Stewart Bulletin

CA2009001

Date: March 10, 2009
To: All California Issuing Offices
RE:

Joint Protection Policies

Dear Associates:

The popularity of the Homeowner's forms, pricing provisions, and conflicting local practices have occasioned some confusion about when to issue a Joint Protection Policy (JP) and how to charge for it. Here are some helpful guidelines.

The Form

A Joint Protection Policy is one that insures both the buyer and his concurrent lender. In some circumstances the JP may also be used to insure both vendor and vendee under an agreement for sale.

The CLTA Standard Coverage Policy is uniquely structured to accommodate insurance of either an owner or a lender under one form. Neither the ALTA Owner's forms nor the Homeowner's forms are structured to accommodate issuance of a JP. In particular, it is not appropriate to add a lender as an insured when an ALTA Owner's Policy containing Western Regional Exceptions is issued to the owner.

There is no difference in coverage to the parties insured whether insured under a JP or separate CLTA Standard Coverage Policies.

Pricing

There is no advantage in the pricing of a JP policy. The cost is the same as if the lender were to be issued a separate CLTA Standard Coverage Policy. See Section 3.1 A of the 6/9/08 Rate Manual.

Notes

It is helpful to remember that the exceptions in a JP apply to both insureds. When dealing with an installment judgment that has been paid to date, it is appropriate to show the judgment (and Acknowledgment of Satisfaction - Matured Installment if one is being recorded concurrently) as subsequent to the lien of the insured loan.

When insuring the DVA as vendor under an agreement for sale along with the veteran vendee, it is appropriate to use the JP form. Using the JP form in other cases may require additional steps.

If you have questions relating to this bulletin, please contact California Underwriting Personnel or Stewart Legal Services.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF ALL CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AND 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:
Related Bulletins:
Underwriting Manual:
Exceptions Manual:
All content on Virtual Underwriter is subject to the terms shown here.