Bulletin: NJ2019001

Date:
January 30, 2019
To:
All New Jersey Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - Revised Rate Manual [Revised 1-31-19]

Dear Associates:

Changes have been made to the New Jersey Rate Manual effective February 1, 2019. Please take the opportunity to familiarize yourself with the updated Rate Manual, which the Department of Banking and Insurance has approved for use in New Jersey as of February 1, 2019. This revision affects a number of already approved forms as well as adds several new endorsements. The specific changes to existing forms are as follows:

  1. NJRB 1-16 ALTA Homeowner’s Policy. Changes were made to the page numbering and replaced the word “received” with “receives” on the Conditions Page (Continuation of Coverage Section 2, Subsection b(5). 
     
  2. NJRB 3-05 Important Notice and Disclosure. Section 2 now refers to the “Closing Protection Letter - Single Transaction” instead of the former name of “Closing Service Letter”.
     
  3. NJRB 5-87 ALTA Endorsement 3-06 (Zoning). Three changes were made to the form. First, Section 1.a. was revised for grammatical reasons. Second, Section 2.c. was revised to read “The refusal of any person to purchase, lease, or lend money on the Title covered by this policy”. Finally, an optional witness clause was included in the form.
     
  4.  NJRB 5-107 ALTA Endorsement 14-06 (Future Advance - Priority). Section 1.b. was revised to change “Advances” to “Advance”. 
     
  5. NJRB 5-114 ALTA Endorsement 16-06 (Mezzanine Financing). Grammatical changes were made to Sections 1 and 4.B.ii. 
     
  6. NJRB 5-121 ALTA Endorsement 20-06 (First Loss - Multiple Parcel Transaction).Grammatical changes were made to Sections 1.b, 2, 2.b, and Section 3. 
     
  7. NJRB 5-126 ALTA Endorsement 25.1-06 (Same as Portion of Survey).Grammatical changes were made to the first paragraph.
     
  8. NJRB 5-130 ALTA Endorsement 29.1-06 (Interest Rate Swap Endorsement - Addition Interest). Grammatical changes were made to Sections 1.c, 2, and 3.

In addition, the following new endorsements have been approved for use in New Jersey as of February 1, 2019:

  1. NJRB 5-174 ALTA Endorsement 11.1-06 (Mortgage Modification with Subordination). This endorsement is designed for issuance when an intervening lien is subordinated by agreement to the insured mortgage in connection with the modification of the insured mortgage. The charge for this endorsement is calculated under Rate Manual Section 4.6.2.
     
  2. NJRB 5-175 ALTA Endorsement 11.2-06 (Mortgage Modification with Additional Amount of Insurance).This endorsement is designed for issuance when a Mortgage Modification (“Modification”) is executed and additional insurance is requested. The charge for this endorsement is calculated under Rate Manual Section 4.6.2.
     
  3. NJRB 5-176 ALTA Endorsement 26-06 (Subdivision) New Jersey Variation. This endorsement provides assurances that the estate or interest insured will not be set aside by reason of a failure to obtain final subdivision approval. The charge for the issuance of this endorsement shall be 5% of the applicable Underwriting Charge with a minimum charge of $100.00. In the event of simultaneously issued policies, a single charge will be made based upon the higher liability.

    * Please also note that this endorsement replaces NJRB 5-61 Subdivision Endorsement. As of February 1, 2019, NJRB 5-61 is withdrawn and may not be used. 
      
  4. NJRB 5-177 New Jersey Partial Release of Mortgaged Premises Endorsement. When this endorsement is used for loan policies for 1-4 family residential properties, the charge is $50.00 plus the examination charge and applicable pass-through charges. Otherwise, the charge is $300.00 plus the examination charge and applicable pass-through charges. Please see Section 10.105 of the Rate Manual.
     
  5. NJRB 5-178 ALTA Endorsement 39-06 (Policy Authentication). This endorsement prevents the Insurer from denying liability when a claim is submitted solely on the grounds that the policy or any endorsement issued with the policy are issued electronically or lack signatures. However, the policy must contain a policy number and the Date of Policy. There is no charge for this endorsement. Please see Section 10.106 of the Rate Manual.

Copies of these endorsements and specific guidelines for the issuance of the same can be found on Virtual Underwriter. 

Please make sure to contact PropertyInfo Customer Care or whichever title production software vendor you use to get the new rates/forms updated in your systems. 

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.