The Company receives its policy inventory directly from the insurer via the electronic policy application. A Policy Inventory Report is available in the application to track and monitor all of the electronic policy numbers allocated to The Company.
The following items are included in the Policy Inventory report:
- The electronic policies are received by The Company
- The file number associated with each policy number
- Unused policies
- Voided policies
- Policy numbers assigned, but not yet reported to the insurer
- Policy issued, but not yet reported to the insurer
In addition to the Policy Inventory report, The Company has a tracking system that identifies files that have closed for which policies have not been issued. Electronic policy stock is limited to authorized users with login and passwords. Policy inventory duties have been clearly defined and are the responsibility of the Accounting Manager. We are able to reconcile our policy inventory records with the Insurer’s records.
Policies are issued to customers (lender and/or purchaser) within 30 days after the transaction is disbursed. Electronic (or manual) logs (attached) are maintained within the software system to monitor all orders that have closed and disbursed in which final policies have not been issued.
If The Company does not perform the settlement/closing, the order is tracked and monitored by the Escrow Officer to ensure the documents are received 30 days after disbursement.
If a short-form lender’s policy is issued, it can be delivered immediately after disbursement; however, monitoring procedures are still in place to ensure the necessary documents are recorded.
Premium Remittance and Policy Reporting
In accordance with contractual or statutory obligations on a monthly basis, The Company reports to the insurer all title insurance policies (including endorsements), premiums and other fees as contractually obligated.
Reporting is performed using the attached policy register report that has been approved by the insurer or via electronic upload through the insurer’s electronic reporting web-based system. Physical copies of the policies are emailed (or mailed) to the insurer.
A policy register report is maintained by each office that performs policy production.
Premium remittance duties have been clearly defined and are the responsibility of the Accounting Manager. We are able to reconcile the premiums and fees we charged to our customers with the premiums and fees remitted to the insurer.