Guideline: ALTA Endorsement 34-06 (Identified Risk Coverage) (08-01-11)

Organizational Guidelines

Guideline: ALTA Endorsement 34-06 (Identified Risk Coverage) (08-01-11)

Guideline Document
10/11/2012
V 1

Explanation:

This endorsement provides certain specific coverages for a matter, referred to as the “Identified Risk”, that is excepted to in Schedule B of either an ALTA Owner’s or Loan Policy.

The endorsement insures against loss or damage sustained by reason of:

a. a final order enforcing the Identified Risk in favor of an adverse party; or

b. the release of a prospective purchaser or lessee or lender from the obligation to purchase, lease, or lend as a result of the Identified Risk, but only if:

                i. there is a contractual condition requiring the delivery of marketable title, and

                ii. neither Stewart nor any other title insurance company is willing to insure over the Identified Risk with the same conditions as in the endorsement.

This endorsement does not obligate the Company to establish the Title free of the Identified Risk or to remove the Identified Risk.

Underwriting Requirements:

1. Insert in Section #1 a description of the Identified Risk (i.e., the title defect, restriction, encumbrance, or other matter).

2. Insert in Section #1 the number or letter of the applicable Schedule B Exception.

3. Confirm that the Identified Risk is not a matter that may be considered an extrahazardous or special risk and not insure such risks without compliance with the appropriate underwriting guidelines and underwriter approval.  Please refer to Virtual Underwriter Section 5.36, Extrahazardous Risks, as well as other relevant VU sections and Company bulletins.

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.

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.