Pillar 5 – Policy production, delivery, reporting and premium remittances
5.01 – Title Policy Production and Delivery Policy
Title policies are issued and sent to customers in a timely manner to meet statutory, regulatory, or contractual obligations.
Evidence: Policy Production Aging Report by Branch (Available upon written request)
Applicable parties: Policy Production, Escrow Personnel, Operating Accounting, Management
5.01(a) – Title Policy Production and Delivery Procedure
Title policies shall be issued and sent to the insured or customer within thirty (30) days* after the date of Settlement, or the date that the terms and conditions of the title insurance commitment are satisfied.
Evidence: Policy Production Aging Report by Branch (Available upon written request)
Applicable parties: Policy Production, Escrow Personnel, Operating Accounting, Management
5.01(b) – Delivery Methods
Delivery of title insurance products is completed immediately following policy production and each file has an auditable trail regarding who sent the title products by 1 of the following 4 methods below:
(1) By email:
Electronically produced title insurance products are sent to the customer by email with a record of who sent the email, what product was sent, when, and to which email address;
(2)By US Mail:
(a)Prepare paper originals with electronically produced policy jackets.
(b)Prepare appropriate envelopes with verified postal addresses.
(c)Place in US Mail with correct postage; or
(3)By Courier (FedEx/UPS):
(a)Prepare paper originals with electronically produced policy jackets.
(b)Prepare appropriate air bills with verified physical delivery addresses.
(c)Place in correct box for pickup.
(d)Place copy of air bill in file for file tracking.
(4)In Person:
Electronically produced title insurance products copies are given to a customer
Evidence: Actual Guaranty File (Available upon written request)
Applicable parties: Escrow Personnel
5.01(c) – Review open files and backlog
All open files with a settlement date more than 30 days prior are reviewed by owning Escrow officer monthly to determine if title insurance policies have been issued. If not, review and follow up with appropriate parties of all outstanding requirements from the commitment. Once all requirements are met immediately issue all title insurance products.
Evidence: Monthly Policy Production Aging Report (Available upon written request)
Applicable parties: Escrow Branch Mangers Only
5.01(d) – Verify for Compliance
Owning Escrow officer verifies monthly that the closing date (or the date that the last requirement of the commitment in the file was satisfied) was less than 90 days before policy issuance date. In the event files consistently exceed this procedure, management takes appropriate remediation steps to reduce the backlog.
Evidence: Monthly Policy Production Aging Report (Available upon written request)
Applicable parties: Management and Escrow Branch Managers Only
5.02 – Policy Reporting
The Company reports title policies issued to its underwriter(s) by the last day of the month following the month of the settlement date or based on statutory, regulatory, or contractual obligations, whichever is earlier, but not to exceed 45 days.
5.02(a) – Policy Reporting Procedure
The Company identifies deadlines for policy reporting based on statutory, regulatory or contractual reporting requirements.
The Company verifies that all title insurance products for transactions which settled in the prior calendar month are included unless the last requirement for the commitment in the file was not satisfied. Transactions falling outside of the prior calendar month where terms and conditions of the title commitment were satisfied in the prior month are included.
Electronic Reporting
An electronic copy of all title insurance products is placed in the designated file system for transmission to the appropriate underwriter.
On or before the underwriter deadline, the Company transmits the applicable report(s) to the underwriter along with copies of all title insurance products included on the report(s).
AND/OR
Physical Reporting
A physical copy of all title insurance products is made and placed in a holding area for transmission to the appropriate underwriter.
On or before the underwriter deadline, the Company sends the applicable report(s) to the underwriter along with copies of all title insurance products included on the report(s).
Evidence: Monthly Underwriter Policy Remittance Reports (Available upon written request)
Applicable parties: Policy Production
5.03 – Remittance Processing Policy
The Company remits the correct portion of the premium collected to the underwriter by the last day of the month following the month of the settlement date or based on statutory, regulatory, or contractual obligations, whichever is earlier.
Applicable parties: Operating Accounting, Corporate Administrator
5.03(a) – Remittance Processing Procedure
The Company identifies deadlines for remittance of premiums based on statutory, regulatory or contractual requirements.
(1)Determine correct remittance amount for each underwriter.
(2)Prepare appropriate transmittals with verified address to accompany payments.
(3)Remit payment to each underwriter for all underwriter portions of premiums due.
(4)As applicable, log information for tracking and audit purposes.
(5)When the statements for the prior month remittance are available, management reviews the statements and researches any outstanding balances. Any overpayment is promptly researched and, if due to a customer, is immediately refunded.
Evidence: Monthly Underwriter Remittance Reports and Proof of Payments (Available upon written request)
Applicable parties: Operating Accounting, Corporate Administrator, Management
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