The Title Insurance Rating Bureau of Pennsylvania (“TIRBOP”) submitted to the Pennsylvania Insurance Department a filing including: (1) three new endorsements; (2) a series of revisions to existing forms; (3) the expansion of the use of three existing forms to allow their use with owners’ policies and not just loan policies; (4) Changes to the charges and liability amounts for the Record Owner and Lien Certificate; and (5) Changes to Section 5.2 G. of the Rate Manual. The new and revised forms and rate changes were approved and are effective October 1, 2017.
The new endorsements are as follows:
- TIRBOP Endorsement 1331 (ALTA 29.2-06) - Interest Rate Swap - Direct Obligation - Defined Amount (Loan Policy Only)
This endorsement provides the same coverage as TIRBOP 1320, except that it establishes an Additional Amount of Insurance designated solely for losses addressed in the endorsement. This endorsement is prohibited in conjunction with the issuance of a loan policy insuring 1-4 family residential property.
- TIRBOP Endorsement 1332 (ALTA 29.3-06) - Interest Rate Swap - Additional Interest - Defined Amount (Loan Policy Only)
This endorsement provides the same coverage as TIRBOP 1330, except that it establishes an Additional Amount of Insurance designated solely for losses addressed in the endorsement. Use of this endorsement is prohibited in conjunction with the issuance of a loan policy insuring 1-4 family residential property.
- TIRBOP Endorsement 1660 (ALTA 34-06) - Identified Risk (Owner’s and/or Loan Policy)
This endorsement insures against enforcement of an Identified Risk excepted for in Schedule B, and, subject to certain conditions, insures against loss or damage by reason of the release of prospective purchaser or lessee of the Title or lender on the Title from the obligation to purchase, lease or lend as a result of the Identified Risk.
Charges for the three (3) new endorsements listed above are as follows:
- The Charge for TIRBOP 1331 (ALTA 29.2-06) and 1332 (ALTA 29.3-06) is the difference between the Charge for the Amount of Insurance on Schedule A and the Charge when adding the Additional Amount of Insurance.
- The Charge for TIRBOP 1660 (ALTA 34-06) is $100.00.
The revised endorsements and the nature of the revisions are as follows:
- TIRBOP 810 (ALTA 4.1-06) - Condominium - Current Assessments: Adding “Condominium” in the endorsement title.
- TIRBOP 820 (ALTA 5.1-06) - Planned Unit Development - Current Assessments: Adding “Planned Unit Development” to the endorsement title.
- TIRBOP 1030 (ALTA 9-06) - Restrictions, Encroachments, and Minerals: “Flooding” added to Paragraph 5. d. of the exclusions.
- TIRBOP 1590 (ALTA 9.10-06) - Restrictions, Encroachments, and Minerals - Current Violations: “Flooding” added to Paragraph 5. d. of the exclusions and footer changed to add ALTA number.
- TIRBOP 1240 (ALTA 18.1-06) - Multiple Tax Parcels - Easements: “Easements” has been added to the endorsement name.
- TIRBOP 1314 & 1315 (ALTA 28.3-06) - Encroachments - Boundaries and Easements: “Described Improvements And” deleted from the endorsement name and editorial changes to paragraphs 1 and 3b.
- TIRBOP 1320 (ALTA 29-06) - Interest Rate Swap – Direct Obligation: “repayment” replaced “payment” in paragraph 2 and editorial changes to paragraph 3.
- TIRBOP 1330 (ALTA 29.1-06) - Interest Rate Swap – Additional Interest: “Repayment” replaced “payment” in paragraph 2, editorial changes in paragraph 3, and “stay, rejection or” added before “avoidance of lien” in paragraph 3b.
- TIRBOP 1340 & 1341 (ALTA 35-06) - Minerals and Other Subsurface Substances - Buildings: “Flooding” added to exclusions.
- TIRBOP 1350 & 1351 (ALTA 35.1-06) - Minerals and Other Subsurface Substances: “Flooding” added to exclusions.
- TIRBOP 1360 & 1361 (ALTA 35.3-06) - Minerals and Other Subsurface Substances - Land Under Development: “Flooding” added to exclusions.
- TIRBOP 1470 & 1471 (ALTA 36.6-06) - Energy Projects - Encroachments: “Flooding” added to exclusions.
- TIRBOP 500 (ALTA 11-06, as modified by TIRBOP) - Mortgage Modification: “on” in paragraph 1 changed to “an”.
- TIRBOP 1033 (ALTA 9.6-06) - Private Rights: The “[“ following Schedule B in paragraph 4d is deleted as well as designation “as modified by TIRBOP”.
- TIRBOP 1150 (ALTA 14.2-06) - Future Advances - Letter of Credit: The “[;or]” is deleted from Paragraph 3b as the optional paragraph 3c was deleted by TIRBOP in adopting the endorsement.
- TIRBOP 1570 (ALTA 40-06) - Tax Credit - Owner’s Policy: Signatory line added and footer revised to add ALTA number.
- TIRBOP 1530 (ALTA 14-06) - Future Advance - Priority; TIRBOP 1540 (ALTA 14.1-06) - Future Advance - Knowledge.
- TIRBOP 1550 & 1551 (ALTA 17.2-06) – Utility Access; TIRBOP 1560 (ALTA 37-06) - Assignment of Rents or Leases.
- TIRBOP 1580 (ALTA 40.1-06) - Tax Credit - Defined Amount: Footer revised to each of these forms to add ALTA number.
There were no changes to the Charges for the above referenced modified endorsements.
The following endorsements for loan policies are now available on owners’ policies:
- TIRBOP 910 - Environmental Protection Lien
- TIRBOP 1100 - Waiver of Arbitration
- TIRBOP 1280 (ALTA 22-06) - Location
The Charge for each of the three (3) above named endorsements when issued with an Owner’s Policy is $100.00, identical to the Charge when issued with the Loan Policy.
The following modifications have been made to the Rate Manual related to the Record Owner and Lien Certificate:
- The Record Owner and Lien Certificate now appears in the Supplemental Forms Section at Section 3.6. Its former location, Section 5.14 has been deleted.
The Charges and liability amounts for the Record Owner and Lien Certificate have been modified and are now based on the type of property:
- For 1-4 family residential property, the basic liability for a Record Owner and Lien Certificate is $2,500.00 and the Charge is $350.00 per chain of title; and
- For commercial property, the basic liability for a Record Owner and Lien Certificate is $5,000.00 and the Charge is $750.00 per chain of title.
As with the prior Section 5.14, new Section 3.6 allows the Insurer in its discretion to increase the liability limit, applying the Sale Rate for the amount of increased liability. When insurance is requested from the same Insurer upon the same property within six (6) months from the date of the certificate, the Charge for the certificate will be credited against the Charge for the insurance.
Section 5.2 G. of the Rate Manual - ENDORSEMENT CHARGES - Multiple Policies & Percentage Endorsements, now reads as follows:
“The Charge for an endorsement shall be made each time an endorsement is attached to a policy regardless of the number of policies issued in a particular transaction; provided, however, a Charge for endorsements priced as a percentage shall only be made once in transactions where multiple policies are issued in accordance with 5.4 (D), 5.5 (D) or (E). The Charges for an endorsement priced as a percentage shall be calculated by applying the specified percentage to the rate applicable to the transaction as determined by this Section 5.2. Where a leasehold interest is to be insured simultaneously with the interest of an owner and/or mortgagee of the fee simple estate, the Charge for an endorsement priced as a percentage shall be 30% of the Charge for an endorsement priced as a percentage if issued with a policy insuring the interest of an owner and/or a mortgagee.”
The Rate Manual and forms are available under the “Forms and Policy Information” index on our website: http://www.stewart.com/pennsylvania
Agents, please contact PropertyInfo Customer Care or your title production software vendor to get the new rates/forms changes implemented in your system.
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.