Beginning on September 2, 2014, all Florida title insurance agents must collect a surcharge of $3.28 per policy and remit it to the insurer. Please see the Fund Alert dated June 11, 2014 for information on the purpose and authority for the surcharge.
Below are answers to some Frequently Asked Questions:
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HOW LONG WILL THIS ASSESSMENT LAST? This assessment will continue until further notice. We anticipate that it will take approximately one year to recoup the funds expended to protect the consumers from these two failed underwriters.
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MUST ATTORNEY AGENTS CHARGE THIS FEE AS WELL? Yes, every agent, attorney or corporate, must add this assessment on every closing beginning September 2, 2014.
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WHO SHOULD BE CHARGED THIS FEE ON THE CLOSING STATEMENT? The assessment fee should be charged to the party contractually responsible for paying the premium for the policy.
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MUST THE CHARGE BE MADE ON A SIMULTANEOUSLY ISSUED MORTGAGEE POLICY? No, there should not be a second charge for the Mortgagee policy that is simultaneously issued. Only the party paying for the Owner’s policy should be assessed.
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WHERE SHOULD THE CHARGE BE SHOWN ON THE CLOSING STATEMENT? The Assessment should be shown on a blank line in the 1100 block of the Closing Statement. Old Republic Title should be designated as the payee.
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IS THIS CHARGE SUBJECT TO THE USUAL PREMIUM SPLIT WITH THE UNDERWRITER? No it is not. 100% of the $3.28 is to be remitted to the underwriter.
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MUST I CUT A SEPARATE CHECK FOR EACH POLICY? While this is preferred for ease of bookkeeping, a single, separate check that aggregates the assessment for all policies in a remittance is acceptable. It is essential that you not combine any assessment check with a premium check or checks.