Bulletin: MA2015002

Date:
December 30, 2015
To:
All Massachusetts Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - Deletion of Natural Person Limitation Endorsement – Enhanced Policy Protection Owner Policy

Dear Associates:

We frequently receive inquiries regarding insuring entities which are not “Natural Persons” (e.g., limited liability companies, closely held corporations or partnership entities) for purchasers of 1-4 residential family properties under Enhanced Policies. Currently, there is a limitation under the Enhanced Policy which limits coverage to a “Natural Person” which is defined as “a human being, not a commercial or legal organization or entity. Natural Person includes a trustee of a Trust even if the trustee is not a human being.” The attached Deletion of Natural Person Limitation Endorsement may be used when a purchaser of 1-4 family residential property desires to take title in the form of a closely held corporation, limited liability company or partnership entity for estate planning purposes and the Insured named in Schedule A of the Policy will be such entity.   

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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:
MA Deletion of Natural Person Endorsement – Enhanced Policy