...Since the early 1960's

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Reinsurance

Reinsurance is an integral part of the title insurance business in general, and ATGF's large Policy business in particular. While a Policy can be issued in any amount, all title insurance companies, including ATGF, have a limit on the amount of risk retained on any single transaction. Portions of the risk over the "retention limit" are traded or transferred, for a fee, to other title insurance companies when a Policy is issued.

Reinsurance is:

NOT more costly than using a single title insurer.



Reinsurance is:

NOT time-consuming and bothersome for the issuing attorney--you provide the necessary information via an over limit request form, and ATGF handles all the details quickly and efficiently, without causing delays for the Member-Agent.



Reinsurance is:

NOT risky--ATGF is principally liable to the insured for the entire amount of the Policy, no matter how large. The other title insurance companies that are reinsuring for certain amounts of the total risk over ATGF's retention limit are secondarily liable for the amount they reinsured. ATGF Member-Agent's liability in issuing a Title Insurance Policy is not increased or altered in any way.



Reinsurance is:

NOT expensive - approximately $.35 per $1,000.00.

The Member-Agent participates in the cost of reinsurance when the transaction is for
$1,000,000.00 and up.

ATGF PAYS 100% OF ALL REINSURANCE BETWEEN $300,000 AND $999,999.99.

The reinsurance process:

The reinsurance process is normally automatic; however, when a Member-Agent is providing title work on transactions of $ 500,000.00 and up, the Member-Agent must submit to ATGF a request for authorization to issue such a Policy and for a reinsurance premium rate split for transactions $1,000,000 or over.

To provide a rate quote, ATGF needs the following information:

  • Identity of prospective insured(s)
  • County in which the property is located
  • Whether the property is waterfront or not
  • Improvements presently on the property
  • Improvements to be constructed
  • Name of primary and/or permanent lender
  • Amount of Policy (or policies, if concurrent issue)
  • Whether the property is covered by any prior Title Insurance Policy, and, if so, the name of the underwriter, the Policy number, and the amount.
  • Whether the proposed Policy is to be an owner's, mortgagee's or concurrent issue of both;
  • Any special reinsurance requirements
  • Anticipated closing date
  • If it is a Mortgagee Policy, whether the mortgage contains an additional or future advance provision, and the maximum amount to which the mortgage will be increased
  • Affirmative coverage (zoning or non-imputation); revolving credit
  • Any additional information that might be required.

If speed is essential, overnight express services are available to meet the requirements and deadlines of the attorney and client. If necessary, a copy of the reinsurance Commitment can be sent. Also, if required, a reinsurer will confirm its Commitment directly to the Member-Agent or client by phone, FAX, or E-mail. A simple request for these services is all that is needed.

For answers to any questions, call ATGF at (303) 292-3055 or 1-800-525-6558.

 

 

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