Bulletin: GA2013006

Date:
August 20, 2013
To:
All Georgia Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - FORMS - Additional Insured Endorsement

Dear Associates:

The Georgia Department of Insurance has adopted and approved the new STG Additional Insured Endorsement form for use with the ALTA Homeowner’s (Enhanced) Policy effective immediately.

The ALTA Homeowner’s Policy currently limits its issuance to only natural persons. A natural person is defined as a human being, not a commercial or legal organization or entity. A natural person also includes a trustee of a trust even if the trustee is not a human being. Often, individual investors want to purchase residential property in the name of a legal entity and still be able to purchase the ALTA Homeowner’s Policy of Title Insurance.

The STG Additional Insured Endorsement includes in the definition of “Natural Person” a corporation, partnership or Limited Liability Company or other legal entity in good standing. This provides coverage for individual investors who wish to purchase a one to four family residence in the name of a legal entity. Additionally, this endorsement provides for the naming of an additional insured in a title policy, with certain qualifications. It is intended to be issued as an accommodation in circumstances where the additional insured would have been covered under the definition of insured in the Conditions and Stipulations of the original policy. This endorsement will allow you to issue the Policy to other legal entities capable of holding title only if they meet the requirements for the endorsement.

As a reminder, Issuing Agents may issue the ALTA Homeowner’s Policy if the land is residential improved property in a platted subdivision lot or condominium unit. Land is "residential" only if it has a single-family residence or residential condominium (not manufactured housing). All other requirements, including the Homeowner’s Title Insurance Affidavit, must be met as set forth in Guideline: ALTA Homeowner's Policy of Title Insurance Revised 02/03/10 for issuance of this policy.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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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.