38.2-4608 - Title insurance rates.
§ 38.2-4608. Title insurance rates.
A. Title insurance risk rates shall be reasonable and adequate for the classof risks to which they apply. Risk rates shall not be unfairly discriminatorybetween risks involving essentially the same hazards and expense elements.The rates may be fixed in an amount sufficient to furnish a reasonable marginfor profit after provision for (i) probable losses as indicated by experiencewithin and without this Commonwealth, (ii) exposure to loss under policies,(iii) allocations to reserves, (iv) costs of participating insurance, (v)operating costs, and (vi) other items of expense fairly attributable to theoperation of a title insurance business.
B. Policies may be grouped into classes for the establishment of rates. Atitle insurance policy that is unusually hazardous to the title insurancecompany because of an alleged defect or irregularity in the title insured orbecause of uncertainty regarding the proper interpretation or application ofthe law involved, may be classified separately according to the facts of eachcase.
C. Title insurance risk rates shall not include charges for abstracting,record searching, certificates regarding the record title, escrow services,closing services, and other related services that may be offered orfurnished, or the cost and expenses of examinations of titles.
D. Any title insurance company may issue, publish and use price schedules fortitle insurance and for any separate or related services, or schedulessetting forth one price covering the risk rate and the charges for anyseparate or related services.
E. A title insurance company or title insurance agent may charge risk ratesthat it negotiates with any potential insured. Such negotiated rates shall bepresumed not to be unfairly discriminatory and not to violate § 38.2-509 ifsuch rates comply in all other respects with subsection A.
(1952, c. 317, § 38.1-728; 1986, c. 562; 2005, c. 848.)