For the remainder of 2009, ALTA is making its copyrighted 2006 Policy and Endorsement Forms available to all title insurance agents and underwriters without charge.
Beginning in 2010, non-member agents or underwriters will be charged an annual licensing fee of $195 to use the forms.
While Florida has yet to approve the 2006 forms, progress has been made on the use of the 2006 ALTA policies and endorsements (modified for Florida). It is expected that the Office of Insurance Regulation (OIR) will approve these forms by the end of the year.
According to a statement from ALTA President Mike Pryor, “ALTA’s uniform policy forms have become the ‘gold standard’ throughout the lending and legal communities. Because land title insurance coverage is standardized, the secondary market readily accepts mortgages that carry title insurance. This has greatly contributed to the growth of demand for title insurance across the country.”
To that end, ALTA is granting a free ALTA membership to all non-members for the remainder of 2009. In 2010, companies must choose either to continue their ALTA membership or buy an annual license from ALTA to use the policy forms.
ALTA created the standardized forms “and filled a unique role in bringing the industry together to eliminate the confusion and chaos of disparate coverage. In turn, this has built a bridge to broader market availability for title insurance,” added Pryor. He believes that licensing of the policy forms will not only protect the value of the forms, but will also re-establish a level playing field for all industry participants.
The FLTA believes that OIR will withdraw the ALTA 1970 and 1972 policy forms, which would leave the 2006 forms, with Florida modifications, as the only forms available for use in this state. Until then, all the forms approved for use in Florida are still available by ALTA members and others, without any licensing fee and until further notice.
When the ALTA 2006 Policy Forms are approved and available for use in Florida, FLTA will provide another announcement on this blog. We’ll also post an update regarding the 1970 forms and, when appropriate, the 1992 forms.
For more information, please check out www.alta.org.
Florida Title Agent 