                                 CODE OF VIRGINIA

TITLE INSURANCE RATES (§ 38.2-4608)

A. Title insurance risk rates shall be reasonable and adequate for the class of
risks to which they apply. Risk rates shall not be unfairly discriminatory
between risks involving essentially the same hazards and expense elements. The
rates may be fixed in an amount sufficient to furnish a reasonable margin for
profit after provision for (i) probable losses as indicated by experience within
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 the operation of a
title insurance business.

B. Policies may be grouped into classes for the establishment of rates. A title
insurance policy that is unusually hazardous to the title insurance company
because of an alleged defect or irregularity in the title insured or because of
uncertainty regarding the proper interpretation or application of the law
involved, may be classified separately according to the facts of each case.

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 or furnished, or the
cost and expenses of examinations of titles.

D. Any title insurance company may issue, publish and use price schedules for
title insurance and for any separate or related services, or schedules setting
forth one price covering the risk rate and the charges for any separate or
related services.

E. A title insurance company or title insurance agent may charge risk rates that
it negotiates with any potential insured. Such negotiated rates shall be
presumed not to be unfairly discriminatory and not to violate &#xA7; 38.2-509 if
such rates comply in all other respects with subsection A.

HISTORY: 1952, c. 317, § 38.1-728; 1986, c. 562; 2005, c. 848.