Bulletin: DE2011003

Date:
July 26, 2011
To:
All Delaware Issuing Offices
RE:
Revisions to Delaware Rating Manual and New Endorsements Effective July 15, 2011

Dear Associates:

The Delaware Title Insurance Rating Bureau ("DTIRB") submitted to the Delaware Department of Insurance three (3) new policies and five (5) new endorsements.  The forms were approved and will be effective July 15, 2011.  

The new endorsements are as follows:

DTIRB 47 Easement – Damage or Enforced Removal (ALTA 28-06) (Loan Policy) Charge - 10% of the applicable rate. This endorsement insures against loss or damage sustained by reason of damage to an existing building located on the land from the exercise of the granted or reserved rights of use or maintenance of an easement excepted in Schedule B of the policy.

DTIRB 48 Easement – Damage or Enforced Removal (ALTA 28-06) (Owner’s Policy) Charge – 25% of the applicable rate. This endorsement insures against loss or damage sustained by reason of damage to an existing building located on the land from the exercise of the granted or reserved rights of use or maintenance of an easement excepted in Schedule B of the policy.

DTIRB 49 Interest Rate Swap – Additional Interest (ALTA 29.1-06) (Loan Policy) Charge - 10% of the applicable rate if issued at Date of Policy; and 20% of the applicable rate if issued subsequent to Date of Policy. This endorsement insures against loss by reason of the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage as security for the Additional Interest calculated pursuant to the formula provided in the loan documents secured by the Insured Mortgage at Date of Endorsement for repayment of the Swap Obligation.  The issuance of this endorsement requires written underwriter approval.

DTIRB 50 Interest Rate Swap – Direct Obligation (ALTA 29-06) (Loan Policy) Charge - 10% of the applicable rate if issued at Date of Policy; and 20% of the applicable rate if issued subsequent to Date of Policy. This endorsement insures against loss by reason of the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation at Date of Endorsement.  The issuance of this endorsement requires written underwriter approval.

DTIRB 51 Estate Planning Endorsement (Previously Issued Owner’s Policy(s) 1970, amended 1984 and 1992) Charge - $50.00. This endorsement expands the definition of "insured" in the 1992 ALTA Owner's Policy to include successors to an Insured as defined in and subject to conditions identified in the endorsement. The endorsement is intended for use where the 1992 version of the ALTA Owner’s Policy (which has been withdrawn from use) was previously issued to the insured.

The new policies are as follows:

ALTA Homeowner’s Policy of Title Insurance (For a One-to-Four Family Residence) (02/03/10)

ALTA Expanded Coverage Residential Loan Policy (07/26/10) - as modified by DTIRB (07/15/2011)

ALTA Short-Form Expanded Coverage Residential Loan Policy (07/26/2010) - as modified by DTIRB (07/15/2011)

The revisions to the Rating Manual merely reflect the addition of the new forms, and the Schedule of Rates remains unchanged. The forms are available from the Delaware State Office. The Rating Manual will be available under the "Forms and Policy Information" Index on our website: http://www.stewart.com/delaware.

As a reminder, agents using AFW should contact PropertyInfo Customer Care to get the new rate changes implemented in their AFW 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.