Bulletin: LA2012001

Date:
August 13, 2012
To:
All Louisiana Issuing Offices
RE:
ALTA Expanded Coverage Residential Loan Policy 07/26/10 - (09/01/2012); ALTA Short Form Expanded Coverage Residential Loan Policy 07/26/10 - (09/01/2012); Form Filing Change

Dear Associates: 

The Louisiana Department of Insurance has approved the following changes to the LATISSO Form filing for the policies referenced below. These Form changes are effective September 1, 2012, and are as follows: 

ALTA Expanded Coverage Residential Loan Policy – 07/26/10 (effective 09/01/12)  

ALTA revised the Expanded Coverage Residential Loan Policy on 07/26/10.  The change from the previous version is found in the Conditions section, Paragraph 8, Determination and Extent of Liability, (iii), which makes this policy consistent with the 2006 ALTA Loan Policy.  LATISSO has incorporated further revision by adding to Section 28 of the Covered Risks and adding to Schedule A as shown below.  All of these changes have been approved with an effective date of 09/01/12.  This revision replaces the prior version.  Stewart has assigned policy prefix 3131 to this new form.  

  • Amendment to the language immediately following Covered Risk 28 relating to the incorporation of several endorsements.  The additional language reads: 

Upon payment of the appropriate premium, the following American Land Title Association endorsements are incorporated in this policy if checked in Schedule A: 

(a) ALTA Form 4-06 (Condominium),
(b) ALTA Form 4.1-06 (Condominium)
(c) ALTA Form 5-06 (Planned Unit Development);
(d) ALTA Form 5.1-06 (Planned Unit Development);
(e) ALTA Form 6-06 (Variable Rate Mortgage);
(f)  ALTA Form 6.2-06 (Variable Rate Mortgage - Negative Amortization); and
(g) ALTA Form 8.1-06 (Environmental Protection Lien) subject to LSA-.S.30:2281
(h) ALTA Form 9.3-06 (Restrictions, Encroachments, Minerals). 

  • Amendment to Schedule A immediately following Paragraph 5 to provide a "checkbox" style listing of the above endorsements which shall be used to indicate which, if any, of these endorsements payment of premium has been made for and, accordingly, incorporated into the policy. 

Subject to the conditions stated in the endorsements listed below and payment of the appropriate premium, the following ALTA endorsements are incorporated in this policy if checked: 

    • ALTA Form 4-06 (Condominium);
    • ALTA Form 4.1-06 (Condominium);
    • ALTA Form 5-06 (Planned Unit Development);
    • ALTA Form 5.1-06 (Planned Unit Development);
    • ALTA Form 6-06 (Variable Rate Mortgage);
    • ALTA Form 6.2-06 (Variable Rate Mortgage - Negative Amortization);
    • ALTA Form 8.1-06 (Environmental Protection Lien) subject to LSA-.S.30:2281; and
    • ALTA Form 9.3-06 (Restrictions, Encroachments, Minerals).

Rate has not changed and remains at 110% of the Original Rate for Loan Policy plus the premium for any endorsement(s) added separately or incorporated in the policy at the rate applicable for such endorsement(s).

The ALTA Expanded Coverage Residential Loan Policy - Revised 07/26/10 (effective 09/01/12) can only be issued in connection with one-to-four family residential improved property or an individual condominium unit. Please refer to Stewart's LA Rate and Form Manual for a more detailed guideline on the ALTA Expanded Coverage Residential Loan Policy Revised 07/26/10 (effective 09/01/12).

ALTA Short Form Expanded Coverage Residential Loan Policy - Revised 07/26/10 (effective 09/01/12)

ALTA revised the Short Form Expanded Coverage Residential Loan Policy on 07/26/10.   The change from the previous version is found in the language just above the Schedule B heading making reference to the incorporation of the American Land Title Association Expanded Coverage Residential Loan Policy – 07/26/10 (effective 09/01/012) and adding to Schedule A as shown below.  All of these changes have been approved with an effective date of 09/01/12.  This revision replaces the prior version.  Stewart has assigned policy prefix 3132 to this new form. 

  • Amendment to the language just above the Schedule B heading: 

Subject to the exceptions from coverage contained in Schedule B below, and any addendum attached hereto, Stewart Title Guaranty Company, a Texas Corporation, herein called the “Company”, hereby insures in accordance with and subject to the terms, exclusions and conditions set forth in the American Land Title Association Expanded Coverage Residential Loan Policy – 07/26/10 (effective 09/01/12), all of which are incorporated herein.  All references to schedules A and B shall refer to schedules A and B of this policy. 

  • Amendment to Schedule A immediately following the last paragraph to provide a "checkbox" style listing of endorsements which shall be used to indicate which, if any, of these endorsements payment of premium has been made for and, accordingly, incorporated into the policy. 

Subject to the conditions stated in the endorsements listed below and payment of the appropriate premium, the following ALTA endorsements are incorporated in this policy if checked: 

    • ALTA Form 4-06 (Condominium);
    • ALTA Form 4.1-06 (Condominium);
    • ALTA Form 5-06 (Planned Unit Development);
    • ALTA Form 5.1-06 (Planned Unit Development);
    • ALTA Form 6-06 (Variable Rate Mortgage);
    • ALTA Form 6.2-06 (Variable Rate Mortgage - Negative Amortization);
    • ALTA Form 8.1-06 (Environmental Protection Lien) subject to LSA-.S.30:2281; and
    • ALTA Form 9.3-06 (Restrictions, Encroachments, Minerals). 

Rate has not changed and remains at 110% of the Original Rate for Loan Policy plus the premium for any endorsement(s) added separately or incorporated in the policy at the rate applicable for such endorsement(s)

The ALTA Short Form Expanded Coverage Residential Loan Policy Revised 07/26/10 (effective 09/01/12) can only be issued in connection with one-to-four family residential improved property or an individual condominium unit. Please refer to Stewart's LA Rate and Form Manual for a more detailed guideline on the ALTA Short Form Expanded Coverage Residential Loan Policy Revised 07/26/10 (effective 09/01/12). 

The Louisiana Rate and Form Manual has been updated to reflect the change in the Form for these endorsements. Please go to www.stgla.com for the updated manual and the revised forms in electronic format (available 09/01/12). 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter. 

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.