Bill > SB622

This bill requires title insurance companies to publicly post their schedules of risk rates, which include prices for policies, endorsements (additional protections), and closing protection letters (which protect against issues during the closing process). Title insurance companies, agencies, or agents are generally prohibited from charging more than these published rates for a title insurance policy, with specific exceptions allowing for higher charges when unusual risks are involved, unique services are provided, or there's uncertainty about the law, provided these exceptions are noted in the published schedule. The bill also clarifies that title insurance risk rates must be reasonable, adequate, and not unfairly discriminatory, and they shall be set at an amount sufficient to cover probable losses, exposure to loss, reserves, participating insurance costs, operating expenses, and other attributable business costs. It explicitly states that these rates should not include charges for services like abstracting, record searching, or escrow and closing services. Furthermore, companies can issue price schedules for these related services or combined pricing. Importantly, while companies are not required to file their rate schedules with the Commission (a regulatory body), they must publish them to their agents and provide a copy to the Commission. A significant new provision allows for negotiated rates on policies for owner-occupied primary residences owned by individuals or estate planning entities, with the title insurance company's written consent, and these negotiated rates are presumed to be fair.

Business and Industry, Justice

https://lis.virginia.gov/bill-details/20261/SB622