Bulletin: LA2014006

Date:
April 03, 2014
To:
All Louisiana Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - LATISSO 104, 105 and 106 Endorsements - Form and Rate Rule Changes

Dear Associates: 

The Louisiana Department of Insurance has approved a Form and Rate Rule Filing made by LATISSO effective April 1, 2014, for the endorsements referenced below.

LA 104 (Co-Insurance – Single Policy Modified to Add Limited Joint & Several Liability Provisions) 04/01/14 (effective 04/01/14)

This is a new endorsement form and rate rule. This endorsement is to be issued only in connection with commercial transactions. It is based on the ALTA 23-06 (Co-Insurance - Single Policy). It can be voluntarily requested by a sophisticated insured in a commercial transaction.  

The LA104 Endorsement that becomes effective 04/01/14 will be posted to www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    Given that each Co-Insurer will be individually liable to the insured for a pre-determined, specified limited joint and several liability amount, it seems reasonable to conclude that each Co-Insurer should receive the premium due and payable on that amount. However, beginning at the dollar amount above the joint and several liability figure, the applicable premium for the remaining liability would be allocated to the participating Co-Insurers based upon their respective Co-Insurance percentage.

LA 105 Special Measure of Loss – Loan Policy 04/01/14 (effective 04/01/14)

This is a new endorsement form and rate rule. This endorsement may only be issued with a Loan Policy in connection with an amendment to Condition 8(a)(iii) whereby Condition 8(a)(iii) is replaced in its entirety for the purpose of determining the extent of liability for the Company for loss or damage by reason of any defect, lien, encumbrance or other matter insured against by the Loan Policy to reflect the difference between:

(A)   The value of the Title as insured without the defect, taking into consideration, at the time notice of claim is given to the Company

(1)   The use or intended use of the Land as a single integrated site for a type of project; and

(2)   Income actually generated by the use; and

(B)   The value of the Title subject to the defect, taking into consideration the factors set forth in (A) (1) and (2) as referenced.

This endorsement may only be issued when the Amount of Insurance in Schedule A of the Policy includes the aggregate of the Full Value of the Land for the use or intended use of the Land as a single integrated site for a type of project and income actually generated by that use.

The LA105 Endorsement that becomes effective 04/01/14 will be posted to www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    15% of the Original Rate of the Policy and is in addition to the premium. Minimum charge $500.

LA 106 Special Measure of Loss – Owner Policy 04/01/14 (effective 04/01/14)

This is a new endorsement form and rate rule. This endorsement may only be issued with an Owner Policy in connection with an amendment to Condition 8(a)(ii) whereby Condition 8(a)(ii) is replaced in its entirety for the purpose of determining the extent of liability for the Company for loss or damage by reason of any defect, lien, encumbrance or other matter insured against by the Owner’s Policy to reflect the difference between:

(A)   The value of the Title as insured without the defect, taking into consideration, at the time notice of claim is given to the Company

(1)   The use or intended use of the Land as a single integrated site for a type of project; and

(2)   Income actually generated by the use; and

(B)   The value of the Title subject to the defect, taking into consideration the factors set forth in (A) (1) and (2) as referenced.

This endorsement may only be issued when the Amount of Insurance in Schedule A of the Policy includes the aggregate of the Full Value of the Land for the use or intended use of the Land as a single integrated site for a type of project and income actually generated by that use.

The LA106 Endorsement that becomes effective 04/01/14 will be posted to www.stewart.com/louisiana in the Forms and Policy Section.

Rate:    15% of the Original Rate of the Policy and is in addition to the premium. Minimum charge $500.

Questions relating to this bulletin may be directed to Louisiana Underwriting Personnel at (800) 209-4675 or Stewart Legal Services.

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.