Bulletin: OH2016001

Date:
June 30, 2016
To:
All Ohio Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New Forms and Rates Approved

Dear Associates:

The Ohio Title Insurance Rating Bureau has approved the following new Forms and Rates for use in Ohio, effective July 1, 2016:

ER-46 OTIRB OH-46 OPTION (ALTA FORM 46) 

This endorsement, subject to its terms, conditions and exclusions, insures against loss or damage sustained by the Insured by reason of A) any defect in the execution of the Option resulting from: i. forgery, incompetency, incapacity, or impersonation of the Optionor; ii. failure of the Option or to have authorized the Option; or iii. the Option not being properly signed, witnessed, sealed, acknowledged, notarized, or delivered by the Optionor; and B) any right to acquire an estate or interest in the Option Parcel granted to another person in a document recorded in the Public Records at Date of Policy. 

The rate for this endorsement is $500.

Revisions to the following Form were made and are now approved for use. Please note that additions made to this form are merely technical in nature and do not otherwise change the coverage:

ER-15.2 OTIRB OH-15.2 NONIMPUTATION – PARTIAL EQUITY TRANSFER (ALTA FORM 15.2) 

This endorsement may be issued with a new Owner’s Policy in a transaction where an incoming partner, member, or shareholder (new equity holder) is purchasing an equity interest in the entity that holds title to the land and the new equity holder is requesting its own Owner’s Policy which excludes liability for the undisclosed pre-existing knowledge, acts or inaction of the entity and its other partners, members, or shareholders. 

The rate for this endorsement is 10% of the Original Rate for Owners Policies as set forth in Rule PR-1 hereof, for the policy to which it is attached and is in addition to the policy premium. The minimum rate for this endorsement is $250.

The following Rates/Rules have been revised:

ER-14 OTIRB OH-14 FUTURE ADVANCE – PRIORITY (ALTA FORM 14) 

This endorsement provides coverage to a lender for loss the lender might sustain in the event a future advance does not have the same priority as the original mortgage as though the advance had been made at the time the mortgage was made. It also covers the lender’s loss if each advance does not create a valid and enforceable lien on the title secured by the insured mortgage and the lender’s loss sustained resulting from invalidity or unenforceability of the insured mortgage because of re-advance and repayments of the mortgage, lack of an outstanding indebtedness before any advance, and failure of the lender to comply with the requirements of state law to secure the advances. It also includes ALTA Form 6 endorsement coverage. 

The rate for this endorsement is 25% of Original Rate for a Loan Policy as set forth in Rule PR-8 calculated at the first dollar of liability, for the revolving, future advance portion, if any. The rate shall be 10% of the Original Rate for a Loan Policy as set forth in Rule PR-8 calculated at the first dollar of liability, for the non-revolving, future advance portion, if any. If the mortgage contains both a revolving, future advance and a non-revolving, future advance provision, the rate for the endorsement is the sum of the rates as set forth above. 

In the event that the revolving, future advance portion of the mortgage insured by the policy to which this endorsement is attached is intended to finance the construction of improvements on the Land, an additional 10% of the Original Rate shall be added to the 25% rate set forth above. 

The minimum rate for this endorsement is $250.

ER-14.1 OTIRB OH-14.1 FUTURE ADVANCE–KNOWLEDGE (ALTA FORM 14.1) 

This endorsement is very similar to the Form 14 endorsement but is available for loans under which the loan documents provide that the lender has the option of not making an advance for any reason. The coverage is identical to the Form 14 except that there is an additional exclusion from coverage for loss due to intervening liens of which the lender has actual knowledge at the time of making an advance. 

The rate for this endorsement is 20% of Original Rate for a Loan Policy as set forth in Rule PR-8 calculated at the first dollar of liability, for the revolving, future advance portion, if any. The rate shall be 5% of the Original Rate for a Loan Policy as set forth in Rule PR-8 calculated at the first dollar of liability, for the non-revolving, future advance portion, if any. If the mortgage contains both a revolving, future advance and a non-revolving, future advance provision, the rate for the endorsement is the sum of the rates as set forth above. 

In the event that the revolving, future advance portion of the mortgage insured by the policy to which this endorsement is attached is intended to finance the construction of improvements on the Land, an additional 10% of the Original Rate shall be added to the 20% rate set forth above. 

The minimum rate for this endorsement is $250.

NOTE: Please review the rate manual for specific examples showing how to calculate premium for the above two Rates.

The Ohio Rate Manual effective July 1, 2016, will be published shortly. The new endorsement and form approved for use in Ohio are set forth below.

Agents please contact PropertyInfo Customer Care or your title production software vendor to get the new rates/forms changes implemented in your system.  

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.