Bulletin: NJ000027

Date:
January 14, 1998
To:
All Issuing Offices in New Jersey
RE:
Enhanced Coverage Policies and Endorsements NJRB Form Nos. 1-14, 2-11, 2-12, 5-54 and 5-55

Dear Associates:

By our memo of September 4, 1997 (NJ000025), Stewart announced its GOLD POLICIES. As you will recall these new policies provided additional coverages to both owners and lenders not available in the standard ALTA policy forms.

The New Jersey Land Title Insurance Rating Bureau has recently received approval for what it has termed "Enhanced Coverage Policies". These policies are identical to the Stewart GOLD POLICIES. First American Title Insurance Company had previously obtained approval for its Eagle Policies which are also identical to the GOLD POLICIES and the Enhanced Coverage Policies.

Stewart Title will continue to market these policies under the term GOLD POLICY and therefore, if you are requested to issue either an "Enhanced Coverage Policy" or and "Eagle Policy" you should issue the GOLD POLICY form.

Although the coverage in the Enhanced Coverage Policies is identical to that of the GOLD POLICIES, the premium rate required to be paid for the Enhanced Coverage Policies is substantially higher than the premium rate for the GOLD POLICIES. Please refer to your Rate Manual Supplement for Specific charges, but generally the premium for the GOLD POLICIES is 110% of the ALTA policy premium rate, while the premium for the Enhanced Coverage Policies is 120% of the ALTA policy premium. The Enhanced Coverage Polices are ten percent higher than the GOLD POLICES, making the GOLD POLICIES attractively priced.

Specifically the following forms were approved:

NJRB 1-14Enhanced Coverage Residential Owner's Policy
NJRB 2-11Enhanced Coverage Residential Loan Policy
NJRB 2-12Enhanced Coverage Short Form Residential Loan Policy
NJRB 5-54Conversion Endorsement to create Enhanced Coverage Residential Owner's Policy
NJRB 5-55Conversion Endorsement to create Enhanced Coverage Residential Loan Policy

The endorsement forms convert an ALTA policy form into Enhanced Coverage Policies. These endorsement forms are not to be used to convert an ALTA policy form into GOLD POLICIES.

These forms will not be printed or distributed by Stewart Title Guaranty Company as our agents are urged to use the GOLD POLICY forms. GOLD POLICIES must be reported on the standard remittance report forms and these polices should be coded as follows: Owners - 450; Loan - 451; Simultaneous Owners where loan amount is higher - 452; Simultaneous Loan where fee amount is higher - 453.

The corresponding changes to the Rate Manual are being distributed so as to keep your Rate Manual current and accurate. Please call the New Jersey State Office for additional copies. But again, the proper charges for the GOLD POLICIES are set forth in our Underwriting Bulletin of September 4, 1997, No. NJ000025. Please note that the updated pages include charges for the Balloon Loan Modification Limited Policy and the ALTA 12, Aggregation (Tie-In) Endorsement, discussed in Underwriting Bulletins NJ000028 and NJ000029 which are being distributed simultaneously with this bulletin.

An updated index and the corresponding pages for the GOLD POLICES to be included in your New Jersey Manual of Forms are available through the New Jersey State Office. Please make sure you update all Forms Manuals and Rate Manuals in your office with these pages.

If you have any questions pertaining to these forms, please call the New Jersey State Office.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
NJ000025 Gold Policies; Underwriting Guidelines
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
STG GOLD Comprehensive Protection Loan Policy (East Coast) 1997
 
STG GOLD Comprehensive Protection Owner's Policy (East Coast) 1997