Date: June 12, 2007

Please be advised that the North Carolina Title Insurance Rating Bureau (NCTIRB) has filed with the North Carolina Department of Insurance a new comprehensive rate structure to be effective July 1, 2007.

The purpose of the comprehensive rate structure is to simplify title insurance rates in North Carolina principally by eliminating special rates to parties other than homeowners, effectively creating a revenue neutral filing. The Bureau was assisted by Demotech, Inc., an actuarial consulting and financial analysis firm in developing these rates.

The North Carolina title insurance rates are applicable to underwriters who adopt them and apply to any title insurance policy issued that insures property situated in North Carolina, regardless of where the title insurance policy is processed.

Members should note that these filed rates are comprehensive and encompass all the authorized premiums for title insurance in North Carolina. These rates are subject to the regulation of the NC Department of Insurance.

Minimum Premium
The minimum premium for Regular Rates and Reissue Rates shall be $50.00

Regular Title Insurance Rates for a Lender’s and/or an Owner’s Policy (Per Thousand)

Up to $100,000	$2.00
100,001 to 500,000	1.50
500,001 to 2,000,000	1.00
2,000,001 to 7,000,000	0.75
7,000,001 and above	0.50

ALTA Homeowner’s Policy of Title Insurance and ALTA Expanded Cover- age Residential Loan Policy
The ALTA Homeowner’s Policy of Title Insurance and ALTA Expanded Coverage Residential Loan Policy are available for qualifying improved one-to-four family residences at the applicable rate plus an additional 20% of the regular rate.

Simultaneous Issue of Owner’s, Leasehold and Loan Policies
In all loan transactions, one or more Loan policies may be issued simultaneously with an Owner’s policy covering identical property for a single premium. All title insurance rates apply to this category. When policies are issued insuring both a first deed of trust and junior deeds of trust simultaneously with an Owner’s Policy, the rate is determined by adding the amounts of the deeds of trust and computing the result by the rate applicable to the total amount of exposure. The effective dates of the policies do not have to be the same in order to qualify for simultaneous issue; however, if effective dates are not the same, such policies must have been able to be issued on the same day. The total premium charge is based on the policy with the higher coverage.

When a simultaneous issuance includes an ALTA Homeowner’s Policy and/or ALTA Expanded Loan Policy, the premium charge will be the higher of the two rate calculations.

Reissue
When a policy has been issued on Identical Land within fifteen (15) years, the rate shall be 50% of the Regular Rate up to the amount of the previous policy and Regular Rates shall apply to amounts in excess of the prior policy amount. The previous policy or HUD-1 must be provided to the Insurer to receive this Reissue Rate.

When a policy has been issued to a Subdivider/Developer/Builder within fifteen (15) years, the rate shall be 50% of the Regular Rate up to the sales price of the individ- ual lot, unit, or tract subdivided from the land originally insured. The previous pol- icy or HUD-1 must be provided to the Insurer to receive this Reissue Rate.