Bulletin: OH2015003

Date:
November 24, 2015
To:
All Ohio Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New Forms Approved

Dear Associates:

The Ohio Title Insurance Rating Bureau has approved the following new Form and Rates for use in Ohio, effective December 1, 2015:

ER-9.6.1 OTIRB OH-9.6.1 PRIVATE RIGHTS - CURRENT ASSESSMENTS - LOAN POLICY (ALTA FORM 9.6.1)

This endorsement, subject to its terms and conditions insures the Insured under a Loan Policy against loss or damage due to the enforcement of a “Private Right” in a covenant that results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage, or, that causes a loss of the Insured’s title acquired in satisfaction or partial satisfaction of the indebtedness. “Private Right” is defined as (i) a private charge or assessment due and payable at Date of Policy; (ii) an option to purchase; (iii) a right of first refusal; or (iv) a right of prior approval of a future purchaser or occupant. The rate for this endorsement is five cents ($.05) per thousand dollars of the policy amount, or any fraction thereof. The minimum rate is $150. 

If this endorsement is issued in conjunction with a new policy which new policy qualifies for a reissue rate or refinance rate under Rate Rule PR-4, PR-9 or PR-10, and this endorsement was also issued in conjunction with the prior policy, then the rate for this endorsement shall be seventy percent (70%) of the Original Rate for this endorsement. 

If the ALTA 9.0-06, ALTA 9.3-06 or ALTA 9.7-06 is issued in conjunction with the ALTA 9.6.1-06 on the same policy, the minimum premium for each endorsement shall be$75.

ER-19.2 OTIRB OH-19.2 CONTIGUITY - SPECIFIED PARCELS (ALTA FORM 19.2) 

This endorsement may be issued with an Owner’s Policy or a Loan Policy and insures against loss or damage sustained by the Insured by reason of there being any gaps, strips, or gores lying within or between specified parcels as depicted in a referenced survey. 

The rate for this endorsement shall be $50.

ER-28.3 OTIRB OH-28.3 ENCROACHMENTS - BOUNDARIES AND EASEMENTS - DESCRIBED IMPROVEMENTS AND LAND UNDER DEVELOPMENT (ALTA FORM 28.3) 

This endorsement to an Owner’s Policy or Loan Policy, subject to its terms, conditions and exceptions, insures the Insured against loss or damage sustained by reason of an encroachment of an Improvement or Future Improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement; an encroachment of any Improvement located on adjoining land onto the Land at Date of Policy; enforced removal of any Improvement or Future Improvement located on the Land as a result of an encroachment by the Improvement or Future Improvement onto any portion of the Land subject to any easement, in the event that the owners of the easement shall, for purposes of exercising the right of use or maintenance of the easement, compel removal or relocation of the encroaching Improvement or Future Improvement; or enforced removal of any Improvement or Future Improvement located on the Land that encroaches onto adjoining land. 

The rate for this endorsement shall be as follows: (A) If there are no known encroachments, the rate shall be $350. (B) If there are known encroachments and they are not excepted from coverage by Section 4 of the endorsement or otherwise, the rate shall be $500 for the first encroachment and $250 for each additional encroachment.

ER-36.7 OTIRB OH-36.7 ENERGY PROJECT – FEE ESTATE – OWNER’S POLICY (ALTA FORM 36.7)

This endorsement may only be issued with an Owner’s Policy issued in connection with an “energy project”, including those designed to harvest wind and solar energy. The endorsement, subject to its terms and conditions, adds some energy project-specific definitions; expands the “Valuation of Title” section to make clear that the computation of loss or damage for a covered defect affecting one parcel (or fewer than all parcels) shall include resulting loss or damage to the “integrated project”; builds in coverage for “Severable Improvements” (as defined); changes the “Additional Items of Loss” section as appropriate to the energy project context; and adds a new exclusion addressing costs of remediation resulting from environmental damage or contamination. 

The endorsement shall only be issued when the Amount of Insurance in Schedule A of the Policy includes the aggregate of the Full Value of the Land or Full Value of the Fee Estate and Full Value of the Severable Improvements, and the Full Value of the Electricity Facility. 

The rate for this endorsement is $500 and is in addition to the premium for the Policy. 

ER-36.8 OTIRB OH-36.8 ENERGY PROJECT – FEE ESTATE – LOAN POLICY (ALTA FORM 36.8) 

This endorsement may only be issued with a Loan Policy issued in connection with an “energy project”, including those designed to harvest wind and solar energy. The endorsement, subject to its terms and conditions, adds some energy project-specific definitions; expands the “Valuation of Title” section to make clear that the computation of loss or damage for a covered defect affecting one parcel (or fewer than all parcels) shall include resulting loss or damage to the “integrated project”; builds in coverage for “Severable Improvements” (as defined); changes the “Additional Items of Loss” section as appropriate to the energy project context; and adds a new exclusion addressing costs of remediation resulting from environmental damage or contamination. 

The endorsement shall only be issued when the Amount of Insurance in Schedule A of the Policy includes the aggregate of the Full Value of the Land or Full Value of the Fee Estate, and Full Value of the Severable Improvements, and the Full Value of the Electricity Facility. 

The rate for this endorsement is $500 and is in addition to the premium for the Policy.

ER-39 OTIRB OH-39 POLICY AUTHENTICATION (ALTA FORM 39) 

This endorsement, subject to its terms and conditions, insures the insured under a Loan Policy or Owner’s Policy that the Insurer will not deny liability under the policy or any endorsements issued with the policy solely on the grounds that the policy or endorsements were issued electronically or lack signatures in accordance with the Conditions. There shall be no premium rate for this endorsement. 

ER-45 OTIRB OH-45 PARI PASU MORTGAGE – LOAN POLICY (ALTA 45) 

This endorsement, subject to its terms, conditions and exclusions, insures against loss or damage sustained by the Insured by reason of the invalidity or unenforceability of the lien of the Insured Mortgage solely due to the provisions of a PariPasu Mortgage (as defined in the endorsement) or an Intercreditor Agreement (as defined in the endorsement) establishing lien priority or the lack of equal lien priority of the Insured Mortgage with the other PariPasu Mortgages.

The rate for this endorsement shall be ten percent (10%) of the Original Rate for the Loan Policy as set forth in PR-8 hereof, for the policy to which it is attached and is in addition to the policy premium. The minimum rate for this endorsement shall be $250.

Revisions to the following Form were made and are now approved for use. Please note that additions made to this form are merely technical in nature and do not otherwise change the coverage:

ALTA OWNER’S POLICY ADOPTED 6-17-06

The Ohio Rate Manual effective December 1, 2015, will be published shortly. The new endorsements and forms approved for use in Ohio are set forth below in the references section of this bulletin.

Remember that when you are reporting and remitting, all endorsements must be properly coded with the proper 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.