Bulletin: ID2015001

Dear Associates:

Effective Date: July 1, 2015

A new Rate Manual has been filed with the Idaho Department of Insurance. The new Manual goes into effect on July 1, 2015. Significant changes were made to the Rate Manual. Set forth below is a summary of the changes.  

Section B-1 – $210 is now the minimum charge unless the manual specifically provides otherwise. The per thousand charge in each tier was increased. An appendix is attached to the Rate Manual with all the calculations.

Section B-2. c) – The surcharge for an extended owner’s policy on residential property is now 10%.

Section B-6 c) – Loan Policies: Development and construction loan policy pricing has changed. The charge is now 100% of the basic schedule of charges for standard coverage or 130% of basic for extended coverage. After completion of construction the charges for the development or construction loan may be applied as a credit to the charges for the owners and loan policies. The credit is 100% of the basic charge for the development/construction loan. There is a surcharge of $40 that must be added to the final calculated amount. There is also a provision that deals with the limitation of the credit. The credit is only available if the new lenders/owners policy is issued within one year of the date of the development/construction loan policy or within 120 days after completion of construction. 

Section B-6 j) – The Simplified One-to-Four Family Residential Loan rates were slightly increased.

Section B-6 k) – This section was added to allow the issuance of a SMART Policy. The policy can only be issued on 1-4 family properties on equity loans up to and including the amount of $350,000. This is a standard coverage policy so the standard exceptions remain and four additional exceptions are added. The four additional exceptions are specifically set forth in this section of the Rate Manual.

Section B-11 – This section was added to the Rate Manual to deal with Closing Protection Letters. The manual provides for a charge of $25 per transaction where a CPL is issued. The entire CPL charge is to be remitted to the underwriter. The CPL is available to the lender, buyer and/or borrower.

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 are strongly encouraged to use ALTA Endorsements where possible.

The ALTA Endorsements added are: ALTA 3.2, 9.6, 9.7, 9.8, 9.9, 9.10, 11.2, 12.1, 28.1, 28.2, 29.2, 29.3, 30, 30.1, 31, 32.1, 32.2, 33, 34, 35, 35.1, 35.2, 35.3, 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 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.

No additional STG or CLTA Endorsements were added. Pricing was modified on some of the endorsements to make pricing consistent with charges for the ALTA Endorsements that offer similar coverages.

Any agent using AIM+ should contact PropertyInfo Customer Care to get the new rate changes in their AIM+ system.

These changes have been made to the Rate Manual which can be found here. 

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

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