Bulletin: ME2021002

Date:
October 13, 2021
To:
All Maine Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - STG Gold Endorsement to 2021 ALTA Homeowner’s Policy

Dear Associates:

The new 2021 STG Gold Endorsement to the 2021 ALTA Homeowner’s Policy improves the coverage that the Insured receives in the 2021 ALTA Homeowner’s Policy. The new 2021 STG Gold Endorsement to the 2021 ALTA Homeowner’s Policy is now available for issuance in Maine with the new 2021 ALTA Homeowner’s Policy.

Although the 2021 ALTA Homeowner’s Policy can be issued with one-to-four family residences, the new 2021 STG Gold Endorsement to the 2021 ALTA Homeowner’s Policy can only be issued if the property is improved with an existing single-family residence.

You may issue this endorsement with the 2021 ALTA Homeowner’s Policy without any additional charge or premium and without any additional requirements if the property is improved with a single-family dwelling. Since it improves coverage for the insured, we recommend that it be issued unless you receive contrary instructions from the Insured. You should comply with existing Guidelines for the ALTA Homeowner’s Policy. 

Some of the additional coverages afforded by the STG Gold endorsement to the 2021 ALTA Homeowner’s Policy include:

  • Expansion of policy availability to legal entities
  • Expansion of post-policy covered risks
  • Expansion of continuation of coverage provisions, including transfers to a limited liability company where the insured is the sole owner of the limited liability company

This endorsement is not designed for nor should it be issued with any prior version of the ALTA Homeowner’s Policy, such as the 2013 ALTA Homeowner’s Policy. It should not be issued with any of the ALTA Expanded Coverage Residential Loan Policies or the 2021 ALTA Owner’s or Loan Policy.

The form of Gold Endorsement is reprinted below for your review. It can also be found on Virtual Underwriter (www.vuwriter.com). 

Please contact your title production software vendor to have the new form uploaded to your title production software system.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For online viewing of this and other bulletins, please log onto www.vuwriter.com.

 

EXHIBIT

2021 GOLD HOMEOWNER’S ENDORSEMENT TO 2021 ALTA HOMEOWNER’S POLICY
(HOMEOWNER’S ENHANCEMENT)

THIS ENDORSEMENT IS EFFECTIVE ONLY IF THE LAND IS AN EXISTING OWNER-OCCUPIED SINGLE-FAMILY
RESIDENCE OR A RESIDENTIAL CONDOMINIUM UNIT 

1.

ENHANCED COVERAGE FOR LEGAL ENTITIES

 

The following paragraph of the Coverage Statement is deleted:

 

This policy covers You only if the Land is improved with an existing one-to-four family residence and each party named in Item 1 of Schedule A is a Natural Person or Estate Planning Entity.

 

and replaced with the following:

 

“This policy covers You only if the Land is improved with an existing single-family residence or a residential condominium unit. If the Land is not an improved single-family residence or a residential condominium unit, then this endorsement is void.”

2.

ENHANCED POST-POLICY COVERED RISKS

 

Covered Risk 5, which states “Any of Covered Risks 1 through 4 occurring after the Date of Policy” is replaced by new Covered Risk 5, which states “5. Any of Covered Risks 1 through 4 or Covered Risk 6 or Covered Risk 7 occurring after the Date of Policy.”

3.

ENHANCED GOVERNMENTAL FORFEITURE COVERED RISK

 

The following is added at the end of Covered Risk 15:

 

“With respect to an enforcement of a governmental forfeiture power that occurred before the Date of Policy, You lose your Title but only to the extent the enforcement of a governmental forfeiture occurred before the Date of Policy and is binding on You, if You purchased the Land without Knowledge of the forfeiture.”

4.

CERTIFICATE OF OCCUPANCY COVERED RISK

 

The following is added as a new second sentence to Covered Risk 18 to the policy, subject to Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A for Covered Risk 18:

 

“If You are a natural person, You are ordered by a State or Municipal authority to remove or remedy any portion of Your existing single-family dwelling -- other than boundary walls or fences -- because Your existing single-family dwelling was completed and occupied more than six years prior to the Date of Policy without obtaining a certificate of occupancy from the proper government office.”

5.

ENHANCED GAP COVERAGE COVERED RISK

 

The following is substituted for Covered Risk 32 to provide:

 

“32. If the Insured named in Schedule A first acquires the interest shown in Schedule A by an instrument recorded in the Public Records later than the date and time shown in Schedule A, the Date of Policy is the date and time the instrument is recorded and the Company insures against any defect in, lien, or encumbrance on the Title or any other matter or Covered Risk prior to the recording of the deed or other instrument  vesting the Title in the Public Records.

6.

PACA-PSA TRUST COVERED RISK

 

New Covered Risk 34 is added to the Covered Risks:

 

“34. Any claim of a PACA-PSA Trust. For purposes of this Covered Risk, a PACA-PSA Trust is a trust under the federal Perishable Agricultural Commodities Act or the federal Packers and Stockyards Act or a similar state or federal law.”

7.

ENHANCED CONTINUATION OF COVERAGE

 

Condition 2.a. (Continuation of Coverage) is amended to add Condition 2.a.iv below:

 

“2.a.iv. Your coverage under this policy also continues as of the Date of Policy so long as You have liability for covenants of Title, including any covenant of seisin.”

 

Condition 2.b. (Continuation of Coverage) is amended to add 2.b.vii, 2.b.viii, 2.b.ix, or 2.b.x below:

 

2.b. This Policy also insures: “2.b.vii. Your spouse who receives Your Title by deed from You because You are the sole owner and You transfer with or without consideration Your Title or a portion thereof to him or her, or viii. Your child or Your grandchild who receives Your Title by gift deed from You without payment of any consideration; or ix. A limited liability company or other entity to which You transfer Your Title by deed provided that you are the sole owner of that company or other entity; or x. a transferee by a transfer effective on Your death.”

8.

INCREASED AMOUNT OF INSURANCE

 

Condition 6.d.i. (Contract of Indemnity; Determination and Extent of Liability) is amended as provided below:

 

The following Condition 6.d.i is deleted                                      

 

6.d.i. the Amount of Insurance then in force will be increased by 15% of the Amount of Insurance shown in Schedule A; and

 

and replaced with the following:

 

6.d.i. the Amount of Insurance then in force will be increased by 20% of the Amount of Insurance shown in Schedule A; and

9.

APPLICABLE ONLY FOR AN OWNER-OCCUPIED SINGLE-FAMILY RESIDENCE.

 

The coverage contained in this endorsement is effective only for an owner-occupied single-family residence or residential condominium unit, and is subject to the Exclusions, Exceptions and Conditions in the Policy and this endorsement will not be effective if the Land is not a single-family residence or a residential condominium unit occupied by You. There shall be no liability under this Endorsement based upon the refusal or failure of any person or entity to purchase, lease or lend money on the Land. This endorsement may only be used in conjunction with the 2021 ALTA Homeowner's Policy (adopted 07-01-21).

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.

Copyright 2021 Stewart Title Guaranty Company. All rights reserved. The use of this Form is restricted to Stewart Title Guaranty Company, its issuing agents, and affiliates in good standing as of the date of use. All other uses are prohibited.

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