- June 20, 2013
- All Ohio Issuing Offices
- RATES AND/OR FORMS UPDATE - New Rate and Forms Approved
The Ohio Title Insurance Rating Bureau has approved the following new form and rate for use in Ohio effective July 1, 2013:
ER-37 OTIRB OH-37 ASSIGNMENT OF RENTS AND LEASES (ALTA FORM 37-06)
This endorsement, subject to its terms and conditions, insures the Insured against loss or damage sustained by the Insured by reason of: 1) any defect in the execution of an assignment of rents or leases document identified in Schedule B; or 2) any assignment of a lessor’s interest in any lease or leases or any assignment of rents affecting the Title and recorded in the Public Records at Date of Policy other than as set forth in any instrument disclosed in Schedule B. The rate for this endorsement is $250.
Revisions to the following Forms were made and are now approved for use:
ALTA Short Form Residential Loan Policy (12-03-12)
ALTA Residential Limited Coverage Junior Loan Policy Revised 08-01-12
ALTA U.S. Policy Revised 12-03-12
ALTA Endorsement 3.2-06 (Zoning – Land Under Development) (04-02-12)
ALTA Endorsement 9.8-06 (Covenants Conditions and Restrictions – Land Under Development – Owner’s Policy) (04-02-12)
ALTA Endorsement 14.3-06 (Future Advance – Reverse Mortgage) Revised 02-03-11
Finally, take note that rate rule ER-112.1 approved for use as of May 1, 2013, has been amended to provide clarification and eliminate any potential misinterpretation. The revised rule is as follows:
ER-112.1 DELETION OF GENERAL EXCEPTION FOR MECHANICS’ LIENS - OWNER’S POLICY OR HOMEOWNER’S POLICY
When mechanics’ lien coverage is provided in an Owner’s Policy or a Homeowner’s Policy, whether within the express insuring provisions of the Policy issued or by the absence or deletion of the general exception for mechanics’ liens:
a. When there is a risk of loss due to mechanics’ lien claims, as determined by the underwriter, the premium shall be forty percent (40%) of the Original Rate for such policy as set forth in Rule PR-1 or Rule PR-1.1 hereof, and is in addition to the Policy premium. The minimum premium shall be $500.00.
b. All other deletions of the general exception or affirmative coverage shall be ten percent (10%) of the Original Rate for such policy as set forth in Rule PR-1 or Rule PR-1.1 hereof, and is in addition to the Policy premium. The minimum premium shall be 250.00.
NOTE: Pay particular attention to ER-112.1. This provision mandates an additional 10% premium when deleting the standard mechanics' lien exception on owner policies, or when insuring against mechanics' liens in the express insuring provisions of the Homeowner Policy, where there has been no pre-start and you are relying on the standard owner affidavit that no work has been performed or material furnished to the premises. Where there has been a pre-start, the rate addition will increase to 40%. Application of these rates is subject to underwriter approval.
Click here for a link to the Ohio Rate Manual effective July 1, 2013 (updates forthcoming), and for the new endorsements and forms approved for use in Ohio.
Remember that when you are reporting and remitting, all endorsements must be properly coded with the proper transcodes. Here is a link to the current transcodes.
Agents using AIM For Windows or AIM+ should contact PropertyInfo Customer Care to get the new rate(s) changes implemented in their AFW or AFW+ system.
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.
- Bulletins Replaced:
- Related Bulletins:
- Underwriting Manual:
- Exceptions Manual:
- ALTA Endorsement 14.3-06 (Future Advance - Reverse Mortgage) Revised 02-03-11
- ALTA Endorsement 3.2-06 (Zoning - Land Under Development) (04-02-12)
- ALTA Endorsement 37-06 (Assignment of Rents or Leases) (12-03-12)
- ALTA Endorsement 9.8-06 (Covenants Conditions and Restrictions - Land Under Development - Owner's Policy) (04-02-12)
- ALTA Residential Limited Coverage Junior Loan Policy Revised 08-01-12
- ALTA Short Form Residential Loan Policy (12-03-12)
- ALTA U.S. Policy Revised 2012