3 AAC 27.370 - Charges for services

(a) A title insurance company or title insurance limited producer shall charge for any class of service delivered or provided in this state that relies in whole or in part upon documents contained in the title plant or public record. This charge must be commensurate with the cost of delivering or providing the class of service. The title insurance company or title insurance limited producer shall bill for the class of service when the service is provided and collect the amount due within 30 days of the first billing. A payment for a class of service may be credited to the subsequent issue of a title insurance policy in accordance with the insurer's filed rate schedule, as provided in (e) of this section.

(b) When issuing a title insurance policy, a title insurance company or title insurance limited producer shall clearly reference within the examination file the rating schedule rule used for an order and provide the calculation of the final rate applied.

(c) A title insurance company or title insurance limited producer shall bill and collect an amount for their services equal to the rates on file with the director for a preliminary commitment that is issued, for the amount of insurance ordered on a policy that is issued, or for a cancelled order.

(d) A title insurance company or title insurance limited producer shall bill and collect an amount equal to the cancellation charge on file with the director for an order of title insurance that does not result in the issuance of a policy within 12 months, that is not replaced with a subsequent order, or that is cancelled.

(e) In accordance with an insurer's filed rate schedule, a title insurance company or title insurance limited producer shall credit a cancellation charge collected under (d) of this section to the charge for a title insurance policy it subsequently issues, in the following amounts:

(1) the full amount of the cancellation charge if, within 12 months of the date of a cancelled order, a policy is issued or a cancelled order is replaced with another order for title insurance on the same property;

(2) up to 50 percent of the cancellation charge if, after 12 months but within 24 months of the date of a cancelled order, a policy is issued or a cancelled order is replaced with another order for title insurance on the same property;

(3) no portion of a cancellation charge may be credited to a title insurance policy or subsequent order for title insurance 24 months after the date of the cancelled order.

(f) The director will, in the director's discretion, consider the following practices to be a rebate or inducement under AS 21.66.310:

(1) the failure of a title insurance company or title insurance limited producer to bill for a class of service;

(2) the pattern of a title insurance company or title insurance limited producer of writing off charges that have been billed but not collected.

Notes

3 AAC 27.370

Eff. 4/15/2000, Register 154

Authority:AS 21.06.090

AS 21.66.310

AS 21.66.370

AS 21.66.380

AS 21.66.390

AS 21.66.410