Welcome Independent Title Agents P-24 Proposed Changes Online Meeting September 25, 2007 9:30 a.m. – 11:00 a.m.

1. Welcome Independent Title AgentsP-24 Proposed ChangesOnline MeetingSeptember 25, 2007 9:30 a.m. – 11:00 a.m. Attendee Dial-in Number 605-772-3434 Access Code: 490-504-045

3. Guests • Bob Philo • Western Region Counsel, Southern Title Insurance Corp. • Terry Grantham • Owner, West Texas Title Company • Rep. Drew Darby • President, Surety Title Company • Gregg Lyssy • President, Mission Title Company

4. Agenda • Antitrust Statement • P-24 – Background • Pro & Cons - TLTA Recommendation • Common Ground • Goals: • Provide Agents with information about P-24 • Answer Agents questions • Provide Contact information for TDI

5. Antitrust Compliance Statement TitlewithTexans.com Online Meeting September 25, 2007 The antitrust laws of the United States are intended to prevent any cooperative attempt to control, interfere with, or restrict free trade. The object of this meeting is to share general information regarding upcoming Rate & Rules Hearing at the Texas Department of Insurance and other related business. This information is to be used solely for the formation of individual business judgments based upon one’s own knowledge and experience. It does not imply in any manner that any business relationship be conducted or modified in any way. There is to be no discussion of prices or contract terms. Future plans, policies, or future intentions of attendees may not be reported or discussed. Discussion of business practices and policies must be general in nature. No agreements of understandings may be made with respect to any customer or client, or the terms, prices or policies of doing business. Attendees shall not give advice or otherwise attempt to influence the independent judgment of other attendees in using the information discussed today to make business decisions.

6. Diversity of Interest • Agents in small Counties • Large & small Agents in large Counties • ABA’s – Builder/Real Estate/Lender owned title agencies • Agencies providing statewide services for Online Lenders – “Internet” orders • Underwriter Direct Operations

7. Background of P-24 Proposal • Agenda Item #2006-67 Filed by: Texas Department of InsuranceDate filed: Sept.7, 2004 Amends: Procedural Rule P-24 to set reasonable percentage rates for payment of services for furnishing title evidence and title examination and to remove language in the rule that often prevents urban and rural agents from receiving the same amount of premium for the same work. TLTA Position: OPPOSE Agenda Item #2006-65AS AMENDED BY JOHN KINGAgenda Item #2006-65Filed by: Sierra Title Group & Sierra Title Insurance Guaranty Company, Inc. Amends: Procedural Rule P-24 to provide restrictions on a title insurance company, agent, or direct operation regarding written agreements that deviate from the premium split set forth in P-24. TLTA Position: SUPPORT as Amended

8. TLTA, ITAT, METRO & Sierra TitleCompromise (Prior to 9/5 Hearing) • If policy amount is $125,000 or less • 100% for evidence or evidence/exam • 0% for closing or closing/exam • Except if in contiguous counties with prior written agreement made not less than 90 days in advance • If policy amount is more than $125,000 • 50% for evidence or exam • 50% for closing or closing/exam • Unless prior written agreement made not less than 90 days in advance Note: All percentages are after payment to the Underwriter

9. Commissioner’s Charge During the September 5, 2007 Rules Hearing Commissioner Geeslin urged the industry to Amend P-24 and provide him with input on how to best change the Rule to address concerns of ALL industry members. The Commissioner instructed those present to consider that parties to premium splits should: • Earn an adequate rate of return • Fees paid should be commensurate with services rendered • Consider who is at the greatest risk of being harmed • Find a Long-term solution, not just a short-term fix

10. TLTA, ITAT, METRO & Sierra Title Proposal (Following 9-17-2007 TLTA Board Meeting) New TLTA/ITAT/Metro Agent/Sierra Title Position: Accepts Sierra Title’s amended agenda item [2006-65] subject to the following changes: 1.  Change the percentages for policies $125,000 and under to 90% and 10% 2.  Include intra-county transactions as well as contiguous county transactions 3.  30 day payment clause tied to date of filing 4.  Increase the insured amount from $125,000 to $150,000 after 5 years 5.  Include lawyers licensed as escrow officers in the rule

11. Comments • Forget the PWA because the big companies will just call the rural companies as soon as this passes and strong arm them to get PWA how they want it anyway. Pick a number and take the negotiation out of it so everyone is on the same page. Also make better definitions of the difference between "title evidence" and "title examination" because nobody seems to understand the difference. Also make it clear that issuing the policy does not give you any more percentage because too many people think that entitles them to get more but the rule does not mention anything about that.

12. Comments (cont.) • When it comes to splits, I always get the short end of the stick. The big city agents want the commitment RUSH! RUSH! RUSH! and then they take 6 to 8 months to pay the split, if at all. When the TDI was called to ask how to handle the nonpayment, I was told that they don't like to get mixed up with financial areas. There is no reason for Houston or Dallas to want 60% to 80% for closing, when they don't have to keep up a plant.

13. Guests • Bob Philo • Western Region Counsel, Southern Title • Terry Grantham • West Texas Title Company • Rep. Drew Darby • President, Surety Title Company • Gregg Lyssy • President, Mission Title Company

14. Contact TDI Comment directly to the Commissioner by sending to: Gene C. Jarmon, General Counsel and Chief Clerk Texas Department of Insurance William P. Hobby Jr. State Office Building P. O. Box 149104 Austin 78714-9104 by 5 p.m. Oct. 5, 2007.