Bulletin: FL2020004

Date:
November 11, 2020
To:
All Florida Issuing Offices
RE:
UNDERWRITING - Approval of New Endorsements

Dear Associates:

The Florida Office of Insurance Regulations recently approved revisions to the ALTA Endorsement 9.3-06 (Covenants, Conditions and Restrictions - Loan Policy) Revised 04-02-12 with Florida Modifications) and the ALTA Endorsement 12-06 (Aggregation - Loan Revised 4-02-13 with Florida Modification). It also approved three new endorsements: ALTA Endorsement 23-06 (Co-Insurance-Single Policy Revised 10-16-08 with Florida Modification); ALTA Endorsement 23.1-06 (Co-Insurance - Multiple Policies with Florida Modification); and ALTA Endorsement 39-06 (Policy Authentication) (04-02-13) with Florida Modification.

  1. ALTA 9.3-06. This endorsement is for loan policies only. Some lenders may request it as an alternative to the ALTA 9-06. The minimum premium for either endorsement is 10% of the premium for the loan policy or if the loan policy is being issued simultaneously with an owner’s policy, the minimum premium is 10% of the total premium for the owners and loan policies. 
  2. ALTA 12-06. This endorsement is only available for loan policies and is also known as the Tie-in endorsement. This endorsement allows the coverage provided for multiple loan policies to be combined so that the amount of coverage on any one parcel is equal to the amount of coverage on all policies subject to the endorsement. There is no charge for this endorsement. However, it requires the prior approval from Stewart Underwriting Counsel. 
  3. ALTA 23-06 and 23.1-06. These endorsements are available for both owners and loan policies. It allows title insurers to share the risk in insuring a particular transaction. Each co-insuring company shall be liable to the insured only for the amount of insurance and percentage of liability set forth in the endorsement. These endorsements would only be used in a high liability transaction and require the prior approval of Stewart Underwriting Counsel. There is no charge for these endorsements. 
  4. ALTA 39-06. This endorsement provides that coverage under the policy or any endorsements will not be denied solely on the grounds that the policy or endorsement were issued electronically or lack signature. There is no charge for this endorsement.

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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.