Guaranty Assessment Recoupment Charge

The Guaranty Assessment Recoupment Charge (GARC) fee that you've been collecting throughout 2018 expired Dec. 31, 2018.

Note: The policy guaranty fee has been reinstated effective May 1, 2019. The amount of the guaranty fee has been set at $2.00 per policy.

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On Nov. 30, 2017, the TDI Commissioner issued an order setting a GARC fee of $4.50 to be collected on each owner and loan policy beginning Jan. 1, 2018 through Dec. 31, 2018.

In early 2013, the Texas Title Insurance Guaranty Association (TTIGA) assessed Texas underwriters an amount based on estimates of the total claims liability of Southern Title, a regional underwriter that was licensed to do business for several years in Texas and later declared bankruptcy. This assessment is essentially a loan from the underwriters to TTIGA to provide funds to pay the claims of the failed underwriter. There is a mechanism in place, both in statute (Sec. 2602.210) and in regulation in P-30, for the underwriters to recoup these funds that have been assessed.  

News

TLTA coverage and more information about this issue.

Reference

Additional information and resources about this issue, including rules, forms, websites or other documents.

Texas Title Insurance Guaranty Association

Website

Orders & Notices

• TDI Commissioner’s Order
  Nov. 30, 2017
• TDI Commissioner’s Order
  Dec. 12, 2013

Rules & Statutes

Statute for funds recoupment
Regulation for funds recoupment