Bulletin: NY000153

Date:
November 14, 1997
To:
All New York State Office Counsel, Managers and Agents
RE:
Changes to TIRSA Rate Manual Approved 10/21/97

Dear Associates:

This is the second of three bulletins which are intended to explain the changes to the TIRSA Rate Manual which were approved and became effective on October 21, 1997. The Department of Insurance approved a revised non-imputation endorsement for use with an owner's policy which insures the interest of a person or entity acquiring an interest in a corporation, partnership, or other entity which owns real property. The endorsement replaces the two existing forms of non-imputation endorsement.

The new form makes it clear that the insured under the policy and endorsement would be a partner, member or shareholder who is acquiring an interest in an entity that holds real property, and that the insurance provided by the endorsement is solely for the benefit of such partner, shareholder or member, and not the record owner of the property.

The endorsement also provides that any loss payable under the Policy would be limited to an amount representing the ownership interest of the insured in the entity that owns real property, or the difference in value of the insured estate as insured and the value of said estate subject to the defect, lien or encumbrance, which caused the loss or the amount of insurance in Schedule A of the Policy, whichever is lowest.

Finally, the endorsement prevents the possibility of a double recovery by reducing the amount to be paid to the insured under the policy containing the non-imputation endorsement by any amount received by the insured under any other policy of title insurance affecting the premises.

The endorsement is to be sued solely in conjunction with an owner's policy which insures the interest of an incoming partner, member or shareholder in an entity that owns real property. The charge for the premium, which is 20% of the regular fee rate, remains the same. The form of validating language has, as in the EPA and TIRSA-RCE endorsements, been left to the discretion of each underwriter.

Should you have any questions regarding the endorsement, please do not hesitate to contact the New York City office.

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.

References

Bulletins Replaced:
None
Related Bulletins:
NY000152 Changes to TIRSA Rate Manual Approved 10/21/97
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None