- March 27, 2009
- All Louisiana Issuing Offices
- Rate Rule Change
The Louisiana Department of Insurance has approved the following change to the LATISSO Rate Rule for the Simultaneous Issuance of Owner's and Mortgagee's Policies. The Rate Rule change is effective April 1, 2009, and is as follows:
Simultaneous Issuance of Owner's and Mortgagee's Policies
When an owner's policy and a mortgagee's policy are issued simultaneously, bearing the same date, and covering the same land (or a portion thereof) but no additional land, and the mortgagee's policy coverage is equal to or less than that of the owner's policy; the charge for the owner's policy shall be at the filed rate and a simultaneous issue rate of $100 shall be charged for the mortgagee's.
When the mortgagee's policy coverage exceeds that of the owner's policy, the premium for the owner's policy shall be at the filed rate and the additional coverage afforded on the mortgagee's policy shall be calculated using the mortgagee's policy filed rate, plus a $100 simultaneous issue fee.
This provision does not apply to simultaneous first and second mortgage transactions; but does apply to Expanded Coverage Owners and Expanded Coverage Mortgagee Policies.
An Owner's Policy is requested for $267,000 with a Mortgagee's policy of $225,000. The rate is "per thousand," so divide by 1000 leaving us with 267.
° First $12,000 cost $100.00
° Next $38,000 (38 x $5.40) cost $205.20
° Next $50,000 (50 x $4.80) cost $240.00
° Last $167,000 (167 x $4.50) cost $751.50
° All added together give a total premium of $1,296.70
The mortgagee's policy would be $100.00, plus, all applicable endorsements.
When a Mortgagee's policy amount exceeds the Owners policy amount:
Owner's Policy Amt. $30,000.00
Owner's Premium Rate $197.20
Simultaneous Issue Rate $100.00
Subtotal Premium $297.20
Loan Policy Amt. $70,000.00
Loan Premium Rate $331.60
Less Premium Rate on
Balance Due - Loan Policy $156.00
Total Premium Collected: $453.20
The Louisiana Rate and Form Manual has been updated to reflect the addition of these new forms and new rates. Please go to www.stgla.com for the updated manual and the new forms in electronic format.
If you have questions relating to this bulletin, please contact Louisiana Underwriting Personnel at (800) 209-4675 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 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.
- Bulletins Replaced:
- Related Bulletins:
- Underwriting Manual:
- Exceptions Manual:
- ALTA Expanded Coverage Residential Loan Policy (1/1/08)
- ALTA Homeowner's Policy of Title Insurance (1/1/08)
- ALTA Loan Policy 2006
- ALTA Owner's Policy 2006
- ALTA Short Form Expanded Coverage Residential Loan Policy (1/1/08)
- ALTA Short Form Residential Loan Policy and Addendum (6/16/07) (Check Box and Automatic List)