Bulletin: LA2015001

Dear Associates:

The Louisiana Department of Insurance has approved a Form Filing and Rate Rule Filing made by LATISSO effective October 1, 2015, for the new LA107 LA Premium Disclosure Form and additional paragraph to the existing Simultaneous Issuance of Owner’s and Loan Policies rate rule PR4.

The format of disclosure of title insurance premium in instances of Simultaneous Issuance of Owner’s and Loan Policies that the CFPB will require beginning October 3, 2015, differs somewhat from the format of the current LATISSO Rate Rule PR4 for Simultaneous Issuance of Owner’s and Loan Policies. To sustain the integrity of the LATISSO Rate Rule PR4 calculation method, the LA107 LA Premium Disclosure Form was developed by LATISSO to demonstrate the two different formats of disclosure and show that the total of the premiums result in the same amount regardless of the format of the disclosure.  

The LA107 LA Premium Disclosure Form should be completed in connection with all instances of Simultaneous Issuance of Owner’s and Loan Policies. The LA107 LA Premium Disclosure Form does not have premium associated with it.

Along with the LA107 LA Premium Disclosure Form, the following has been added to the current LATISSO Rate Rule PR4 Simultaneous Issuance of Owner’s and Loan Policies to address the above.

For the sole purpose of complying with the rules and regulations of the Consumer Financial Protection Bureau (CFPB), it shall be permissible for the disclosure of the premiums for the Owner’s policy and the Loan policy, to be in accordance with those rules and regulations, as long as the LATISSO 107 – Simultaneous Premium Disclosure Form is completed and executed, reflecting the appropriate calculation of the Simultaneous Premium in accordance with the within Rate Rule PR-4.

To demonstrate how to complete the LA107, we attach an example that has been completed for the following circumstances. John James Doe and Jane Smith Doe are purchasing a home for $125,000 and executing a mortgage for $100,000. They have elected to purchase an ALTA Homeowner’s Policy. The lender is requiring an expanded coverage residential loan policy. The sellers will not be paying for any of the title insurance premium cost.

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

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

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