- January 29, 2010
- All New York State Office Counsel, Managers and Agents
- Section 26 of the TIRSA Rate Manual and Section 6409c of the New York State Insurance Law
All policy issuing offices are reminded to comply with Section 26 of the TIRSA Rate Manual and Section 6409c of the New York State Insurance Law.
Section 26 of the TIRSA Rate Manual provides:
SECTION 26 - NOTICE OF AVAILABILITY
(A) When a Company issues a loan policy on a mortgage made simultaneously with the purchase of all or part of the residential (one to four family) property securing the mortgage, where no owner's policy has been ordered, the Company shall inform the borrower in writing that the mortgagee's policy does not protect the borrower, and that the borrower may obtain an owner's title insurance policy for his/her protection. This notice must be provided before disbursement of the loan proceeds and before issuance of the mortgagee's policy. The notice must be on a form approved by the Superintendent of Insurance.
(B) If the borrower elects not to purchase an owner's title insurance policy, the Company shall obtain from the borrower a statement in writing that the notice has been received and that the borrower waives the right to purchase an owner's title insurance policy. If the buyer refuses to provide the statement and waiver, the Company shall so note in the file. The statement and waiver must be on a form approved by the Superintendent of Insurance and must be retained by the Company for at least five years after receipt.
6409c of the New York State insurance Law provides:
(c) Notwithstanding any other provision of this article, every title insurance company shall be required to offer, at or prior to title closing, an optional policy form which will insure the title of owner-occupied real property used predominantly for residential purposes which consists of not more than four dwelling units for an amount equal to the market value of the property at the time a loss is discovered. Such policy form shall be filed with the superintendent pursuant to subsection (a) of this section. Rates for such coverage shall be filed pursuant to subsection (b) of this section.
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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.
- Bulletins Replaced:
- Related Bulletins:
- NY000043 Notice of Availability of Owner's Title Insurance (TIRSA Rate Manual - Part 1, Section 26)
- NY000420 Notice of Availability of Owner's Title Insurance (TIRSA Rate Manual - Part 1, Section 26)
- Underwriting Manual:
- Exceptions Manual: