TEXAS TITLE RATES ON HOLD

Texas Insurance Commissioner Jose Montemayor issued an order that will leave title insurance rates unchanged in Texas. The title insurance industry sought a rate increase of 3.7 percent. The Office of Public Insurance Counsel recommended a 15.4 percent decrease. State law requires the commissioner to set new title rates every two years. Current title rates are based on a 3 percent reduction that took effect on August 1, 1998, the first reduction since 1978. The vast majority of title insurance premiums go to title agents, who are responsible for verifying a property’s clear title. Montemayor changed the premium split given to title agents from 82.25 percent to 85 percent, with title insurance companies’ portions dropping from 17.75 percent to 15 percent. The change took effect June 1.