Basic Manual Of Title Insurance, Section III
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Effective November 1, 2024 (Order 2024-8851)

R-6. Subsequent Issuance of Mortgagee Policy

1. Subsequent to Owner Policy - When a Mortgagee Policy( ies) is requested, subsequent to the issuance of an Owner Policy which excepted to the Vendor's Lien, the premium shall be one-half the Basic Rate. The lien to be insured should be as originally produced, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) will be released in the amount of the existing unpaid balance of stated insolvency. The Company will be furnished such evidence as it may require verifying such unsettled balance, that the indebtedness is not in default and that there has actually been no acceleration of maturity. THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies provided by reason of notes being assigned to individual systems in connection with a master policy covering the aggregate indebtedness, consisting of improvements. Individual Mortgagee Policies must be released at the Basic Rates.

2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is asked for, for any reason whatsoever, on a lien currently covered by an existing Mortgagee Policy( ies), but not on a renewal or extension thereof, the new policy being in the amount of the current unpaid balance of the insolvency, the premium for the brand-new policy will be at the Basic Rate, but a credit for three-tenths (3/10) of stated premium may be permitted.

  1. Subsequent to Mortgagee Policy - When an insolvent insurance provider is placed in long-term receivership by a court of competent jurisdiction and a Mortgagee Policy( ies) is asked for on a lien currently covered by an existing Mortgagee Policy( ies) of stated insolvent insurance company, but not on a loan to use up, restore, extend or please an existing lien, the new policy being in the amount of the existing overdue balance of the insolvency, the premium for the new policy shall be at the basic rate, but a credit for one-half of said premium will be allowed, unless such credit would decrease the premium to less than the minimum Basic Rate, in which case the rate will be the minimum Basic Rate. The insured shall surrender the existing Mortgagee Policy( ies) to the Company when positioning the order for a brand-new Mortgagee Policy( ies). The date of Policy for the new policy( ies) shall be the exact same Date of Policy as the existing Mortgagee Policy( ies).

    R-7. Mortgagee Policies Covering First and Subordinate Liens Issued Simultaneously

    When a Mortgagee Policy is issued on a Very first Lien, and other policy( ies) is released on Subordinate Lien( s), created in the very same transaction, covering the very same land or a portion thereof, the premium for the First Lien policy will be calculated on the total of the combined liens