% of the premium, the agent’s activities and financial picture must be understood by regulators in determining a rate that is fair to consumers and allows title agencies to earn a rate of return on their capital.
Florida’s promulgated rate for title insurance premiums protects the public by assuring the availability of title agents (both attorneys and title agencies) to serve all areas of the state and provide competition on settlement service charges. Quality information on the financial requirements of title insurance agents is critical to the state’s ability to set fair rates. Your attention and diligence will reward both title insurance agents and the public.
Does this Information Remain Confidential?
Yes. The information an individual agency provides to OIR will be kept confidential and is exempt from Florida’s public records laws. Only aggregated data will be reported by OIR.
Who Must Respond to the Data Call?
Only licensed title agencies are required, or permitted, to respond to the data call. Law firms shall not respond due to the complexity of allocating costs between title insurance work and other matters the law firm may engage in.
Is this Mandatory?
All title insurance agencies must respond, even if the title agency is owned by an attorney or law firm.
What will the Data Call Consist of?
The data call consists of four parts. OIR has promulgated a form that is expected to be ratified by the Florida Legislature in 2014 (attached to this message).
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The Florida Agent Statistical Plan
The Florida Agent Statistical Plan contains 98 data elements. It includes sections labeled General Information, Agency Information, Risk Assumption, Income, Expenses, Direct Agency Loss and Loss Avoidance Expenses.
Agent’s sources of information for the data elements:
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As identified in the General Information section, 39 of the data elements are to be drawn from the title agency’s IRS form 1120.
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The following 10 data elements will be captured by reports in DoubleTime. Information from other closing software may vary. In order for DoubleTime to accurately report the information agents must properly use DoubleTime including changing the file status when closing files and using the escrow accounting module. DoubleTime will provide reports to provide the information for data elements: 30, 31, 32, 36, 37, 38, 40, 41, 42 and 48.
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The remaining 49 data elements in the Statistical Plan portion are not routinely captured by closing software. Most are business expenses that are not detailed on tax returns. Some elements are specific business practice questions that must be tracked through the year. For example, line 34 asks agents to identify the number of searches they have acquired that include suggested or draft exceptions, how many do not, how many searches are acquired from a third party vendor and how many are conducted by an employee.
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Schedule A.
Schedule A contains six short answer questions primarily seeking information about the underwriters, abstractors and software providers an agent does business with.
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Schedule B.
Schedule B seeks to identify the amount of time title agency employees spend on search functions, primary title functions and closing services together with the cost of performing the functions. Schedule B contains fields labeled with roman numerals and letters. Agents are only required to respond to the 5 fields identified with roman numerals. The fields identified with letters are meant to be examples of the activities to be captured in the roman numeral fields.
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Schedule C
Schedule C requires agents to report the premium and number of transactions insured by the type of interest insured (owner, first mortgage, junior mortgage or leasehold), amount of the policy (among 5 amount levels) and rating (reissue mortgagee, reissue owners, substitution, new home discount and simultaneous). DoubleTime will provide reports providing all of this information. Schedule C also seeks information on any losses the agency paid. Agents will need to keep such information separately.
When Does this Begin?
The reporting period for the full data call form begins January 1, 2014. The first report must be filed in 2015. Information for the years 2010 through 2013, to the extent the information is readily available, is to also be reported in 2015. At a minimum the prior years’ report should contain the tax return information identified above.
How Do I Get Started?
Agents will be better prepared to complete the data call form if the requirements are reviewed now and procedures are established to capture the information throughout the year.
Which Fund Products Can Help?
Properly used, DoubleTime will provide invaluable assistance to produce key information.
Where Can I Get More Information?
Please contact Fund Risk Management Supervisor Leslie Anderson at 407.240.3863 ext. 7280 with any questions.