NY TIRSA First Loss Endorsement Guideline 1995

Organizational Guidelines

NY TIRSA First Loss Endorsement Guideline 1995

Guideline Document
V 1


Purpose Of Endorsement:
Where claim(s) due to a loss or a series of losses exceeds 10% of the insurance amount, Company becomes liable to pay on the policy (subject to subrogation rights) without the Company requiring acceleration of the entire mortgage debt or foreclosure against all of the secured properties prior to payment. This coverage is useful where a single policy has been issued insuring a mortgage covering several properties, or a cluster endorsement has been issued. This endorsement is usually issued with a Cluster Endorsement (see the commentaries under Cluster Endorsement for more detail).

Underwriting Requirements:

Requirements For Issuance:
(a) Underwriter approval is required prior to issuance in every case (this is a requirement of the New York State Insurance Department);
(b) Company Counsel must review the loan documentation;
(c) If the transaction, as structured, involves a single loan secured by multiple properties or a consolidation and spreader of loans covering numerous properties, and it would be inequitable for the Company to require the insured lender to call the loan or foreclose and sell other of the properties in the event of claims arising on one or only a few parcels, this endorsement may be appropriate.
Issued With The Following Policies:
Applicable to loan policies only.
10% of the unreduced (straight) mortgage premium.

Any revision to this form requires approval of a Stewart Title Guaranty Company underwriter. The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):
  • None