Bulletin: OH2013003

Dear Associates:

The Ohio Title Insurance Rating Bureau has approved the following new Forms and Rates for use in Ohio, effective September 1, 2013:

Revisions to the following Forms were made and are now approved for use:

ALTA Short Form Residential Limited Coverage Junior Loan Policy (Revised 04-02-13)

ALTA Endorsement 9.6-06 Private Rights - Loan Policy (Revised 04-02-13)

ALTA Endorsement 12-06 Aggregation - Loan (Revised 04-02-13)

ALTA Endorsement 32.1-06 Construction Loan - Loss of Priority - Direct Payment (Revised 04-02-13)

ALTA Endorsement 32.2-06 Construction Loan - Loss of Priority - Insured’s Direct Payment (Revised 04-02-13)

The following new forms have been approved for use:

ER-9.9 OTIRB OH-9.9 PRIVATE RIGHTS - OWNER’S POLICY (ALTA FORM 9.9-06, Adopted 04-02-13)

This endorsement, subject to its terms, conditions and exclusions, insures the Insured under an Owner’s Policy against loss or damage due to enforcement of a “Private Right” in a “Covenant” affecting Title at Date of Policy based on a transfer of Title on or before Date of Policy which causes a loss of the Insured’s Title. The rate for this endorsement is ten cents ($.10) per thousand dollars of the policy amount, or any fraction thereof. The minimum rate is $250. If this endorsement is issued in conjunction with a new policy which new policy qualifies for a  reissue rate or refinance rate under Rate Rule PR-4, PR-9 or PR-10, and this endorsement was also issued in conjunction with the prior policy, then the rate for this endorsement shall be seventy percent (70%) of the Original Rate for this endorsement.

ER-9.10 OTIRB OH-9.10 RESTRICTIONS, ENCROACHMENTS, MINERALS - CURRENT VIOLATIONS-LOAN POLICY (ALTA 9.10-06, Adopted 04-02-13)

This endorsement, subject to its terms and conditions, offers the Insured under a Loan Policy coverage against loss or damage sustained by the Insured by reason of a violation or other condition as stated therein that exists at the Date of Policy. Coverage includes, among certain other coverages stated therein, insurance against loss or damage sustained by the Insured by reason of a violation at Date of Policy of a covenant that divests, subordinates, or extinguishes the Lien of the Insured Mortgage; results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage; or causes a loss of the Insured’s Title acquired in satisfaction of the Indebtedness. The rate for this endorsement is nine cents ($.09) per thousand or any fraction thereof, of the policy amount with a minimum rate of $150.

ER-12.1 OTIRB OH-12.1 AGGREGATION - STATE LIMITS - LOAN (ALTA FORM 12.1-06, Adopted 04-02-13)

This endorsement is the same as ALTA Form 12 in that it amends Sections 7, 8, and 10 of the Conditions of the Loan policy to provide that the amount of insurance available to cover liability for loss or damage under the policy shall be the aggregate of the amount of insurance under the Ohio policy or policies and any other policy identified in the endorsement, subject to an overall maximum stated amount. This endorsement differs from ALTA Form 12 in that it allows for a statement of the maximum amount of insurance by Land located in identified states. The rate for this endorsement is fifteen cents ($.15) per thousand of the amount of insurance under the Ohio policy or policies. The minimum rate shall be $75.

ER-28.2 OTIRB OH-28.2 ENCROACHMENTS - BOUNDARIES AND EASEMENTS - DESCRIBED IMPROVEMENTS (ALTA FORM 28.2-06, Adopted 04-02-13)

This endorsement to an Owner’s Policy or a Loan Policy, subject to its terms and conditions, insures the Insured against loss or damage sustained by reason of an encroachment of any Improvement, specifically named or identified in the endorsement, located on the Land onto adjoining land or onto that portion of the Land subject to an easement; an encroachment of any Improvement, specifically named or identified in the endorsement, located on adjoining land onto the Land; enforced removal of any Improvement, specifically named or identified in the endorsement, located on the Land as a result of an encroachment of the Improvement into any portion of the Land subject to an easement; and enforced removal of any specifically identified Improvement located on the Land encroaching onto adjoining land. The rate for this endorsement is as follows: (A) If there are no known encroachments, the rate shall be $250. (B) If there are known encroachments and they are not excepted from coverage by Section 4 of the endorsement or otherwise, the rate shall be $500 for the first encroachment and $250 for each additional encroachment.

Finally, take note that rate rule ER-28.1 has been amended. The revised rule is as follows:

ER-28.1 OTIRB OH-28.1 ENCROACHMENTS - BOUNDARIES AND EASEMENTS - (ALTA FORM 28.1-06)

This endorsement to an Owner’s Policy or a Loan Policy, subject to its terms and conditions, insures the Insured against loss or damage sustained by reason of an encroachment of  any improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement; an encroachment of any improvement located on adjoining land onto the Land; enforced removal of any improvement located on the Land as a result of an encroachment of the improvement into any portion of the Land subject to an easement; and enforced removal of any improvement located on the Land encroaching onto adjoining land. The rate for this endorsement is as follows: (A) If there are no known encroachments, the rate shall be $250. (B) If there are known encroachments, and they are not otherwise excepted from coverage, the rate shall be $500 for the first encroachment and $250 for each additional encroachment.

The Ohio Rate Manual effective September 1, 2013, and for the new endorsements and forms approved for use in Ohio are attached.

Remember that when you are reporting and remitting, all endorsements must be properly coded with the proper transcodes. A link to the current transcodes is included.

Agents using AIM For Windows or AIM+ should contact PropertyInfo Customer Care to get the new rate(s) changes implemented in their AFW or AFW+ system.

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

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