Bulletin: LA2024001

Dear Associates:

The Louisiana Department of Insurance has approved two sets of changes to the LATISSO Manual of Rates and Forms for Title Insurance in the State of Louisiana which are effective August 1, 2024, and October 1, 2024, respectively. All changes are outlined below for your reference.

The LATISSO Manual of Rates & Forms for Title Insurance effective 8/1/2024 can be found here.

The LATISSO Manual of Rates & Forms for Title Insurance effective 10/1/2024 can be found here.

Changes effective August 1, 2024 -

Section 4 – SCHEDULE OF RATES AND RULES FOR ENDORSEMENTS

ER-108 – Date Down Endorsement (Loan Policy) – The methodology for rate calculation on the LA 108 has been changed to be based on “the total amount of the coverage of the Loan Policy.” The rate of fifty cents ($0.50) per thousand is unchanged.

Changes effective October 1, 2024 –

Section 2 – PROVISIONS FOR POLICY RATES AND RULES

PR-4 – Simultaneous Issue of Owner’s and Loan Policies – The rate language has been revised and additional language added to clarify the methodology of calculation of premium in the instance of an increase in the amount of coverage of an existing Owner’s Policy with the simultaneous issuance of a new Loan Policy. The currently established rate is unchanged.

PR-4.2 – Substitution Credit for Loan Policies – The term “Title Insurance Rate” has been replaced with the term “Original Rate” in accordance with the Manual’s defined terms. The currently established rate is unchanged.

PR-4.3 – Reissue Credit for Owner’s Policies - The term “Title Insurance Rate” has been replaced with the term “Original Rate” in accordance with the Manual’s defined terms. The currently established rate is unchanged.

PR-4.4 – Reissue Credit for Loan Policies - The term “Title Insurance Rate” has been replaced with the term “Original Rate” in accordance with the Manual’s defined terms. The currently established rate is unchanged.

Section 4 – SCHEDULE OF RATES AND RULES FOR ENDORSEMENTS

ER-11.2 – Mortgage Modification with Additional Amount of Insurance – A minimum premium of $125 has been added to this rate. This change serves to align the premiums of the ALTA 11 and the ALTA 11.2.

ER-28 – Easement – Damage or Forced Removal – Additional language has been added clarifying the current established rate is per “easement or” encroachment to be covered. The currently established rate is unchanged.

ER-28.1 – Encroachments – Boundaries and Easements – This rate has been revised from a “per encroachment endorsed” method of calculation to a percentage of Original Rate method of calculation and establishes a minimum premium. This change better aligns the rate with the risk and the form of the endorsement, which does not designate specific exceptions to which the endorsement applies. The new rate is 10% of the Original Rate, with a minimum premium of $150.

ER-28.2 – Encroachments – Boundaries and Easements – Described Improvements - This rate has been revised from a “per encroachment endorsed” method of calculation to a percentage of Original Rate method of calculation and establishes a minimum premium. This change better aligns the rate with the risk and the form of the endorsement, which does not designate specific exceptions to which the endorsement applies. The new rate is 15% of the Original Rate with a minimum premium of $150.

ER-28.3 – Encroachments – Boundaries and Easements – Described Improvements and Land Under Development - This rate has been revised from a “per encroachment endorsed” method of calculation to a percentage of Original Rate method of calculation and establishes a minimum premium. This change better aligns the rate with the risk and the form of the endorsement, which does not designate specific exceptions to which the endorsement applies. The new rate is 20% of the Original Rate, or any fraction thereof, of the policy with a minimum premium of $150.

ER-46 – Option – The term “Original Premium” has been replaced with the term “Original Rate” in accordance with the Manual’s defined terms. The currently established rate is unchanged.

ER-102 – Increased Coverage Endorsement – Additional language has been added clarifying the methodology of calculation of premium in instances of simultaneous increases in an existing Owner’s Policy and existing Loan Policy. The currently established rate is unchanged.

ER-109 – Limited Construction Advance Endorsement – A new endorsement and associated rate have been added to address lender requests for “title search,” “draw,” or “date down” endorsements that do not bring coverage forward. This endorsement is available to be issued on long form Loan Policies. The language of the new endorsement provides post-policy search information, options to add items to Schedule B, Part I and Schedule B, Part 2, and recognition of current disbursement and aggregate disbursed amounts. The endorsement does not bring forward the date of the Policy or any endorsements thereto. The rate for this endorsement is $100 per issuance.

Section 11 – SPECIMEN FORMS - LATISSO ENDORSEMENTS

LATISSO 109 –

The form for the LATISSO 109 can be found here.

These rates have been provided to third-party title production system (TPS) vendors. Please contact your TPS vendor or account services representative to have the new/revised rates implemented in your system.

The endorsements will also be available in Word format on our www.stewart.com/louisiana site under the Underwriting Resources Menu, endorsements option no later than October 1, 2024.

The current Rate and Form Manual in is available at www.stewart.com/louisiana under the Rates menu option.

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.