Bulletin: UT2013003

Date:
October 07, 2013
To:
All Utah Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - Utah Rates and Forms Update

Dear Associates:

Effective Date: Wednesday October 2, 2013

Changes have been made to the Rate Manual in the following Sections: Section B-5 OWNER’S POLICIES at Paragraphs: A, C, E.1, E.2, E.4, and F; at Section B-12 REISSUE RATE; at Section B-8 GUARANTEES.

1.   Section B-5 Paragraph A is modified as follows:

A. Standard Coverage Owner’s Policy

A standard ALTA 2006 owner’s policy is the policy to be issued unless another form of owner’s policy is requested in an application for title insurance. The charge for a Standard Coverage ALTA 2006 owner’s policy is 90% of the Basic Schedule of Charges.

This modification modifies the charge of 100% to 90%.

2.   Section B-5 Paragraph C is modified as follows:

C. 1031 Reverse Exchange

The charge for an owner’s policy issued to a qualified intermediary in connection with a 1031 reverse exchange is 90% of the Basic Schedule of Charges. The charge for the owner’s policy issued to the exchanger is 30% of the Basic Schedule of Charges provided that title to the property is conveyed to the exchanger within 180 days from the date of the original policy. In lieu of two separate policies, one single policy and commitment may be issued in connection with a reverse exchange at 110% of the Basic Schedule of Charges provided that within 180 days from the commitment the Insured property is conveyed to the exchanger. Any increase in the amount of liability will be charged the applicable Basic Schedule of Charges.

This modification modifies the charge of 100% to 90%.

3.   Section B-5 Paragraph E.1 is modified as follows:

E. Simultaneous Issue

1) Standard Coverage Owner’s and Standard Coverage Lender’s Policies:

The charge for an ALTA Standard Coverage owner's policy is 90% of the Basic Schedule of Charges and simultaneous ALTA Standard lender’s policy is 20% of the Basic Schedule of Charges.

This modification modifies the charge of 100% to 90%.

4.   Section B-5. Paragraph E.2 is modified as follows:

E. Simultaneous Issue

2) Standard Coverage Owner’s and Extended Coverage Lender’s Policies:

The charge for an ALTA Standard Coverage owner's policy is 90% of the Basic Schedule of Charges and a simultaneous ALTA Extended Coverage lender policy is 60% of the Basic Schedule of Charges.

This modification modifies the charge of 100% to 90%.

5.   Section B-5. Paragraph E.4 is modified as follows:

E. Simultaneous Issue

4) Multiple Owner’s Policies:

Multiple owner's policies may be written as a single risk. The Insured, however, receives a separate policy. The charge for the issue of an owner’s policy insuring a single risk covering more than one Insured is 90% of the Basic Schedule of Charges for the single risk Insured plus a Surcharge of 30% of the Basic Schedule of Charges for each additional interest Insured under the individual and separate policy.

This modification modifies the charge of 100% to 90%.

6.   Section B-5, Paragraph F is modified as follows:

F. Re-write of Installment Purchase Contract

An Insured under an owner’s policy who acquired less than fee through an installment purchase contract may obtain an updated title policy provided that the purchase contract has been fully satisfied including the recorded deed conveying title to the purchaser. The charge for an updated owner’s policy upon satisfaction of a purchase contract is 30% of the Basic Schedule of Charges if the policy is rewritten prior to the expiration of ten (10) years from the original policy. The charge for an updated owner’s policy issued after the expiration of ten (10) years from the original policy is 90% of the Basic Schedule of Charges.

This modification modifies the charge of 100% to 90%.

7.   Section B-12 REISSUE RATE is deleted. The Reissue Rate is no longer applicable.

8.   The introductory paragraph from Section B-12 is moved and made a part of Section B-8 GUARANTEES as a new Paragraph F.

9.   Paragraph C of Section B-12 is retained and renamed and renumbered to become a part of Section B-8 GUARANTEES as new Paragraph F of said section B-8. There is no modification to the rate or charge. There is only a relocating and modifying of the introductory paragraph from Section B-12 and the relocating of said Paragraph C of Section B-12 to said Section 8 as a new Paragraph F.

As such, Section B-8 GUARANTEES will read as follows:

F. Reissue Rate on a Guarantee

A reissue rate from a prior guarantee may be issued at 60% of the Basic Schedule of Charges if the new policy is issued within two (2) years from the previous guarantee.

A reissue rate may be provided regardless of whether the previous policy was charged the reduced reissue rate or the full rate. Stewart Title is under no obligation to seek or make a determination of the existence of a previous policy.

These changes have been made to the Rate Manual which can be found at https://www.stewart.com/utah.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

 

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

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:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None