- September 23, 1995
- All New York State Office Counsel, Managers and Agents
- Department of Insurance Approves Cooperative Endorsement Revision
The New York State Department of Insurance recently approved a technical revision to the Cooperative Endorsement (both Owner's and Loan) which had been previously approved for use in New York on August 15th, 1994. The original endorsement, which provided insurance against loss or damage sustained by an insured by reason of enumerated defects and states of fact, added a subparagraph (h) to Section 1 of the Stipulations and Conditions of Coverage in the 10-17-92 ALTA Policy. A proprietary leasehold estate is defined in subparagraph (h) (i) as "the right of possession for the term or terms described in the proprietary lease subject to any provisions contained therein which limit the right of possession".
In addition, a new Section 14 of the Conditions and Stipulations was inserted into the Policy by the original endorsement which provided that if loss or damage to the insured had to be computed, the value of the insured estate would consist of its "then present fair market value", undiminished by any matters on which the claim was based for "the part of the term" (of the proprietary lease) "stated in Schedule A then remaining".
The above-mentioned provisions raised concern as to whether extensions or renewals of the proprietary lease would be covered by the endorsement. In response to those concerns, amended cooperative endorsements (Owner's and Loan) which would provide coverage for valid extensions and renewals of a proprietary lease were submitted by the Title Insurance Rate Service Association (TIRSA) to the Department of Insurance for approval. See reference section below for a copy of both owner and loan coopertive endorsements. Copies of the endorsement, as amended, will be printed and distributed to you as soon as they become available.
Should you have any questions regarding this amendment, please contact Company Counsel.
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.