Bulletin: LA2013005

Dear Associates:

The Louisiana Department of Insurance has approved a Form and Rate Rule filing made by LATISSO effective September 1, 2013, for the endorsements referenced below.

ALTA 36-06 (Energy Project - Leasehold/Easement - Owner's) 04-02-12 (effective 09/01/13)

This is a new endorsement form and rate rule. 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, changes certain definitions, terms and conditions of an Owner’s Policy to reflect that the interest insured is a leasehold interest; adds some energy project-specific definitions; includes coverage for insured easement interests (as well as for insured leasehold estates) that are often utilized in lieu of or along with leases to create the rights in the land for some or all of the project improvements (as well as other more traditional easement purposes); 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 Leasehold Estate and Full Value of the Severable Improvements, Full Value of the Electricity Facility and the Full Value of the Easements.

Rate:  $500                             

ALTA 36.1-06 (Energy Project - Leasehold/Easement - Loan) 04-02-12 (effective 09/01/13)

This is a new endorsement form and rate rule. 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, changes certain definitions, terms and conditions of a Loan Policy to reflect that the interest insured is a leasehold interest; adds some energy project-specific definitions; includes coverage for insured easement interests (as well as for insured leasehold estates) that are often utilized in lieu of or along with leases to create the rights in the land for some or all of the project improvements (as well as other more traditional easement purposes); 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 Leasehold Estate and Full Value of the Severable Improvements, Full Value of the Electricity Facility and the Full Value of the Easements.

Rate:  $500

ALTA 36.2-06 (Energy Project - Leasehold - Owner's) 04-02-12 (effective 09/01/13)

This is a new endorsement form and rate rule. 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, changes certain definitions, terms and conditions of an Owner’s Policy to reflect that the interest insured is a leasehold interest; adds some energy project-specific definitions; includes coverage for insured leasehold estates; 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 the Full Value of the Leasehold Estate and the Full Value of the Severable Improvements, and the Full Value of the Electricity Facility.

Rate:  $500

ALTA 36.3-06 (Energy Project - Leasehold - Loan) 04-02-12 (effective 09/01/13)

This is a new endorsement form and rate rule. 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, changes certain definitions, terms and conditions of a Loan Policy to reflect that the interest insured is a leasehold interest; 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 the Full Value of the Leasehold Estate and the Full Value of the Severable Improvements, and the Full Value of the Electricity Facility.

Rate:  $500

ALTA 36.4-06 (Energy Project – Covenants, Conditions and Restrictions - Land Under Development - Owner's) 04-02-12 (effective 09/01/13)

This is a new endorsement form and rate rule. 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. This endorsement, subject to its terms and conditions, patterned after the ALTA 9.8-06 but tailored appropriately to the energy project context, insures the insured against loss or damage by reason of a violation of an enforceable covenant due to an “Electricity Facility” or “Severable Improvement” or the enforced removal of any Electricity Facility” or “Severable Improvement” (the definitions of which terms include those existing at the Date of Policy and those affixed later in the locations identified on the set of defined Plans, as more particularly expressed in the endorsement) or a notice of a violation of an enforceable covenant relating to environmental protection describing any part of the Land.

This endorsement may only be issued when the Amount of Insurance in Schedule A of the Policy includes the aggregate of the Full Value of the Land and the Full Value of the Electricity Facility and the Full Value of Severable Improvements and the Full Value of any insured easements.

Rate:  15% of the Original Rate for the Policy. The minimum premium is $500.

ALTA 36.5-06 (Energy Project - Covenants, Conditions and Restrictions - Land Under Development - Loan) 04-02-12 (effective 09/01/13)

This is a new endorsement form and rate rule. 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. This endorsement, subject to its terms and conditions, is patterned after the ALTA 9.7-06 but tailored appropriately to the energy project context, insures the insured against loss or damage by reason of a violation of an enforceable covenant due to an “Electricity Facility” or “Severable Improvement” or the enforced removal of any Electricity Facility” or “Severable Improvement” (the definitions of which terms include those existing at the Date of Policy and those affixed later in the locations identified on the set of defined Plans, as more particularly expressed in the endorsement) or a notice of a violation of an enforceable covenant relating to environmental protection describing any part of the Land.

This endorsement may only be issued when the Amount of Insurance in Schedule A of the Policy includes the aggregate of the Full Value of the Land and the Full Value of the Electricity Facility and the Full Value of Severable Improvements and the Full Value of any insured easements.

Rate:  15% of the Original Rate for the Policy and is in addition to the premium for the Policy. The minimum premium is $500.

ALTA 36.6-06 (Energy Project - Encroachments) 04-02-12 (effective 09/01/13)

This is a new endorsement form and rate rule. This endorsement may only be issued with an Owner’s Policy or a Loan Policy issued in connection with an “energy project”, including those designed to harvest wind and solar energy. This endorsement, subject to its terms and conditions, insures the insured against loss or damage by reason of an encroachment of any “Electricity Facility” or “Severable Improvement” (the definitions of which terms include those existing at the Date of Policy and those affixed later in locations identified on an identified set of Plans) located on the Land onto adjoining land or onto that portion of the Land subject to an easement; an encroachment of an improvement located on adjoining land onto the Land; and enforced removal of any “Electricity Facility” or “Severable Improvement” as a result of an encroachment by the “Electricity Facility” or “Severable Improvement”.

This endorsement may only be issued when the Amount of Insurance in Schedule A of the Policy includes the aggregate of the Full Value of the Land and the Full Value of the Electricity Facility and the Full Value of Severable Improvements and the Full Value of any insured easements.

The Rate for this endorsement when issued with a Loan policy is ten percent (10%) of the Original Rate for the Policy, and is in addition to the premium for the Policy. The minimum premium is $500. The Rate for this endorsement when issued with an Owner’s policy is fifteen percent (15%) of the Original Rate for the Policy, and is in addition to the premium for the Policy. The minimum premium is $500.

Rate:      When issued with an Owner Policy is 15% of the Original Rate for the Policy and
               is addition to the premium for the Policy. The minimum premium is $500.

When issued with a Loan Policy is 10% of the Original Rate for the Policy and is addition to the premium for the Policy. The minimum premium is $500.

Questions relating to this bulletin may be directed to Louisiana Underwriting Personnel at (800) 209-4675 or Stewart Legal Services.

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