Bulletin: MT2016001

Dear Associates:

Effective Date: December 1, 2015

A new Rate Manual has been filed with the Montana Department of Insurance. The new Manual went into effect on December 1, 2015. Numerous changes were made to the Rate Manual. Set forth below is a summary of the changes.

Section B-1 – $200 is now the minimum charge unless the manual specifically provides otherwise. The per thousand charge in the $5 million to $10 million tier and in the over $10 million were decreased.

Section B-4 b) – The charge for an extra chain of title is now $50.

Section 5 c. – Reissue Charges. Nothing of substance changed but the language was cleaned up to make it simpler and clearer.

Section 5. d. – Increase of Liability. In addition to the $25 fee for the increase there is also an applicable per thousand charged for the increased amount of coverage.

Section 5. i. – Multiple Owner’s Policies. A section was added to the Rate Manual to deal with those occasions where multiple owner’s policies are requested and which insure a single risk.

Section B-6 a. – Lender’s Policies. A summary section was added as section “a.” and the section dealing with construction loan policies was deleted. Charges relating to a construction loan are as provided for other loan policies. The difference is how the policy risks are underwritten.  

Section B-6 a. – Supplemental or Substitute Mortgage. The charge for a supplemental or substituted mortgage is now 40% (was 50%) with a minimum charge of $75.

Section B-6 d. 2) – ALTA Junior Lender’s Policy. The Junior Loan Policy may not be used when insuring a first priority deed of trust.

Section B-6 g. - Refinance Charge. A section was added for a refinance charge. The charge applies for policies insuring a replacement or refinance loan on property subject to an institutional mortgage dated and recorded within the previous three years. The refinance charge is fifty percent (50%) of the original issue charges up to the face amount of the mortgage being refinanced. The applicable per thousand charge will apply to coverage in excess of the previous mortgage amount.

Former Sections B-6  j. and k. dealing with the Stewart Master Residential Loan Policy and the Secondary Market Short Form Residential Loan Policy – One to Four Family were stricken from the Manual.

Section B-8. a. – Trustee’s Sale Guarantee. The minimum charge is now $200. Two updates can be provided for no additional charge if requested within one year from the issuance of the guarantee. Updates after that will be $50. Trustee’s Sale Guarantees can be converted to a policy for 20% of the basic charge for a standard policy and 45% of the basic charge for an extended policy.

Section B-8 e.- Reissue Rate on a Guarantee. A new section was added allowing for the issuance of a new policy within two years from the guarantee for a charge of 60% of basic.

Former Section B-9. – Article 9 Comprehensive Plus Policy of Title Insurance was deleted.

Section B-10. – Subdivider/Developer Charge. The new minimum charge for a subdivider/developer rate is $100. The purchaser does not qualify for the reduced charge.

Section B-11. List of Forms. A number of forms were deleted.

Section C. Endorsements. A significant number of ALTA Endorsements were added to the Rate Manual and pricing changed for a number of other endorsements. You should use ALTA approved endorsements whenever possible. The most current version of the ALTA endorsement(s) available in your state should be used. All endorsement percentages are based on the basic rate (rounded up to the nearest dollar) and shall not be based on the reissue or refinance rate being charged.

The following endorsements were added. ALTA 3.2, 9.6, 9.7, 9.8, 9.9, 9.10, 11.2, 12.1, 28.1, 28.2, 30.1, 32.2, 35, 35.1, 35.2, 36, 36.1, 36.2, 36.3, 36.4, 36.5, 36.6, 37, 38, 39, 41, 41.1, 41.2, 41.3, 42, 43, and 44.  

The STG Last Dollar Endorsement was deleted.

Pricing of some of the endorsements was changed and an effort was made to match pricing for comparable CLTA and STG Endorsement to the ALTA charge.

The ALTA 9.4 and 9.5 have been decertified by ALTA and are no longer available. Similar coverages can be found in the 9.6 – 9.10 Endorsements.

The ALTA 3.2 is a Zoning Endorsement for Land Under Development.

The ALTA 11.2 is a Loan Modification Endorsement where the amount of the loan is increasing.

The ALTA 28.1 provides coverage for losses relating to encroachments of improvements on the insured parcel onto adjoining land or onto an easement and the encroachment of an improvement on adjoining land onto the insured parcel. The 28.2 provides similar coverage but limits coverage to improvements specifically described in the endorsement.

The ALTA 32 Endorsement series are designed to be used with construction/development loan policies where priority has been lost. However, the endorsements can also be used when the deed of trust has priority.

The ALTA 35 Endorsement series provide coverage against loss sustained as a result of the use of the surface of the land for the extraction of minerals.  

The ALTA 36 Endorsement series are designed specifically for energy projects and include coverage for leasehold estates and easement interests utilized to create rights in the insured parcel for some of the energy project’s improvements.

The ALTA 37 Endorsement provides coverage where there is an Assignment of Rents and Leases.

The ALTA 41 Endorsement series provide coverage against loss resulting from the use of the surface of the land for the extraction or development of water.

Agents please contact PropertyInfo Customer Care or your title production software vendor to get the new rates/forms changes implemented in your system.

These changes have been made to the Rate Manual which can be found athttp://www.stewart.com/montana.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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