- July 30, 2010
- All Louisiana Issuing Offices
- Simultaneous Issue of Owner and Loan Policies; Rate Rule Change
The Louisiana Department of Insurance has approved the following changes to the LATISSO Rate filing for Simultaneous Issue of Owner and Loan Policies. This Rate change is effective August 1, 2010.
Simultaneous Issuance of Owners and Loan Policies
When simultaneous issue of Owner's and Loan Policies covering identical land are issued, the combined rate for the simultaneously issued policies shall be the applicable Owners Rate plus $100 for each Standard Loan Policy issued, and $125 for each Expanded Coverage Residential Loan Policy issued, provided that the applicable Loan Policy (or if more than one Loan Policy is issued, then the aggregate amount of the Loan Policies) does not insure in an amount in excess of the Owner's Policy.
When the amount of coverage of an existing Owner's Policy is increased with the simultaneous issue of a new loan policy covering identical land, the combined rate for the simultaneous increase in owner's coverage and issuance of the loan policy shall be the applicable Owners Rate for the increase in owner's coverage plus $100 for each Standard Loan Policy issued, and $125 for each Expanded Coverage Residential Loan Policy issued, provided that the applicable Loan Policy (or if more than one Loan Policy is issued, then the aggregate amount of the Loan Policies) does not insure in an amount in excess of the simultaneous increase to the Owner's Policy.
In both cases, when the total of the insurance for the Loan Policy or Policies exceeds the new or increased insurance of the Owner's Policy, the rate for such excess shall be the Original Rate for the applicable Loan Policy in the applicable bracket or brackets for such excess amount. To qualify for simultaneous issuance rate, the mortgagor in the mortgage, the lien of which is insured by the Loan Policy, must be one and the same legal entity as the owner insured by the Owner's Policy.
The Louisiana Rate and Form Manual has been updated to reflect the change in the Form for these endorsements. Please go to www.stgla.com for the updated manual and the revised forms in electronic format.
If you have questions relating to this bulletin, please contact Louisiana Underwriting Personnel at (800) 209-4675 or Stewart Legal Services.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
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