Bulletin: CT2016004

Date:
November 17, 2016
To:
All Connecticut Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - ALTA Expanded Coverage Residential Loan Policy - Current Assessments (04-02-15)

Dear Associates:

We have previously advised you of new forms available effective November 9, 2016, in our recent Bulletin MU2016006 with a number of changes made to our Rate Manual based upon the approval by the Connecticut Department of Insurance of certain new ALTA Policies, Commitment, and Endorsements.

As Bulletin MU2016006 described different forms available for expanded coverage residential loan policies, the forms summarized below are the only forms appropriate for use in Connecticut:

  • ALTA Expanded Coverage Residential Loan Policy - Current Assessments (04-02-15);
     
  • ALTA Short Form Expanded Coverage Residential Loan Policy - Current Assessments (04-02-15);

These policies replace all prior versions of the ALTA Expanded Coverage Residential Loan Policy and the ALTA Short Form Expanded Coverage Residential Loan Policy.

Since Connecticut affords a 9 month priority to assessments/common charges due common interest community associations, the changes in these policies that relate to priority coverage of loans dictates which forms are appropriate for our state. They incorporate the following endorsements for common interest communities, which are the only forms appropriate for use in Connecticut policies:

* ALTA Endorsement 4.1-06 (Condominium), if a condominium unit is referred to in the description of the Land;

ALTA Endorsement 5.1-06 (Planned Unit Development);

By incorporation of the above endorsements, ALTA Expanded Coverage Residential Loan Policy - Current Assessments (04-02-15) only insures against loss or damage if an association's charges and assessments are due and unpaid at Date of Policy.

Accordingly, the ALTA Expanded Coverage Residential Loan Policy - Current Assessments (04-02-15) is the only expanded coverage loan policy form appropriate for use in Connecticut. It may be issued in Connecticut, provided all association charges and assessments are paid to date.

You may issue the ALTA Short Form Expanded Coverage Residential Loan Policy - Current Assessments (04-02-15) version if you comply with the requirements for issuance of the ALTA Expanded Coverage Residential Loan Policy - Current Assessments (04-02-15).

As a reminder, other forms should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.

Agents using AIM+ may contact PropertyInfo Customer Care to get the new form changes implemented in your system. For policy production using other systems contact your Stewart sales representative for questions on the updated forms. 

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.