Bulletin: LA2020003

Dear Associates:

The Louisiana Department of Insurance has approved changes to the LATISSO Manual of Rates and Forms for Title Insurance in the State of Louisiana which are effective October 1, 2020. The updated Rate and Form Manual will be posted to www.stewart.com/louisiana in the Forms and Policy Section. The changes are as follows:

Section 2 - Provisions for Policy Rates and Rules

Rate Rule PR-4.6 Mechanic’s and Materialmen’s Lien Protection

There are additional paragraphs added to the existing PR-4.6 Rate Rule of the LATISSO Rate and Form Manual. The added paragraphs are B 2 and B 3. Language has been removed from the existing Paragraph B 1 (a) and (b) which appeared immediately above the cost per thousand chart in each.

Rate Rule PR-4.6 Mechanic’s and Materialmen’s Lien Protection effective October 1, 2020, is shown below in its entirety.

Insurance against unfilled mechanic’s and materialmen’s liens may be afforded in both Owner’s and Loan Policies:

A. For no charge under either of the following conditions:

1. If it is established to the satisfaction of the insurer that there have been no improvements or betterments made within the statutory lien period preceding the issuance of the policy.
2. If improvements and betterments not exceeding $100 have been made within the statutory lien period and such requirements and conditions as the title underwriter may impose for its protection have been met to its satisfaction.

B. For a charge under the following conditions:

1. If improvements and betterments exceeding $100 have been made within such statutory lien period and such requirements and conditions as the insurer may impose for its protection have been met to its satisfaction, and

a) If the protection is to be given in an Owner’s Policy and only as to work performed by or on behalf of the Seller in the transaction, when approved by the insurer, then the following premium, in addition to the premium due for title insurance coverage, shall be charged:

FOR ORIGINAL (REGULAR OWNER POLICY COVERAGE)

* Minimum Premium shall be $100

* Minimum Premium shall be $100

b) If the protection is to be given in a Loan Policy, then the following premium in addition to the premium due for title insurance coverage, shall be charged:

FOR ORIGINAL (REGULAR MORTGAGEE POLICY COVERAGE)

* Minimum Premium shall be $100

2. If a loan policy insuring a mortgage which takes priority over liens other than laborers’ liens is to be issued in advance of work, AND such requirements and conditions as the insurer may impose for its protection are met to its satisfaction, AND the charges provided for under Paragraph B of Section 1 (b) above have been calculated based upon 50 % of the liability amount of the policy and this premium has been paid.

3. If owner’s and loan policies are to be issued simultaneously and both are to protect against mechanic’s liens, the only rate to be charged is owner’s lien rates based on Table A, B(1)(a) above.

Section 3 - Closing Protection Coverage

ALTA Closing Protection Coverage LA - Multiple Transactions 12-01-15 rev 12-01-18 Technical Corrections 08-01-19

and

ALTA Closing Protection Coverage LA - Single Transaction 12-01-15 rev 12-01-18 Technical Corrections 08-01-19

This is a revision to the versions referenced above to address technical corrections deemed appropriate by ALTA. The Closing Protection Coverage documents will be updated in our production system effective October 1, 2020.

Rate has not changed. It remains on a per transaction basis $25.

Section 4 –Schedule of Rates and Rules for Endorsements

ALTA 3.2 (Zoning-Land Under Development) 04-02-12 Technical Correction 12-01-15

This is a revision to the ALTA 3.2 endorsement version of 04-02-12 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9177. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains 20% of the Original Rate with a minimum premium of $250.

          LATISSO Rate Rule ER-3.2

ALTA 20 (First Loss-Multiple Parcel Transactions) 06-17-06 Technical Correction 10-13-11

This is a revision to the ALTA 20 endorsement version of 06-17-06 to address technical corrections deemed appropriate by ALTA. The form number has not changed and remains E-9367. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains 15% of the Original Rate with a minimum premium of $250.

          LATISSO Rate Rule ER-20

LA 100 (Collateral Mortgage) 04-01-09 Technical Correction 10-01-20

This is a revision to the LA 100 endorsement version of 04-01-09 to address technical corrections deemed appropriate. The form number has not changed and remains E-3123. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains $100. 

          LATISSO Rate Rule ER-100

LA 101 (Multiple Indebtedness Mortgage) 04-01-09 Rev 04-01-20 Technical Correction 10-01-20

This is a revision to the LA 101 endorsement version of 04-01-20 to address technical corrections deemed appropriate. The form number has not changed and remains E-3124. It is posted to www.stewart.com/louisiana in the Forms and Policy Section in word format. Please contact your individual software support group for assistance with set up within your system.

Rate has not changed. It remains $100.

          LATISSO Rate Rule ER-101

LA 102 (Increased Coverage) 04-01-10

There are additional paragraphs added to the existing ER 102 Rate Rule of the LATISSO Rate and Form Manual to clarify the calculation of the premium. The added paragraphs are A, B and C.

Rate Rule ER-102 effective October 1, 2020, is shown below in its entirety.

This endorsement offers the insured under an existing Owner or Loan Policy the ability to increase the amount of insurance with the same Company.
When an insured under an Owner’s Policy shall have satisfied the Company as to the Full Value of the Land, and shall have paid the premium described below, the Company, or its agent, may issue an Increased Coverage Endorsement.

When an insured under a Loan Policy requests an increase, which shall not exceed the maximum amount of the mortgage insured by such Loan Policy, and shall have paid the premium described below, the Company, or its agent, may issue an Increased Coverage Endorsement.

The rate for this Endorsement shall be the sum of A, B and C below:

A. Premium shall be the Original Rate computed on the new liability amount less the premium computed of the existing policy liability amount and any Increased Coverage Endorsement previously attached thereto; plus

B. Premium for any endorsements issued to the existing policy that are computed based upon the policy premium or policy liability. The Premium for each shall be computed on the new liability amount, then the premium paid for each based on the existing liability amount and any Increased Coverage Endorsements shall be subtracted, plus

C. Premium for Mechanic and Materialmen Lien Protection, if charged on the existing policy, shall be computed on the new liability amount, then the premium paid for existing liability amount and any Increased Coverage Endorsements shall be subtracted.If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.