Bulletin: LA2018001

Date:
April 16, 2018
To:
All Louisiana Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New and Revised ALTA Form and Rates Effective May 1, 2018

Dear Associates:

The Louisiana Department of Insurance has approved a Rate and Form Filing made by LATISSO effective May 1, 2018. The changes are as follows:

ALTA Short Form Commitment for a Short Form Residential Loan Policy - Modified LA Adopted 12-01-17

The ALTA Short Form Commitment for a Short Form Residential Loan Policy - Modified LA 12-01-17 has been created to serve as an abbreviated form of the ALTA Commitment for Title Insurance - LA 08-01-16 only when committing to issue a short form residential loan policy. Please note that the "Notice" provision should be included in the form.

  • It may be issued only when committing to issue the ALTA Short Form Residential Loan Policy 06-16-07 (a/k/a Standard Coverage Short Form Loan Policy) or the ALTA Short Form Expanded Coverage Residential Loan Policy - LA 07-26-10 (a/k/a Expanded Coverage Short Form Loan Policy) 
  • It is important to confirm that issuance of a short form residential loan policy is allowed by underwriting guidelines prior to issuance of this ALTA Short Form Commitment for Short Form Residential Loan Policy - Modified LA 12-01-17. The associated property must be improved residential property as of the effective date. 
  • The accompanying Schedules are specific to the issuance of the short form residential loan policies only and are designed to streamline the presentation of the data required in the short form residential loan policies. 
  • The terms and conditions of the ALTA Commitment for Title Insurance - LA 08-01-16 are incorporated by reference. 
  • This ALTA Short Form Commitment for a Short Form Residential Loan Policy - Modified LA 12-01-17 may not be issued in connection with committing to issue any type of owner policy or any type of long-form loan policy.

The ALTA Short Form Commitment for a Short Form Residential Loan Policy Modified LA 12-01-17 has been assigned the form number LA009UN. It should be noted that a serial number is not required for this Commitment form. The Jacket and Schedules that accompany it will be posted to www.stewart.com/louisiana in the Forms and Policy Section. Please contact your individual software support group for assistance with set up within your system.

Rate: No Charge

ALTA 28.3-06 Encroachments - Boundaries and Easements - Land Under Development 12-01-16

This is a new endorsement. It may be issued with either an Owner Policy or a Loan Policy.  Subject to its terms, conditions, and exceptions, it insures the Insured against loss or damage sustained by reason of:

  • An encroachment of an Improvement or Future Improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement;  
  • An encroachment of any Improvement located on adjoining land onto the Land at Date of Policy;  
  • Enforced removal of any Improvement or Future Improvement located on the Land as a result of an encroachment by the Improvement or Future Improvement onto any portion of the Land subject to any easement;  
  • In the event that the owners of the easement shall, for purposes of exercising the right of use or maintenance of the easement, compel removal or relocation of the encroaching Improvement or Future Improvement; or  
  • Enforced removal of any Improvement or Future Improvement located on the Land that encroaches onto adjoining land.

The ALTA 28.3-06 Encroachments - Boundaries and Easements - Land Under Development 12-01-16 has been assigned the form number E-9228.  It will be posted to www.www.stewart.com/louisiana in the Forms and Policy Section. Please contact your individual software support group for assistance with set up within your system.

Rate is: When Issued with an Owner Policy - $700 per encroachment.

When Issued with a Loan Policy - $525 per encroachment.

ALTA 4-06 (Condominium - Assessments Priority) 12-01-16 (effective 05-01-18)

This is a revision to the ALTA 4-06 endorsement version of 02-03-10 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9242. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format.  Please contact your individual software support group for assistance with set up within your system.

Rate has not changed and remains at $50.

ALTA 4.1-06 (Condominium - Current Assessments) 12-01-16 (effective 05-01-18)

This is a revision to the ALTA 4.1-06 endorsement version of 10-16-08 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9318. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed and remains at $50.

ALTA 5-06 (Planned Unit Development - Assessments Priority) 12-01-17 (effective 05-01-18)

This is a revision to the ALTA 5-06 endorsement version of 02-03-10 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9243. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format.  Please contact your individual software support group for assistance with set up within your system.

Rate has not changed and remains at $50.

ALTA 5.1-06 (Planned Unit Development - Current Assessments) 12-01-17 (effective 05-01-18)

This is a revision to the ALTA 5.1-06 endorsement version of 10-16-08 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9320. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format.  Please contact your individual software support group for assistance with set up within your system.

Rate has not changed and remains at $50.

ALTA 18.1-06 (Multiple Tax Parcel - Easements) 12-01-16 (effective 05-01-18)

This is a revision to the ALTA 18.1-06 endorsement version of 06-17-06 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9364. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed and remains at $75.

Rate Rule PR-3 Commitment

This is a revision to the existing PR-3 Commitment Rate Rule. The purpose is to have consistency with the language contained in the ALTA Commitment for Title Insurance - LA 08-01-16. In the first line of Rate Rule PR-3, “a contract” was replaced with “an offer”.

Rate Rule ER-11.2 Mortgage Modification with Additional Amount of Insurance (ALTA Form 11.2)

This is a revision to the existing ER-11.2 Rate Rule. The purpose is to have consistency with the language contained in the Rate Rules for all of the ALTA 11 series of endorsements by removing the word “principal” from the second paragraph of this rate rule.  

Questions relating to this or other Bulletins may be directed to Louisiana Underwriting Personnel at (800) 209-4675 or Stewart Legal Services. 

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.

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.