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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA - page 5 / 38

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The provisions of this Manual are binding upon all members and subscribers of TIRBOP and their agents and must be used on and after the effective date hereof unless a specific deviation from this Manual has been filed by an individual member or subscriber company with, and approved by, the Pennsylvania Insurance Department.

Section 2.1 of the Manual, as amended through August 1, 2005, requires that “[a]ll Charges for title

insurance coverage provided by the approved policies and endorsements must be made as set forth

in this Manual.”

Title insurance companies and title agents calculate a prospective purchaser’s rate depending

on the amount of the loan and the last date on which title insurance was purchased for the property.

(Id. at ¶27.) There are three possible rates - Basic Rate, Reissue Rate, and Refinance Rate. The

default Basic Rate is the highest allowable rate for title insurance and is described in Section 5.50

of the Manual. (Id. at ¶28.) Certain purchasers, however, qualify for a special discounted rate if title

insurance had been purchased for the property within the previous ten (10) years. (Id.) Depending

on when the purchaser previously bought title insurance, the purchaser is eligible for the Reissue

Rate (90% of the Basic Rate) or the Refinance Rate (80% or 70% of the Reissue Rate). (Id. at ¶ ¶29-

31.)

Prior to August 1, 2005, under the TIRBOP Manual, purchasers of title insurance had the

burden to provide evidence of an earlier title insurance policy in order to trigger the special

discounted rate. (Id. at ¶32.) The Manual was amended in 2005 and placed the burden on the title

insurer or its agent to conduct a title search on the property, which included an investigation of the

existence of prior title insurance, and to issue the insurance rate based on the findings. Plaintiffs

argue that as of August 1, 2005, the purchaser no longer had the burden to provide affirmative

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