Texas Department of Insurance

COMMISSIONER'S BULLETIN #B-0032-09

August 13, 2009

TO: ALL INSURERS WRITING TITLE INSURANCE IN THE STATE OF TEXAS AND ALL DIRECT OPERATIONS OR AGENTS THEREOF

RE: MINERALS COVERAGE

The Commissioner has adopted changes to the Basic Manual concerning minerals coverage effective November 1, 2009.  Pursuant to new Procedural Rule P-5.1, policies may contain general exceptions to minerals coverage under prescribed circumstances.  The new Form T-19.2 and T-19.3 will be available for protecting improvements and permanent buildings.   

Be advised that the adoption of Procedural Rule P-5.1 allows title policies to be issued without the typical examination anticipated under the promulgated basic rate, if a general exception to minerals is being used rather than special exceptions.  The new and amended rules and endorsements may of necessity impact the basic premium rate, as the Commissioner remains interested in the concept of a general discount or rate credit where general exceptions are used, rather than the more traditional special exceptions.  The Commissioner will hold a public hearing at a later date to consider the impact of general exceptions and to determine whether a credit or discount should be applied when a general exception is provided.
Please feel free to contact me at (512) 322-3482 should you have any questions.  

Robert R. Carter, Jr.
Deputy Commissioner – Title Division

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