Bulletin: LA2014007

Date:
July 18, 2014
To:
All Louisiana Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - ALTA 11.2-06, ALTA 42-06, ALTA 43-06, ALTA 44-06 and ALTA 41 Series Endorsements Form and Rate Rule Changes

Dear Associates:

The Louisiana Department of Insurance has approved a Form and Rate Rule Filing made by LATISSO effective August 4, 2014 for the endorsements referenced below.

ALTA 11.2-06 (Mortgage Modification with Additional Amount of Insurance) 12/02/13 (effective 08/04/14)

This is a new endorsement form and rate rule. This endorsement may only be issued with a Loan Policy. The endorsement provides coverage against loss or damage arising for the invalidity or unenforceability of the lien of the insured mortgage resulting from the modification of the insured mortgage, the lack of priority if the insured mortgage at the date of the endorsement, and from specified matters, set forth in paragraph 3c of the endorsement not being subordinate to the lien of the insured mortgage. In addition, this endorsement has a provision whereby the Amount of Insurance may be increased to a certain amount to be stated therein. The endorsement is used to reflect an increase in the amount of the mortgage.

The ALTA 11.2-06 (Mortgage Modification with Additional Amount of Insurance) 12/02/13 (08/04/14) is available in word format at www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    50 cents per thousand of the unpaid principal balance prior to the increase in coverage plus the premium associated with the increase to the Amount of Insurance.

ALTA 41-06 (Water - Buildings) 12/02/13 (effective 08/04/14)

This is a new endorsement form and rate rule. This endorsement may be issued with an Owner Policy or with a Loan Policy. The endorsement provides coverage against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any improvement (as defined within) resulting from the future exercise of any right existing at date of policy to use the surface of the land for the extraction or development of water excepted from the description of the land or excepted to in Schedule B.

The ALTA 41-06 (Water - Buildings) 12/02/13 (08/04/14) is available in word format at www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    2% of the original rate for the policy it is being issued with and is in addition to the policy premium. The minimum charge is $250. If this endorsement is issued in conjunction with an ALTA 35-6 (Mineral and Other Subsurface Substances – Buildings) on the same policy, the minimum premium remains applicable to the ALTA 35-06; however, the minimum premium is not applicable to the ALTA 41-06.

ALTA 41.1-06 (Water - Improvements) 12/02/13 (08/04/14)

This is a new endorsement form and rate rule. This endorsement may be issued with an Owner Policy or with a Loan Policy. The endorsement provides coverage against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any improvement (as defined within) resulting from the future exercise of any right existing at date of policy to use the surface of the land for the extraction or development of water excepted from the description of the land or excepted to in Schedule B.

The ALTA 41.1-06 (Water - Improvements) 12/02/13 (08/04/14) is available in word format at www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    2% of the original rate for the policy it is being issued with and is in addition to the policy premium. The minimum charge is $250. If this endorsement is issued in conjunction with an ALTA 35.1-6 (Mineral and Other Subsurface Substances - Improvements) on the same policy, the minimum premium remains applicable to the ALTA 35.1-06; however, the minimum premium is not applicable to the ALTA 41.1-06.

ALTA 41.2-06 (Water - Described Improvements) 12/02/13 (08/04/14)

This is a new endorsement form and rate rule. This endorsement may be issued with an Owner Policy or with a Loan Policy. The endorsement provides coverage against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any described improvement (as defined within) resulting from the future exercise of any right existing at date of policy to use the surface of the land for the extraction or development of water excepted from the description of the land or excepted to in Schedule B.

The ALTA 41.2-06 (Water - Described Improvements) 12/02/13 (08/04/14) is available in word format at www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    2% of the original rate for the policy it is being issued with and is in addition to the policy premium. The minimum charge is $250. If this endorsement is issued in conjunction with an ALTA 35.2-6 (Mineral and Other Subsurface Substances – Described Improvements) on the same policy, the minimum premium remains applicable to the ALTA 35.2-06; however, the minimum premium is not applicable to the ALTA 41.2-06.

ALTA 41.3-06 (Water - Land Under Development) 12/02/13 (08/04/14)

This is a new endorsement form and rate rule. This endorsement may be issued with an Owner Policy or with a Loan Policy. The endorsement provides coverage against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any improvement (as defined within) or future improvement (as defined within) resulting from the future exercise of any right existing at date of policy to use the surface of the land for the extraction or development of water excepted from the description of the land or excepted to in Schedule B.

The ALTA 41.3-06 (Water - Land Under Development) 12/02/13 (08/04/14) is available in word format at www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    3% of the original rate for the policy it is being issued with and is in addition to the policy premium. The minimum charge is $250. If this endorsement is issued in conjunction with an ALTA 35.3-6 (Mineral and Other Subsurface Substances – Land Under Development) on the same policy, the minimum premium remains applicable to the ALTA 35.3-06; however, the minimum premium is not applicable to the ALTA 41.3-06.

ALTA 42-06 (Commercial Lender Group) 12/02/13 (08/04/14)

This is a new endorsement form and rate rule. This endorsement may be issued only with a Loan Policy. The endorsement provides coverage against loss or damage sustained by reason of invalidity or unenforceability, or loss of priority of the lien of the insured mortgage, caused by transfers after date of policy of portions of the indebtedness by the participants and also provides that a participant is an insured.

The ALTA 42-06 (Commercial Lender Group) 12/02/13 (08/04/14) is available in word format at www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    5% of the original rate for the policy. The minimum charge is $100.

ALTA 43-06 (Anti-Taint) 12/02/13 (08/04/14)

This is a new endorsement form and rate rule. This endorsement may be issued only with a Loan Policy. The endorsement provides coverage against loss or damage sustained by reason of loss of priority of the lien of the insured mortgage as security for the amount of the indebtedness advanced as the term loan resulting from reductions and subsequent increases of the outstanding principal amount of the indebtedness payable as the revolving credit loan.

The ALTA 43-06 (Anti-Taint) 12/02/13 (08/04/14) is available in word format at www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    $250.

ALTA 44-06 (Insured Mortgage Recording) 12/02/13 (08/04/14)

This is a new endorsement form and rate rule. This endorsement may be issued only with a Loan Policy. The endorsement provides coverage against loss or damage sustained by reason of the failure of the insured mortgage to have been recorded in the public records as set out in the endorsement.

The ALTA 44-06 (Insured Mortgage Recording) 12/02/13 (08/04/14) is available in word format at www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    $50.

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

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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None