Wisconsin Rates and Rules Revised Effective November 1, 2016

Thomas G. Cullen photoThe revised  Rates and Rules Filing is designed to update fees to adequately reflect risk and expense factors and to clarify the application of existing rules. The new Rates and Rules take effect on November 1, 2016.

Please note the Original Rate Chart (Appendix A) has changed. The initial base rate of insurance has increased from $375 to $425. This means the rate range for both the minimum and maximum rates have increased by $50. These rates must be used on any title file opened after November 1, 2016. Files opened before that date should use the current rate chart (see ATG Rate Schedules).

As in the past, when using the Original Rate Chart an ATG agent must charge within the rate range. This is before the application of the Reissue Rate, if available. In other words, the title premium can go below the minimum rate if the prior policy discount has been applied.

The following is a summary of the main changes contained in the new Rates and Rules Filing:

  1. Section I, A – Definitions, paragraph (13). Adds the definition of “Purchase Money Mortgage.”
  2. Section II, A – Original Policy Rates. Defines the use of the Original Policy Rate chart and the type of policies where the rate chart is inapplicable.
  3. Section II, A – Original Policy Rates. Establishes the base rate for both the minimum and maximum charges at $425.
  4. Section II, A – Original Policy Rates. Reinsurance rates apply on all policies issued over $1,500,000. All proposed Commitments that exceed $1,500,000 cannot be issued without first obtaining high risk and rate approval from the ATG Wisconsin office.
  5. Section II, B – Reissue Rate. After the reissue rate calculation the minimum premium for an Owner’s, Loan, or Leasehold policy shall not be less than $425.
  6. Section II, C - Residential Refinance Loan Policy Rate – Expedited Searches. The residential refinance rate for expedited searches is available for use in residential refinances, a junior mortgage that is a Purchase Money Mortgage, and a mortgage on a lien-free residential property. The premium rate has been increased to $350 for the first $350,000 of insurance. The rate remains at $1 per thousand thereafter.
  7. Section II, C - Residential Refinance Loan Policy Rate – Full Searches. The residential refinance rate for expedited searches is available for use in residential refinances, a junior mortgage that is a Purchase Money Mortgage, and a mortgage on a lien-free residential property. The premium rate was not changed. The filing further defines the type of policies that are not available for the Residential Refinance Rate.
  8. Section II, F – Simultaneous Rate. The Simultaneous Rate for a Loan Policy has been increased $50. For Residential property the premium is $350 and for Non-Residential property the premium is $400.
  9. Section II, G – Bifurcated Owner’s and Loan Policy Rate. Defines that the Bifurcated Loan Policy rate is for Residential properties exclusively. Non-residential Loan Policies are charged at the Original Policy Rate.
  10. Section II, I – ALTA Residential Limited Coverage Junior Loan Policy Rate. Defines the use of the ALTA Residential Limited Coverage Junior Loan Policy to junior loans such as home equity lines of credit and second mortgages on Residential property only. This policy may not be used to insure a junior mortgage that is a Purchase Money Mortgage or to insure a mortgage on an otherwise lien free property.
  11. Section II, L – Miscellaneous Rate (2) Employee/Agent Rate. An employee of ATG or an ATG Member and their employees may receive a 30% discount off the applicable rate, for the sale or refinance of their primary residence.
  12. Section IV, Endorsements. An additional 38 new endorsements have been filed with the Office of Commissioner of Insurance. Many of the endorsements are non-ALTA endorsements, which cover unique situations. Please review the endorsement list because the premium has changed on several of the endorsements.
  13. Section IV, Endorsements – GAP. For Residential property the Owner’s Policy GAP endorsement is always charged at $125. If the lender requests a Loan Policy GAP endorsement, an agent can issue the lender’s GAP at “no charge” if the agent is also simultaneously issuing an Owner’s Policy GAP endorsement. If no Owner’s Policy GAP endorsement is being issued, the lender’s GAP endorsement is $125. For Non-Residential property the GAP endorsement is always charged at $200 for both the Owner’s and Loan Policies.

I invite you to read the entire  Rates and Rules Filing. If you have any questions, please feel free to contact me.

Thomas G. Cullen
ATG Vice President and Managing Attorney - Wisconsin Operations

Posted on: Fri, 10/14/2016 - 2:35pm