The Texas Title Insurance Guaranty Association (“TTIGA”) is a non-profit, unincorporated association of all Texas-licensed title insurance companies. It exists to protect Texas title insurance policyholders and claimants when a title insurance company or agency fails.
TTIGA collects the policy guaranty fee from title insurance transactions to fund the title insurance agent audit function of the Texas Department of Insurance and to fund the payment of covered escrow account shortages resulting from the insolvency of a title insurance agent. Note: The policy guaranty fee has been suspended for 2018. Thus, agents will not collect policy guaranty fees in connection with any closing that occurs during the 2018 calendar year.
TTIGA also collects the guaranty assessment recoupment charge, or “GARC,” from title insurance agents and direct operations to fund claim payments and administrative expenses related to insolvent title insurance companies. Please note that the Commissioner of Insurance has ordered all Texas title agents and direct operations to collect a GARC on each owner and lender title insurance policy issued in the state, starting on January 1, 2018 and ending on December 31, 2018. Per Commissioner’s Order No. 2017-5297, dated November 30, 2017, the amount of the GARC has been set at $4.50 per policy. All GARCs must be collected at closing and remitted to TTIGA on a quarterly basis, with the first GARC remittance due on May 1, 2018. For purposes of collecting the GARC, a closing is deemed to occur when the closing documents are signed by the parties to the transaction. The GARC should be remitted to TTIGA using the 2018 TTIGA Guaranty Assessment Recoupment Charge Remittance Form, a copy of which you can find on our website’s GARC page. You can review Insurance Commissioner Kent Sullivan’s order implementing the GARC at http://www.tdi.texas.gov/orders/index.html . While the GARC remittance process will operate in a similar manner to the current Guaranty Fee collection procedure, the GARC is a different fee and is being collected for a different purpose.
Our General Counsel's office is available to answer general questions about the collection of the guaranty fee and the insolvency process, as well as specific questions concerning individual claims.
For more title insurance information, please see the following links:
Texas Title Insurance, Title Division
Information about companies in receivership:
Texas Land Title Association ("TLTA")
Texas Title Insurer Statutes
Texas Title Insurance Guaranty Act