Bulletin: NJ000046

Dear Associates:

Effective January 3, 2000, the Department of Banking and Insurance, at the request of the New Jersey Land Title Insurance Rating Bureau, has approved certain technical amendments to the Rate Manual. These amendments are largely an effort to update the language in various sections of the manual to more clearly coincide with new forms and other changes that have been made to the manual over the last several years.

Two amendments may be considered substantive:

Section

3.5 Split into two subsections to reflect "joint" and "joint and several" co-insurance. This change will result in a somewhat lower charge for title insurance in cases of "joint" co-insurance.

4.6.1 Amended to delete the requirement for production of proof of a prior policy issued within ten years.

A "blacked line" copy of the pages in question is available through the New Jersey District office. These pages provide for easy reference in reviewing the changes.

Also available through the New Jersey District office is a "clean" three hole punched copy of the pages. You will need to remove the old pages from your manual and replace the pages with the "clean" pages.

Please make sure all licensed personnel in your office are familiar with the changes.

The following is a summary of the technical amendments:

Section

3.4 Revised to reflect and clarify the case where a standard coverage loan policy and enhanced coverage owner's policy are issued simultaneously.

4.8 A new section addressing the underwriting charge for enhanced coverage policies, but substantively the same as 10.29.

4.9 A new section addressing the underwriting charge for the Balloon Loan Modification Limited Policy, but substantively the same as 10.30.

10.18 Change in form heading.

10.19 Added language for simultaneous issuance.

10.20 Added language for simultaneous issuance.

10.21 Added language for simultaneous issuance.

10.22 Change in form heading.

10.29 Revised to refer to only conversion endorsement, follows 4.8.

10.30 Now refers to section 4.9.

10.36 Added language for simultaneous issue.

10.37 New section, follows 4.6.2 for ALTA 11, mortgage modifications.

10.38 New section, follows 4.5 for special construction loan endorsement.

A-3/3.4 New example to illustrate the calculation of the underwriting charge when a standard coverage and an enhanced coverage policy are issued.

New Index to Endorsements which contains an alphabetical listing with cross-references to both the Manual section and the NJRB form number.

As always, should you have any questions about this or any other matter, please call the state office for assistance.