Bulletin: LA2020001

Date:
February 26, 2020
To:
All Louisiana Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - LATISSO Rates and Forms for Title Insurance in the State of Louisiana - Effective April 1, 2020

Dear Associates:

The Louisiana Department of Insurance has approved changes to the LATISSO Manual of Rates and Forms for Title Insurance in the State of Louisiana which are effective April 1, 2020. The updated Rate and Form Manual will be posted to www.stewart.com/louisiana in the Forms and Policy Section. The changes are as follows:

Section 1 - General Provisions and Definitions

GP 7 Definitions: Definitions listed in this section have been alphabetized and terminology changed to be consistent with terminology in policy and endorsement forms.

Section 2 - Provisions for Policy Rates and Rules

Rate Rule PR 4.1 Simultaneous Issuance of Owner and Leasehold Owner Policies

This is a new rate rule to the LATISSO Rate and Form Manual. It is applicable under the following circumstances:

When policies are issued simultaneously to the Owner and Leasehold Owner (Lessee) by the same Insurer having the same Date of Policy and insuring the same Land or a portion thereof, the premium shall be 130% of the premium computed on the policy with the higher Amount of Insurance.

Rate Rule PR 4.2 Substitution Credit for Loan Policies

This is a new rate rule to the LATISSO Rate and Form Manual. It is applicable under the following circumstances:

If an existing loan policy was issued by any Insurer with the same borrower, on the same Land or a portion thereof, and to the same or a different lender, upon furnishing evidence of the existing Loan policy prior to the new loan transaction, a Substitution Credit shall be applied. The Substitution Credit shall be calculated by multiplying sixty percent (60%) times the Original Title Insurance Rate for Loan Policies up to the amount of the unpaid principal balance of the existing loan. The Original Title Insurance Rate for Loan Policies shall be charged on any Amount of Insurance in excess of the unpaid principal balance.

The minimum premium shall be $100

Rate Rule PR 4.3 Reissue Credit for Owner’s Policies

This is a new rate rule to the LATISSO Rate and Form Manual. It is applicable under the following circumstances:

A purchaser or lessee of Land, from one whose title to the Land or part thereof, as owner, has been insured by any Insurer within 10 years prior to the issuance of a new Owner’s or Leasehold Owner’s policy shall be entitled to the Reissue Credit for a new Owner’s or Leasehold Owner’s policy upon furnishing evidence of the existing Owner’s policy prior to the new transaction. The Reissue Credit shall be calculated by multiplying sixty percent (60%) times the Original Title Insurance Rate for Owner’s Policies up to the Amount of Insurance of the existing Owner’s policy. The Original Title Insurance Rate for Owner’s Policies shall be charged on any Amount of Insurance in excess of the existing owner’s policy.

The minimum premium shall be $100.

Rate Rule PR 4.4 Reissue Credit for Loan Policies

This is a new rate rule to the LATISSO Rate and Form Manual. It is applicable under the following circumstances:

An insured under an Owner’s or Leasehold Owner’s policy issued by any Insurer who is now granting a mortgage on the Land or any part thereof to be insured by a Loan policy shall be entitled to the Reissue Credit For Loan Policies. The Reissue Credit shall be calculated by multiplying sixty percent (60%) times the Original Title Insurance Rate for Loan Policies up to the Amount of Insurance of the existing Owner’s policy. The Original Title Insurance Rate for Loan Policies shall be charged on any Amount of Insurance in excess of such Owner’s policy.

The minimum premium shall be $100.

Rate Rule PR 4.5 No Reissue Credit for New Leasehold Policy

This is a new rate rule to the LATISSO Rate and Form Manual. It is applicable under the following circumstances:

The owner of a new leasehold is not entitled to a reissue rate.

Rate Rule PR 4.6 Mechanic’s and Materialmen’s Lien Protection

This is a new rate rule to the LATISSO Rate and Form Manual. It is applicable under the following circumstances:

Insurance against unfiled mechanic’s and materialmen’s liens may be afforded in both Owner’s and Loan Policies:

A. For no charge under either of the following conditions:

1. If it is established to the satisfaction of the insurer that there have been no improvements or betterments made within the statutory lien period preceding the issuance of the policy.

2. If improvements and betterments not exceeding $100 have been made within the statutory lien period and such requirements and conditions as the title underwriter may impose for its protection have been met to its satisfaction.

B. For a charge under the following conditions:

1. If improvements and betterments exceeding $100 have been made within such statutory lien period and such requirements and conditions as the insurer may impose for its protection have been met to its satisfaction, and

a) If the protection is to be given in an Owner’s Policy and only as to work performed by or on behalf the Seller in the transaction, when approved by the insurer, then the following premium, in addition to the premium due for title insurance coverage, shall be charged:

FOR ORIGINAL (REGULAR OWNER POLICY COVERAGE)
To calculate for ALTA Homeowner (Expanded) Owner Policy, multiply the Additional Cost by 110%

Liability

Additional Cost

From

To

per $1,000*

Up to and including $12,000

$100

$12,001

$50,000 add

$1.80

$50,001

$100,000 add

$0.96

$100,001

$500,000 add

$0.90

$500,001

$1,000,000 add

$0.72

$1,000,001

$2,000,000 add

$0.60

$2,000,001

$10,000,000 add

$0.54

$10,000,001

$15,000,000 add

$0.48

$15,000,001

$25,000,000 add

$0.42

$25,000,001

$35,000,000 add

$0.36

$35,000,001

And Above

$0.30

* Minimum Premium shall be $100

* Minimum Premium shall be $100

b) If the protection is to be given in a Loan Policy, then the following premium in addition to the premium due for title insurance coverage, shall be charged:

FOR ORIGINAL (REGULAR MORTGAGEE POLICY COVERAGE)
To calculate for ALTA Expanded Coverage Mortgagee Policy, multiply the Additional Cost by 110%

Liability

Additional Cost

From

To

per $1,000*

Up to and including $12,000

$100

$12,001

$50,000 add

$0.84

$50,001

$100,000 add

$0.72

$100,001

$500,000 add

$0.66

$500,001

$1,000,000 add

$0.54

$1,000,001

$2,000,000 add

$0.48

$2,000,001

$15,000,000 add

$0.42

$15,000,001

$25,000,000 add

$0.36

$25,000,001

$35,000,000 add

$0.30

$35,000,001

And Above

$0.24

* Minimum Premium shall be $100

* Minimum Premium shall be $100

Section 4 –Schedule of Rates and Rules for Endorsements

ALTA 3.3 (Zoning-Completed Improvement - Non-Conforming Use) 12-01-18

This is a new endorsement. It may be issued with either an Owner Policy or a Loan Policy. It is issued on Land improved with an existing building where there is known non-conforming use. Subject to its terms, conditions and exceptions, it insures the Insured against loss or damage:

  • If a specified non-conforming use is not allowed because it violates a zoning regulation
  • If a final court order is issued either prohibiting the present non-conforming use or requiring removal or alteration of the existing building because the non-conforming use violates a zoning regulation as to (i) area, width or depth of the Land as a building site for the building (ii) floor space area of the building (iii) set back of the building (iv) height of the building or (v) number of parking spaces

The ALTA 3.3 (Zoning-Completed Improvement-Non Conforming Use) 12-01-18 has been assigned the form number E-9235 and will be posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format.
Please contact your software support group for assistance with set up in your software system.

Rate is: 20% of the Original Rate, in addition to the policy premium, subject to a minimum premium of $250

LATISSO Rate Rule ER 3.3

ALTA 3.4 (Zoning-No Zoning Classification) 12-01-18

This is a new endorsement. It may be issued with either an Owner Policy or a Loan Policy. It is issued on Land improved with an existing structure where there is no zoning classification. Subject to its terms, conditions and exceptions, it insures the Insured against loss or damage:

  • If a specified use is not allowed because it violates a zoning regulation
  • If a final court order is issued either prohibiting the present use or requiring removal or alteration of the existing structure because the use violates a zoning regulation as to (i) area, width or depth of the Land as a building site for the structure (ii) floor space area of the structure (iii) set back of the structure (iv) height of the structure or (v) number of parking spaces

The ALTA 3.4 (Zoning-No Zoning Classification) 12-01-18 has been assigned the form number E-9236 and will be posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format.

Please contact your software support group for assistance with set up in your software system.

Rate is: 20% of the Original Rate, in addition to the policy premium, subject to a minimum premium of $250

LATISSO Rate Rule ER 3.4

ALTA 9 (Restrictions Encroachments Minerals - Loan Policy) Rev 04-02-12 Technical Corrections 08-01-16 and 12-01-18

This is a revision to the ALTA 9 endorsement version of 08-01-16 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9178. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains 10% of the Original Rate with a minimum premium of $150

LATISSO Rate Rule ER 9

ALTA 15.2 (Non-Imputation-Partial Equity Transfer) 06-17-06 Technical Correction 08-01-15

This is a revision to the ALTA 15.29 endorsement version of 06-17-06 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9359. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains 15% of the Original Rate for Owner’s Policies, for the policy to which it is attached and is in addition to the policy rate.

Minimum premium is $150

LATISSO Rate Rule ER 15.2

ALTA 18.3 (Single Tax Parcel and ID) 12-01-18

This is a new endorsement. It may be issued with either an Owner Policy or a Loan Policy. It is issued on Land that consists of only one tax parcel. Subject to its terms, conditions and exceptions, it insures the Insured against loss:

  • If the Land is taxed as part of a larger parcel or if the Land fails to constitute a separate tax parcel for real estate taxes
  • If any portion of the Land is not being assessed for real estate taxes under the specified tax identification number

The ALTA 18.3 (Tax Parcel and ID) 12-01-18 has been assigned the form number E-9237 and will be posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format.

Please contact your software support group for assistance with set up in your software system.

Rate is: $75

LATISSO Rate Rule ER 18.3

ALTA 32 (Construction Loan) 02-03-11 Technical Correction 12-01-18

This is a revision to the ALTA 32 endorsement version of 02-03-11 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9171. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains 25% of the Original Rate for Loan Policies as set forth in Rule PR-2 hereof, for the policy to which it is attached and is in addition to the policy premium.

The minimum premium is $250

LATISSO Rate Rule ER 32

ALTA 32.1 (Construction Loan - Direct Payment) 04-02-13 Technical Correction 12-01-18

This is a revision to the ALTA 32.1 endorsement version of 04-02-13 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9143. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains 15% of the Original Rate for Loan Policies as set forth in Rule PR-2 hereof, for the policy to which it is attached and is in addition to the policy premium.

The minimum premium is $250

LATISSO Rate Rule ER 32.1

ALTA 32.2 (Construction Loan - Insured’s Direct Payment) 08-01-12 Rev 04-02-13 Technical Correction 12-01-18

This is a revision to the ALTA 32.2 endorsement version of 04-02-13 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9144. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains 20% of the Original Rate for Loan Policies as set forth in Rule PR-2 hereof, for the policy to which it is attached and is in addition to the policy premium.

The minimum premium is $250

LATISSO Rate Rule ER 32.2

LA 101 (Multiple Indebtedness Mortgage) 04-01-09 Rev 04-01-20

This is a revision to the LA 101 endorsement version of 04-01-09 to be better suited for issuance with the current 2006 ALTA Loan Policy by removing the definition of “Insured” from this endorsement. The change is technical in nature and does not revise the scope and intent of this endorsement. The form number has not changed and remains E-3124. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains $100

LATISSO Rate Rule ER 101

LA 108 (Date Down - Loan Policy) 04-01-20

This is a new endorsement. It may be issued only with a Loan Policy. Subject to its terms, conditions and exceptions, it insures the Insured against loss or damage occurring or discovered subsequent to the date of the policy up to and including the date of LA 108 Date Down Endorsement.

The LA 108 (Date Down - Loan Policy) 04-01-20 has been assigned the form number E-3156 and will be posted to www.stewart.com/louisiana in the Forms and Policy Section in Word format.

Please contact your software support group for assistance with set up in your software system.

Rate is: Fifty Cents ($0.50) per thousand on the unpaid balance

LATISSO Rate Rule ER 108

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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.