69O-186.004. Classification of "Certificates of Title" as a Respective Type of Title Insurance Contract and Promulgation of a Specific Rate Schedule Applicable Thereto

(1) The initial Title Insurance Rate Promulgation Order promulgated on March 7, 1967, pursuant to the provisions of Section 627.0956, Florida Statutes (Rule 69O-186.003, F.A.C.), did not recognize Certificates of Title (commonly identified as Department of the Army Engineers Form 903, dated December 1, 1963, and Department of the Army Engineers Form 1017, dated April 1, 1962) and other substantially similar contracts used by governmental agencies, federal or state, in the acquisition of real property and easements for non-proprietary governmental uses and purposes, as “a respective type of title insurance contract” to which a specific rate schedule would be applicable.

(2) Such Certificates of Title and substantially similar contracts differ from “standard” title insurance contracts contemplated in the initial rate order in that the risk assumed is substantially confined to matters of record only and that in transactions with many such governmental agencies statutes of limitation constitute a bar to action for inverse condemnation.

(3) These distinctions warrant promulgation of a lesser risk premium applicable to such Certificates of Title and substantially similar contracts.

(4) Such a promulgation shall apply only to and be limited to those Certificates of Title and substantially similar contracts used by governmental agencies in the acquisition of real property and easements for a governmental or public purpose for public use as distinguished from such acquisitions by such agencies in the exercise of their proprietary functions.

(5) Transactions involving such Certificates of Title for such purposes usually involved the issuance of several interim title insurance certificates, sometimes referred to as title insurance binders, the cost factor of which should be recognized in the allowance of an interim certificate charge for each certificate issued subsequent to the initial certificate, sometimes referred to as the preliminary certificate, in addition to the risk premium charge.

(6) In recognition of the above factors the following risk premium schedule and interim binder or certificate charges are hereby promulgated as being applicable only to such Certificates of Title and substantially similar contracts when used by governmental agencies, state or federal, for the acquisition of real property and easements for a governmental or public purpose and use as distinguished from a proprietary purpose and use:

 

		For Each Interim Certificate
		Subsequent to
Amount of Liability	Per Thousand	Initial Certificate
$0-50,000	2.25	Plus $5.00
50,000-100,000	1.75	Plus $5.00
100,000-500,000	1.50	Plus $5.00
Over 500,000	1.25	Plus $5.00

 

Specific Authority 624.308(1) FS. Law Implemented 624.307(1), 627.782 FS. History–New 9-17-71, Amended 12-28-73, Repromulgated 12-24-74, Amended 4-12-82, 12-23-82, Formerly 4-21.04, Amended 6-25-86, 2-26-90, Formerly 4-21.004, 4-186.004.