Bulletin: NM2014004

Date:
September 03, 2014
To:
All New Mexico Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New Forms of Closing Protection Letters Promulgated

Dear Associates:

Pursuant to the authority granted in Section 59A-30-4 NMSA 1978, the Office of the Superintendent of Insurance (OSI) held the biennial rate and non-rate hearing in Santa Fe on November 4-8, 2013. The final orders in the rate matter and non-rate matters have been issued and the regulations have been published in the New Mexico Register, as required by law.  

2011 Versions of ALTA Closing Protection Letters Adopted (Effective August 1, 2014)

Sections 13.14.18.103 and .104 of the NMAC were amended to decertify the existing forms of closing protection letters and promulgate in their stead the ALTA forms (revised 12/1/11). Note that these are not the most current ALTA forms, which were last revised by ALTA on 4/2/14. Consistent with New Mexico law, these newly promulgated forms delete the arbitration provisions found in the corresponding ALTA forms. The adopted forms are the Closing Protection Letter - Single Transaction, used solely for a specific transaction (NM 81), and the Closing Protection Letter - Multiple Transactions (NM 81.1), used as a master closing protection letter to cover any transaction closed by the title insurance agent on behalf of the lender recipient of the closing protection letter.

The automated Stewart CPL generating system has been updated to reflect these changes. Only the single-transaction form is available on the system. If you receive a request for a multiple-transaction form, please contact your underwriter.

Modifications to CPL Forms

Please forward all requests to reflect a different amount for a transaction that exceeds $5 million to ICLAdmin@stewart.com. Please note that all requests for closing protection coverage documents on transactions over $5 million must be accompanied by a completed “overlimits approval” form approved and executed by a local underwriter.

Closing Protection Coverage documents may be issued ONLY by use of the Stewart ICL Website: https://www.stewarticl.com. Closing Protection Coverage documents may not be (1) modified, (2) prepared by an Issuing Agent on its Letterhead or in any other format, or (3) typed, computer generated, or signed by an Issuing Agent. If you have questions about completing the CPL form template on the website, please contact ICLAdmin@stewart.com.

The Stewart ICL Website has the most recent Closing Protection Coverage documents approved for issuance and maintains a record of the Closing Protection Coverage documents issued.

The Stewart ICL Website generates the Closing Protection Coverage documents only for current authorized Issuing Agents. The Closing Protection Coverage document is generated in HTML format, which is to be printed and then sent to the requesting lender.

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:
STG Request for Approval to Issue Overlimits (Large) Policy or Extra Hazardous Coverage