View state supplements to the national underwriting manual.
Affirmative insurance is also known as affirmative coverage.
There may be some constraints upon the offering of affirmative coverage. For example:
The standard affirmative coverages offered by ALTA policies are the following:
(Additional) Standard Affirmative Coverages By ALTA 2006 Title Policies
The standard affirmative coverages offered by ALTA 2006 policies include the covered risks listed above, along with the following:
· Defects expressly include exclusion
· Defects expressly include failure to comply with electronic law
· Defects expressly include failure to promptly, file, record, or index
· Taxes are not yet due and payable
· Defects expressly include encroachments, violation, and adverse circumstances disclosed by accurate survey
· Encroachments expressly include those onto adjoining land
· Gap Coverage
ALTA Forms Of Endorsements
There are numerous endorsements for the basic policies at this time.
Other Forms Of Title Insurance Endorsements
A variety of title risks may be insured through a form of endorsement, subject to numerous jurisdictional constraints, and Company approval. Most endorsements are the product of market demand and local practices.
Because of the risk and complexity involved, many endorsements require prior underwriter approval, including but not limited to the following:
Written authorization from the Company is required to delete or modify any exclusion from coverage in the title insurance policy by endorsement; and the Company requires written approval of the endorsement language.
In some cases and under specific conditions, certain matters shown as general or specific exceptions in Schedule B of the policies are "insured over"; that is, affirmative insurance is provided against "loss or damage," not exceeding the amount of the policy, as a result of such matters.
Additonal Reference: Stewart Bulletin SLS2007007
In some cases and under specific conditions, an exception can be modified by the addition of affirmative coverage at the end of the exception or by an appropriate endorsement.
Insuring over exceptions and other title risks is hazardous. Extreme care should be exercised prior to assuming the additional risk and in wording the clause affording the additional coverage. Although coverage must usually be tailored to suit every particular situation, there are certain general rules and guidelines to observe: