SECTION 13 - SIMULTANEOUS ISSUE OF OWNER'S
AND LOAN OR CONSTRUCTION LOAN POLICIES

  1. When an owner's policy and a loan policy are issued simultaneously covering identical property, the rate for the owner's policy shall be the applicable owner's rate. The rate on the amount of the loan policy that does not exceed the amount of the owner's policy shall be calculated at thirty percent (30%) of the loan rate. The rate on the amount of the loan policy in excess of the amount of the owner's policy shall be calculated at the full loan rate.

  2. When an owner's policy and a policy insuring a construction loan are issued simultaneously covering identical property, the rate for the owner's policy shall be the applicable owner's policy rate. The rate on the amount of the construction loan policy that does not exceed the amount of the owner's policy shall be calculated at thirty percent (30%) of the owner's rate. The rate on the amount of the construction loan policy in excess of the amount of the owner's policy shall be calculated at the full owner's rate.

Proceed to Section 14: Refinance And Subordinate Mortgage
Return to the Table of Contents