FILING FEES FOR OWNERSHIP AND ENCUMBRANCE REPORTS PURSUANT TO REG 3-5-1

Read the entire letter from the Colorado Division of Insurance – O&E letter

Division of Insurance – Marcy Morrision the Commissioner of Insurance

Repealed and Re-promulgated Regulation 3-5-1 goes into effect May 1, 2010.  Of the new provisions being put into effect is the requirement that title entities charge for all ownership and encumbrance (O&E) reports.  Because title entities are not allowed to charge for title insurance products unless they are shown on a currently effective schedule of rates or fees, it is expected by the Division that title entities file their fees for O&E’s prior to use.

However, there have been a number of inquiries regarding timing of the filings.  In August 2009, new statutory requirements went into effect, requiring the filing of justification for new or amended rates and fees to be submitted and received by the Division 30 days prior to use.  This would mean that all fillings for O&E reports must be received by April 1, 2010 in order to have a May 1, 2010 effective date.

In recognition that a two-week time frame for preparing new fee filings may not be adequate, the Division is willing to work with companies trying to submit complying filings to meet the May 1, 2010 implementation date.  To insure this process will be completed as soon as possible, and with the least amount of confusion, the following conditions apply:

• BEGINING MAY 1, 2010, ALL TITLE ENTITIES MUST BEGIN CHARGING THEIR EXPECTED FEES FOR O&E REPORTS, REGARDLESS IF A FILING HAS BEEN SUBMITTED.
• No later than June, 2010, all filing fees for O&E reports must be submitted to the Division including the new O&E report justification.  IF A FILING IS NOT SUBMITTED BY JUNE 1, 2010, THE TITLE ENTITY IS NO LONGER PERMITTED TO ISSUE O&E REPORTS.

Enforcement of the prohibitions against charging unfiled rates or fees ONLY as they pertain to O&E reports will begin June 1, 2010.  All other prohibitions, including charging unfiled rates for products other than O&E’s, remain in effect May 1, 2010.

If you have questions please contact:

Andy Helm – andy.helm@dora.state.co.us or Stephanie Paswaters stephanie.paswaters@dora.state.co.us

Tags: O&E report, Ownership and Encumbrance in Colorado, Reg 3-5-1

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Posted in Colorado Title Insurance by titleins 2 Comments