- March 15, 1995
- New York State Counsel, Managers and Agents
- Underwriting Guidelines for New TIRSA Endorsements
Effective January 31, 1995, the New York State Insurance Department approved Revision 2 of the TIRSA Rate Manual, which contains seven new endorsements (and a correction to the official version of the Reverse Mortgage Endorsement). The rate manual update and the endorsements have been sent to you under separate cover.
The following pages are revised underwriting guidelines for the existing Fairway Endorsement and Non-Imputation Endorsement, as well as guidelines for the seven new endorsements:
1. TIRSA Swap Endorsement* at the regular per-thousand rate, for coverage above the policy face amount
2. Additional Interest Endorsement* at the regular per-thousand rate, for coverage above the policy face amount.
3. First Loss Endorsement* at 10% of the regular mortgage premium
4. Last Dollar Endorsement* at 10% of the regular mortgage premium
5. Contract Vendee Endorsement - This endorsement should be listed in Section 25 (A) as a "no charge" endorsement. The rate manual (1.25(C)(12) says "refer to SECTION 29 - CONTRACT VENDEE INSURANCE" for rate, but the rate is for the insurance, not the endorsement. The 12/1/94 Commentary to TIRSA's submission to the Insurance Department indicates the endorsement charge is the full policy premium, meaning the policy must be free!
6. TIRSA Cluster Endorsement* at $25.00
7. TIRSA Limited Liability Company and Limited Liability Partnership Endorsement at $25.00
(* Endorsements marked with an asterisk (*) each require underwriter approval for issuance.)
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.