Title Insurance Policies in Pennsylvania
Contents
Overview
- Pennsylvania is a rating bureau state. WFG is a member of the Title Insurance Rating Bureau of Pennsylvania ("TIRBOP"). The Rate Manual and its contents are filed with and approved by the Pennsylvania Insurance Department. The Rate Manual covers all forms and all Rates up to $30 million.
- Who can sign Commitment/Policy -- Pennsylvania Licensed Producer
Pennsylvania-specific items
- Pennsylvania's Policies have eliminated Covered Risk 2(c) (survey coverage) from the ALTA forms. The only way to obtain survey coverage in Pennsylvania is by purchasing a PA 300 (Loan) or 301 (Owner) Endorsement.
- All Pennsylvania Commitments and Policies will also include Standard Exceptions for survey matters and for easements not shown by the public records. Due to how the PA 300/301 Endorsements are written, these Standard Exceptions are NOT deleted from the final Policy, even when survey coverage is being given by Endorsement. The correct drafting is to leave these Exceptions in Schedule B-I of the Policy, but copy them onto the PA 300/301 Endorsement. The language of the Endorsement(s) "deletes" the Exceptions.
- Usury, Truth-in-Lending, Zoning, Creditors Rights, Doing Business, INTERstate Tie-In, and Subdivision coverages are not available in Pennsylvania (as of 4/1/23). Endorsements for these coverages are not approved for use in Pennsylvania, and these coverages cannot be given using the General Endorsement.
- In a purchase transaction where a mortgage is being simultaneously insured, an owner's policy must be issued unless waived in writing in accordance with 31 Pa. Code 126.1. See Rate Manual Section 5.2(D), 5.3(D), 5.9(F).
The Rate Manual
The Rate Manual, with approved forms and Endorsements, can be found at: http://patitleratingbureau.org/tirbop-rate-manual/
Title Insurance Commitments
Commitments are NOT filed forms in Pennsylvania. However, WFG has required the usage of the 2021 ALTA Commitment form, available on the Underwriting website, and distributed to all major software vendors.
Title Examinations
The Title Insurance Act requires that a title insurance company, either through its own employees or agents, "has conducted a reasonable examination of the record title or has caused a reasonable examination of title to be conducted" prior to issuing a policy of title insurance."[1]
Title Insurance Policies
Policies are filed forms in Pennsylvania. Only approved Policies can be issued under the requirements of the Rate Manual. PA policies are a modified versions of the 2021 ALTA policies (effective April 1, 2023). PA has omitted survey coverage from the policy and requires such coverage to be purchased by endorsement.
Extended Coverage
Approved for use by members of TIRBOP in Pennsylvania (as of 4/1/23) are:
- ALTA Homeowners Policy (for a One-to-Four Family Residence) – as modified by TIRBOP (07/01/2021 TC 09/21/2021)
- Expanded Coverage Residential Loan Policy – Current Assessments (for a One-to-Four Family Residence) – as modified by TIRBOP (07/01/2021)
- Short Form Expanded Coverage Residential Loan Policy – Current Assessments (for a One-to-Four Family Residence) (07/01/2021)
Pro-Forma Policies
Title Insurance Endorsements
Endorsements are filed forms in Pennsylvania. Only approved Endorsements can be issued under the requirements of the Rate Manual, and cannot be altered. Affirmative risk coverages not contained in the Manual can be provided by general endorsement (see Section 2.4), however some coverages are specifically prohibited: Truth-in-Lending; Zoning; Creditors Rights; Doing Business; Usury; Tie-In INTERstate; Subdivision (see Section 6.27).
Title Insurance Rates
Rates are set by the Rate Manual. Pennsylvania is an "all-inclusive rate" State. The charge includes the cost of the search, title examination, escrow and settlement services and the insurance risk assumed by the insurer. Some supplemental and pass-through charges are authorized by the Rate Manual. See TIRBOP Website and Rate Manual Sections 2 & 3. Endorsement charges are also set forth in the Rate Manual.
Title Insurance Waiver
In a purchase transaction where a mortgage is being simultaneously insured, an owner's policy must be issued unless waived in writing in accordance with 31 Pa. Code 126.1. See Rate Manual Section 5.2(D), 5.3(D), 5.9(F).
