New Title Policy Forms Coming to New York

All New York title insurance policy and endorsements forms as well as the premium rates must be filed with and be approved by the New York Department of Insurance. Title underwriters almost always file with the Department through the Title Insurance Rate Service Association ('TIRSA'), a state sanctioned rating bureau comprised of the great majority of title underwriters licensed to do business in New York. In developing new forms, TIRSA, in turn, receives guidance from the American Land Title Association ('ALTA'), an organization whose membership includes title companies from across the nation. The title insurance policy forms currently in use in New York are based upon those promulgated by ALTA in 1992. However, because the ALTA forms are national, TIRSA often suggests modifications to the forms to account for New York's laws and local practices. Upon approval by the Insurance Department, these modifications are implemented through the provisions of the TIRSA Rate Manual, which sets forth premium rates, coverage limitations or expansions from the national policy, as well as the rules and guidelines governing title underwrites. The coverage expansions or limitations are then carried over to the New York Endorsement to the title policy which is attached to every policy and specifically modifies the terms of the policy to account for rules and regulations set forth in the Rate Manual. There are two basic title policy forms: 1) the owner's or fee policy, which insures the owners of the insured premises; and 2) the mortgage or loan policy, which insures the lender whose loan is secured by a mortgage on the owner's property. Each policy has its own New York Endorsement.