Bulletin: LA2013001

Date:
August 27, 2013
To:
All Louisiana Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - ALTA 9 Series Endorsement Forms - Form and Rate Rule Changes

Dear Associates:

The Louisiana Department of Insurance has approved a Form and Rate Rule filing made by LATISSO effective September 1, 2013, for the endorsements referenced below.

ALTA 9-06 (Restrictions, Encroachments, Minerals - Loan) 04-02-12 (effective 09/01/13)

This is a revision to the prior ALTA 9-06 endorsement version. It provides coverage as to violations of covenants, encroachments, violation of setbacks, encroachments and damage to existing improvements because of development of minerals. This version no longer gives coverage for the Private Rights contained in Exceptions. Coverage associated with Private Rights will be provided in the new ALTA 9.6-06 Private Rights Endorsement 04/02/12.

Rate has not changed and remains at 10% of full policy premium with a minimum premium of $150.

ALTA 9.1-06 (Covenants, Conditions and Restrictions - Unimproved Land - Owner’s) 04-02-12 (effective 09/01/13)

This is a revision to the prior ALTA 9.1-06 endorsement version. This version only provides coverage against violation of covenants unless such violation is shown as an exception in Schedule B and against notice of the violation being in the public records. Mineral coverage must be given by use of the appropriate ALTA 35-06 series endorsement. Encroachment coverage must be given by using the appropriate ALTA 28 series endorsement for encroachments over boundaries or onto easements.

Rate has been revised and is now 15% of full policy premium with a minimum premium of $150.

ALTA 9.2-06 (Covenants, Conditions and Restrictions - Improved Land - Owner’s) 04-02-12 (effective 09/01/13)

This is a revision to the prior ALTA 9.2-06 endorsement version. This version only provides coverage against recorded building setbacks or violation of an enforceable covenant unless shown as an exception in Schedule B and against notice of the violation being in the public records. Mineral coverage must be given by use of the appropriate ALTA 35-06 series endorsement. Encroachment coverage must be given by using the appropriate ALTA 28 series endorsement for encroachments over boundaries or onto easements.

Rate has been revised and is now 15% of full policy premium with a minimum premium of $150.

ALTA 9.3-06 (Covenants, Conditions and Restrictions - Loan) 04-02-12 (effective 09/01/13)

This is a revision to the prior ALTA 9.3-06 endorsement version. This version no longer provides coverage over Private Rights contained in the policy’s Schedule B exceptions. Coverage associated with Private Rights will be provided in the new ALTA 9.6-06 Private Rights Endorsement 04/02/12. Mineral coverage must be given by use of the appropriate ALTA 35-06 series endorsement. Encroachment coverage must be given by using the appropriate ALTA 28 series endorsement for encroachments over boundaries or onto easements.

Rate has not changed and remains at 10% of full policy premium with a minimum premium of $150.

ALTA 9.4-06 (Restrictions, Encroachments, Minerals - Owner’s - Unimproved Land)

This endorsement has been withdrawn by the ALTA board and is no longer available for issuance as of 09/01/13.

ALTA 9.5-06 (Restrictions, Encroachments, Minerals - Owner’s - Improved Land)

This endorsement has been withdrawn by the ALTA board and is no longer available for issuance as of 09-01-13.

ALTA 9.6-06 (Private Rights - Loan) 04-02-12 (effective 09/01/13)

This endorsement is a new form and rate rule. This endorsement insures against loss or damage due to the enforcement of a “Private Right” in a covenant that results in the invalidity, unenforceability or lack of priority of the lien of the insured mortgage, or, that causes a loss of the insured’s title acquired in satisfaction or partial satisfaction of the indebtedness. “Private Right” is defined within the endorsement as a (i) private charge or assessment; (ii) an option to purchase; (iii) a right of first refusal; or (iv) a right or prior approval of a future purchaser or occupant. 

Rate:  10% of full policy premium with a minimum premium of $150

ALTA 9.7-06 (Restrictions, Encroachments, Minerals - Land Under Development - Loan’s) 04-02-12 (effective 09/01/13)

This endorsement is a new form and rate rule. This endorsement insures against violations of restrictions, encroachments over easements, building lines or property lines, and damage by reason of mineral or other subsurface substance development with respect to improvements and future improvements. It is similar to the CLTA Form 100 and other comprehensive endorsements and provides coverage similar to the ALTA 9-06 endorsement. It provides coverage with respect to future improvements that are shown on identified plans (survey, site and elevation plans or other depictions or drawings prepared by an architect or engineer and identified in Section 2 d of the endorsement). It may not be issued with an owner policy.

Rate:  20% of full policy premium with a minimum premium of $150

ALTA 9.8-06 (Covenants, Conditions and Restrictions - Land Under Development - Owner’s) 04-02-12 (effective 09/01/13)

This endorsement is a new form and rate rule. This endorsement insures against violations of covenants and notices of violations of covenants relating to environmental protection with respect to improvements and future improvements. It provides coverage similar to the ALTA Endorsement 9.2-06 for existing improvements. It provides coverage with respect to future improvements that are shown on identified plans (survey, site and elevation plans or other depictions or drawings prepared by an architect or engineer and identified in Section 2 d of the endorsement).

Rate:  20% of full policy premium with a minimum premium of $150

ALTA 9.9-06 (Private Rights - Owner’s) 04-02-13 (effective 09/01/13)

This endorsement is a new form and rate rule. This endorsement insures as of Date of Policy against loss or damage by reason of enforcement of a Private Right in a covenant affecting title as Date of Policy by reason of a transfer of title on or before Date of Policy resulting in a loss of the insured’s title. A Private Right is (a) an option to purchase; (b) a right of first refusal; or (c) a right of prior approval of a future purchaser or occupant. A covenant is a covenant, condition, limitation or restriction in a document or instrument recorded in the public records at Date of Policy.

Rate:  12.5% of full policy premium with a minimum premium of $175

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

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