Bulletin: LA2014003

Date:
March 26, 2014
To:
All Louisiana Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - ALTA 32 Series and ALTA 33 Form and Rate Rule Changes

Dear Associates: 

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

ALTA 32-06 (Construction Loan – Loss of Priority) 02/03/11 (effective 04/01/14)

This is a new endorsement form and rate rule. This endorsement may only be issued with a Loan Policy insuring a mortgage; the proceeds of which are intended to finance the construction of improvements on the Land. The endorsement provides coverage, on an incremental basis, to a lender for loss the lender might sustain, subject to the terms, conditions and exclusions stated therein, due to the invalidity or unenforceability of the lien of the Insured Mortgage; the lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance made on or before the Date of Coverage, over any lien or encumbrance on title in the Public Records and not shown in Schedule B; and the lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance over any mechanics lien, but only to the extent that the charges for which the mechanics lien is claimed were designated for payment in the documents supporting a Construction Loan Advance disbursed by or on behalf of the Insured on or before the Date of Coverage.

The ALTA 32-06 Endorsement that becomes effective 04/01/14 will be posted to www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    25% of the Original Rate for Loan Policies for the policy to which it is attached and is in addition to the policy premium. The minimum premium for this endorsement is $250.

ALTA 32.1-06 (Construction Loan – Loss of Priority – Direct Payment) 04/02/13 (effective 04/01/14)

This is a new endorsement form and rate rule. This endorsement may only be issued with a Loan Policy insuring a mortgage; the proceeds of which are intended to finance the construction of improvements on the Land. The endorsement provides coverage, on an incremental basis, to a lender for loss the lender might sustain, subject to the terms, conditions and exclusions stated therein, due to the invalidity or unenforceability of the lien of the Insured Mortgage; the lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance made on or before the Date of Coverage, over any lien or encumbrance on title in the Public Records and not shown in Schedule B; and the lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance over any mechanics lien, but only to the extent that direct payment to the mechanic’s lien claimant has been made by the Company or by the Insured with the Company’s written approval.

The ALTA 32.1-06 Endorsement that becomes effective 04/01/14 will be posted to www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    15% of the Original Rate for Loan Policies for the policy to which it is attached and is in addition to the policy premium. The minimum premium for this endorsement is $250.

ALTA 32.2-06 (Construction Loan – Loss of Priority – Insured’s Direct Payment) 04/02/13 (effective 04/01/14)

This is a new endorsement form and rate rule. This endorsement may only be issued with a Loan Policy insuring a mortgage; the proceeds of which are intended to finance the construction of improvements on the Land. The endorsement provides coverage, on an incremental basis, to a lender for loss the lender might sustain, subject to the terms, conditions and exclusions stated therein, due to the invalidity or unenforceability of the lien of the Insured Mortgage; the lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance made on or before the Date of Coverage, over any lien or encumbrance on title in the Public Records and not shown in Schedule B; and the lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance over any mechanic's lien, but only to the extent that direct payment to the mechanic’s lien claimant has been made by the Insured or on the Insured’s behalf on or before the Date of Coverage.

The ALTA 32.2-06 Endorsement that becomes effective 04/01/14 will be posted to www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    20% of the Original Rate for Loan Policies for the policy to which it is attached and is in addition to the policy premium. The minimum premium for this endorsement is $250.

ALTA 33-06 (Disbursement) 02/03/11 (effective 04/01/14)

This is a new endorsement form and rate rule. This endorsement may be issued in connection with a Loan Policy insuring a mortgage, the proceeds of which are intended to finance the construction of improvements to the Land and which Loan Policy has been endorsed with either ALTA Form 32-06 or ALTA Form 32.1-06. This endorsement may be used to extend the Date of Coverage as to mechanic’s liens on an incremental basis and to amend Schedule A and/or Schedule B of the Loan Policy.

The ALTA 33-06 Endorsement that becomes effective 04/01/14 will be posted to www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    $100 per extension of Date of Coverage.

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.