Instructions for "Title Insurance Statistical Plan and Income Statement Form" - California

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Instructions for Completing the
Title Insurance Statistical Plan and Income Statement
1. General
Pursuant to California Insurance Code (CIC) Section 12401.5, the Insurance Commissioner requests
each Title Insurance Company licensed to transact business in California to submit a Statistical Plan
and Income Statement report on the prescribed electronic forms and in accordance with these
regulations. The submissions shall be reported annually.
2. Submission Date
1) If your company does not have any title business in California during the year
2017, no submission is need.
2) If your company has data to report, a completed submission shall be made to the
Department no later than June 30, 2018.
3. Where to Submit
Submit the completed survey to the Rate Specialist Bureau by sending either:
1) An electronic copy of the file by e-mail to:
rsbTitle@insurance.ca.gov
Subject Line: "CA Title Insurance Statistical Plan – 2017"
OR
2) A copy of the files on CD/DVD to the address below.
Any questions or correspondence can be directed to:
CALIFORNIA DEPARTMENT OF INSURANCE
Attention: Rate Specialist Bureau
300 South Spring Street, South Tower, 11th Floor
Los Angeles, CA 90013-1230
Fax#:
(213) 897-6361
E-mail: rsbTitle@insurance.ca.gov
California Department of Insurance
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Instructions for Completing the
Title Insurance Statistical Plan and Income Statement
1. General
Pursuant to California Insurance Code (CIC) Section 12401.5, the Insurance Commissioner requests
each Title Insurance Company licensed to transact business in California to submit a Statistical Plan
and Income Statement report on the prescribed electronic forms and in accordance with these
regulations. The submissions shall be reported annually.
2. Submission Date
1) If your company does not have any title business in California during the year
2017, no submission is need.
2) If your company has data to report, a completed submission shall be made to the
Department no later than June 30, 2018.
3. Where to Submit
Submit the completed survey to the Rate Specialist Bureau by sending either:
1) An electronic copy of the file by e-mail to:
rsbTitle@insurance.ca.gov
Subject Line: "CA Title Insurance Statistical Plan – 2017"
OR
2) A copy of the files on CD/DVD to the address below.
Any questions or correspondence can be directed to:
CALIFORNIA DEPARTMENT OF INSURANCE
Attention: Rate Specialist Bureau
300 South Spring Street, South Tower, 11th Floor
Los Angeles, CA 90013-1230
Fax#:
(213) 897-6361
E-mail: rsbTitle@insurance.ca.gov
California Department of Insurance
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Specific Instructions for the Title Insurance Statistical Plan and Income Statement Report
Tab 1 (of the Workbook) – Company Information (Signature Page / Certification)
The Company Information (Signature / Certification) Page requires the signature, under penalty of
perjury, of an officer authorized to certify that the Statistical Plan and Income Statement reported
herein is accurate, true and correct, complete, and in compliance with these regulations. It shall be
submitted annually with the Statistical Plan and Income Statement report.
This page can be printed out, signed by the appropriate officer, then scanned and sent to the
Department as a PDF file.
Tab 2 – General Interrogatories Page
The Interrogatory Page shall be filled out and submitted annually with the Statistical Plan and Income
Statement report. It asks the following:
• Does your company have a "controlled escrow company" as defined by CIC Section 12340.6?
If "yes" - provide the complete corporate name of each.
• Does this report include the data for the controlled escrow company(s)?
If "no" - have your controlled escrow company(s) submit a completed report.
• Is the county data reported in CATI-R4 based on the County where the property is actually
located?
If "no" - explain further. (i.e. What the County data consists of -- data based on where the
escrow office is located or where the transaction was processed, etc. and an explanation or
justification why data by property location can't be given.)
• The data required in CATI-R1 shall be California specific when available; otherwise, it shall
be allocated based on the ALTA method. The reporting company shall indicate whether the
data is California specific by marking in the space provided.
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CATI-R1: Income Statement
The Income Statement page requires the company’s California and Countrywide revenue and expense
items for the current report year and the previous year. Please note that certain line items are
calculated items and do not require data entry by the company.
The breakout of revenue and expense items is detailed and specific instructions for each line item
are listed below. All line items are mutually exclusive of one another. Do not enter a specific
expense or revenue in more than one line. The amount for each item shall be reported on an
accrual basis. Use California specific data when it is available. If California specific data is not
available, use the allocated amount based on the ALTA method.
Companies shall use the following standards when reporting information on this form:
• Unless otherwise specifically indicated, any allocations between states are to be based upon
the methods recommended by the American Land Title Association (ALTA) Uniform
Financial Reporting Plan. Other necessary allocations are to be made on a reasonable and
equitable basis.
• Financial Statement Classifications used in this report as well as other instructions for its
completion shall conform to those used in the Official NAIC Annual Statement (AS)
Instructions, unless otherwise indicated herein.
• All amounts shown on this report are to be in whole dollars, with no decimal points or
pennies. Round amounts of $0.50 or more up to the next highest dollar amount; round
amounts of $0.49 down to the next lowest dollar amount.
Row/Line Number
Name of Data Line
Description and Instructions for Data Line
R1.1A
Gross Written Title Premium
Report Countrywide amount and California specific or
allocated amount. Calculated: 1A.a + 1A.b + 1A.c + 1A.d
Total gross written title premium before remittances to agents/
underwritten title companies during the reporting period. Report
direct business, meaning before adjustments for reinsurance.
CW amount should equal NAIC AS Form “Operations &
Investment Exhibit” -- Part 1A, Line 1, Column 4.
R1.1A.a
Direct Operations
Report Countrywide amount and California specific or
allocated amount. Enter total title written premium from Direct
Operations.
Exclude from California amounts reported for unusual risk
premiums charged pursuant to Insurance Code Section 12401.8
reported on Row 1A.d below.
Include direct business, meaning business performed by the
reporting company without the use of an underwritten title
company. Report the entire gross premium and do not deduct
any amounts incurred or received for work charges/premium
splits. Report premium only for transaction in which the
reporting company was the initial recipient of funds from the
ultimate consumer.
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CW amount should equal NAIC AS Form “Operations &
Investment Exhibit” -- Part 1A, Line 1, Column 1 (excluding
California “Unusual Risk Premium,” if any).
R1.1A.b
Non-Affiliated Agencies/UTCs
Enter total title written premium from Non-Affiliated Agencies/
Underwritten Title Companies. CW amount should equal NAIC
AS Form “Operations & Investment Exhibit” -- Part 1A, Line 1,
Column 2 (excluding California “Unusual Risk Premium,” if
any).
R1.1A.c
Affiliated Agencies/UTCs
Enter total title written premium from Affiliated Agencies/
Underwritten Title Companies. CW amount should equal NAIC
AS Form “Operations & Investment Exhibit” -- Part 1A, Line 1,
Column 3 (excluding California “Unusual Risk Premium,” if any).
R1.1A.d
Unusual Risk Premium
Enter total title written premium for unusual risk premiums
charged pursuant to Insurance Code Section 12401.8
for California Amounts Only.
Include direct operations, non-affiliated agency, and affiliated
agency operations. Report the entire gross premium and do not
deduct any amounts incurred or received for work charges/
premium splits. Report premium only for transaction in which
the reporting company was the initial recipient of funds from the
ultimate consumer.
Enter the same amount for California and Countrywide.
R1.1B
Net Written Title Premium
Calculated: 1A + 1B.a - 1B.b
CW amount should equal NAIC AS Form “Operations &
Investment Exhibit” -- Part 1B, Line 1.4, Column 1.
R1.1B.a
Assumed Title Premium
Enter Total Title Written Premium Assumed from Ceding
Companies. The CW amount should equal NAIC AS Form
“Operations & Investment Exhibit” -- Part 1B, Line 1.2, Column 1.
R1.1B.b
Ceded Title Premium
Enter Total Title Written Premium Ceded to Reinsurance
Companies. The CW amount should equal NAIC AS Form
“Operations & Investment Exhibit” -- Part 1B, Line 1.3, Column 1.
R1.1C
Net of Additions & Withdrawals
Calculated: 1C.a - 1C.b
to/from Statutory Premium Reserve
R1.1C.a
Statutory Premium Reserve
Enter total Statutory Premium Reserve Additions during the year.
Aggregate write-ins for book
The CW amount should equal NAIC AS Form, “Operations &
Adjustments + Additions
Investment Exhibit” -- Part 1B, Line 2.2, Column 1 + Part 1B,
during the current year
Line 2.3, Column 1
R1.1C.b
Statutory Premium Reserve
Enter total Statutory Premium Reserve Withdrawals during the
Withdrawals During the Year
year. The CW amount should equal NAIC AS Form, “Operations
& Investment Exhibit” -- Part 1B, Line 2.3, Column 1.
R1.1D
Net Earned Title Premium
Calculated: Row 1B – Row 1C
R1.2
Escrow and Settlement Service
Calculated: Rows 2a + 2b + 2c
Charges
The CW amount should equal NAIC AS Form “Operations &
Investment Exhibit” -- Part 1A, Line 2, Column 4.
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R1.2a
Escrow
Report total fees for full escrow during the reporting period.
Exclude California Sub-Escrow Fees and/or California Unusual
Escrow Charges as set out below.
Report the entire escrow fee and do not deduct any amounts
incurred or received for work charges. Report escrow fees only
for transactions in which the reporting company was the initial
recipient of fees from the ultimate consumer.
Escrow fee is a charge for services normally necessary to
complete settlement functions in connection with a purchase/sale,
loan and/or home equity or other transaction, including all other
Settlement Charges included in the fee charged pursuant to the
Company’s rate filing.
R1.2b
Sub-Escrow
Sub-escrow refers to funds transfer for lenders in those situations
where an entity other than the reporting company is performing
other escrow activities. Sub-escrow typically occurs in Southern
California when escrow is performed by independent escrow
companies. For California Amounts Only, report only those
revenues associated with a separate and identifiable charge for
sub-escrow activities. Report sub-escrow fees only for
transactions in which the reporting company was the initial
recipient of fees.
Sub-escrow is a limited escrow function provided in
connection with the issuance of title insurance coverage which
includes the receipt of loan funds from a lender, the disbursement
of funds necessary to clear existing liens and the disbursement of
remaining funds to the principal escrow.
R1.2c
Unusual Service Revenue
Report total escrow fees from Direct Operations for unusual
services charged pursuant to Insurance Code Section 12401.8 for
California Amounts Only.
R1.3
Other Title Fees & Service
Calculated: Rows 3a + 3b + 3c + 3d
Charges
Report the amount of revenue from other service charges.
Other services are activities for which a specific charge is made -
the categories are listed below. These charges do not include
normal title premium, escrow, sub-escrow or charges for unusual
risks or unusual services. Other service charges specifically refer
to revenue from activities included in rate filings.
R1.3a
Title Examinations
Enter total fees for title examinations separate and apart from
title insurance premiums received. The CW amount should equal
NAIC AS Form “Operations & Investment Exhibit” -- Part 1A,
Line 3, Column 1
R1.3b
Searches & Abstracts
Enter total fees for search and abstract separate and apart from
title insurance premiums received. The CW amount should equal
NAIC AS Form “Operations & Investment Exhibit” -- Part 1A,
Line 4, Column 1
R1.3c
Surveys
Enter total fees for surveys. The CW amount should equal NAIC
AS Form “Operations & Investment Exhibit” -- Part 1A, Line 5,
Column 1.
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