Bulletin: LA2014004

Date:
March 27, 2014
To:
All Louisiana Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - ALTA Expanded Coverage and Short Form Expanded Coverage

Dear Associates: 

The Louisiana Department of Insurance has approved a Form Filing made by LATISSO effective April 1, 2014, for the policies referenced below.

ALTA Expanded Coverage Residential Loan Policy 07/26/10 – LA (effective 04/01/14) and Schedule A - ALTA Expanded Coverage Residential Loan Policy 07/26/10 – LA (effective 04/01/14)

Background:  LATISSO revised the ALTA Expanded Coverage Residential Loan Policy 07/26/10 back in September 2012 to make changes to the language immediately following Section 28 of the Covered Risks relating to the incorporation of and the payment of premium for several endorsements to the policy. Accordingly, Schedule A was amended immediately following Paragraph 5 to provide a “checkbox” style listing of those endorsements so those for which premium was paid could be indicated.

The ALTA Expanded Coverage Residential Loan Policy 07/26/10 – LA has been revised by LATISSO for a second time and this second revision becomes effective 04/01/14. Please begin using the ALTA Expanded Coverage Residential Loan Policy 07/26/10 – LA (effective 04/01/14) which has the M-3151 prefix in connection with closings that take place on or after 04/01/14. It replaces the M-3131 policy jacket. Its accompanying Schedule A has also been revised and is posted to www.stewart.com/louisiana in the Forms and Policy Info section in word format if needed.  

This second round of revisions were made as a result of recent changes to the ALTA 9 series of endorsements. The 04/01/14 revision removes the ALTA 9.3-06 endorsement from the listing of endorsements found in the language immediately following Section 28 of the Covered Risks and also removes the ALTA 9.3-06 from the “checkbox” style listing of endorsements on Schedule A.  

The ALTA 9-06, ALTA 9.3-06, ALTA 9.6-06, and ALTA 9.7-06 endorsements may be issued with the ALTA Expanded Coverage Residential Loan Policy 07/26/10 – LA (effective 04/01/14) upon payment of the appropriate premium and subject to underwriting requirements in a traditional endorsement format on a separate page.

This updated ALTA Expanded Coverage Residential Loan Policy 07/26/10 - LA (effective 04/01/14) will be available in your system and will have the policy prefix of M-3151.  

This updated Schedule A that becomes effective 04/01/14 will be posted to www.stewart.com/louisiana in the Forms and Policy Section. Please contact your software support team for assistance with set up.

Rate has not changed and remains at 110% of the Original Rate for Loan Policy plus the premium for any endorsement(s) added separately or incorporated into the policy at the rate applicable for such endorsement(s).

ALTA Short Form Expanded Coverage Residential Loan Policy 07/26/10 - LA (effective 04/01/14) and Schedule A - ALTA Expanded Coverage Residential Loan Policy 07/26/10 – LA (effective 04/01/14)

Background:  LATISSO revised the ALTA Short Form Expanded Coverage Residential Loan Policy 07/26/10 back in September 2012 to make changes to the language just above Schedule B heading that makes reference to the incorporation of the American Land Title Association Expanded Coverage Residential Loan Policy – 07/26/10 and to provide a “checkbox” style listing of endorsements to Schedule A so those for which premium was paid could be indicated.

The ALTA Short Form Expanded Coverage Residential Loan Policy 07/26/10 - LA has been revised by LATISSO for a second time and this second revision becomes effective 04/01/14. Please begin using the ALTA Short Form Expanded Coverage Residential Loan Policy 07/26/10 - LA (effective 04/01/14) which has the U-3152 prefix in connection with closings that take place on or after 04/01/14. It replaces the U-3132 policy jacket. Its accompanying Schedule A has also been revised and is posted to www.stewart.com/louisiana in the Forms and Policy Info section in word format if needed.  

Because the “short form” incorporates by reference the terms, exclusions and conditions of the “long form”, the “short form” has been revised as a result of the changes to the “long form” detailed above. The 04/01/14 revision amends the language just above the Schedule B heading to reference the American Land Title Association Expanded Coverage Residential Loan Policy 07/26/10 - LA (effective 04/01/14) and also removes the ALTA 9.3-06 from the “checkbox” style listing of endorsements on Schedule A.

The ALTA 9-06, ALTA 9.3-06, ALTA 9.6-06, and ALTA 9.7-06 endorsements may be issued with the ALTA Expanded Coverage Residential Loan Policy 07/26/10 – LA (effective 04/01/14) upon payment of the appropriate premium and subject to underwriting requirements in a traditional endorsement format on a separate page.

This updated ALTA Short Form Expanded Coverage Residential Loan Policy 07/26/10 - LA (effective 04/01/14) will be available in your system and will have the policy prefix of U-3152.

This updated Schedule A that becomes effective 04/01/14 will be posted to www.stewart.com/louisiana in the Forms and Policy Section. Please contact your software support team for assistance with set up.

Rate has not changed and remains at 110% of the Original Rate for Loan Policy plus the premium for any endorsement(s) added separately or incorporated into the policy at the rate applicable for such endorsement(s).

Questions relating to this bulletin may be directed to Louisiana Underwriting Personnel at (800) 209-4675 or Stewart Legal Services.

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