OR DFR Bulletin 1994-04: Creditor's Rights Coverage

INSURANCE DIVISION BULLETIN INS 94-4

DATE: June 24, 1994

TO: All Title Insurers and Title Insurance Agents in Oregon

RE: Creditor's Rights Coverage

In June 1993. the Insurance Division provided the title insurance industry

with guidelines for using specific editions of ALTA policies, as well as for charges for creditor's rights

coverage. Creditor's rights coverage requires a charge. whether by indorsement or loading. if provided

by a policy edition that does not expressly exclude it.

Failure to file for a charge for this exposure may create unfair discrimination in the rating structure and

grounds for withdrawal of approval of policy forms.

As of the date of this bulletin, only two of the eight active title companies in Oregon have responded to

the Insurance Division's request for filing an indorsement with a premium charge for deletion of the

creditor's rights exclusion in the 1992 and 1990 policies and/or a loading of 1987 and 1970 policies to

cover the creditor's rights exposure.

The premium charge for this exposure should cover administrative and document review. consultation

with regional/home office and title personnel. lender interview. preparation and risk.

All title insurers and title insurance agents in Oregon that are covering a creditor's rights exposure

should have an approved filing for the appropriate charge for this coverage.

_______(signed)_______

Mary Alice Bjork, Administrator

Insurance Division

Department of Consumer and Business Services

Department of Consumer and Business Services

Insurance Division

350 Winter St. NE, Room 440

PO Box 14480

Salem, OR 97301-0405

(503) 947-7980

FAX (503) 378-4351

TTY (503) 947-7280

www.oregoninsurance.org