Page 5 - Guide to Title Insurance Policy Endorsement

INTRODUCTION

An endorsement can be defined as a rider that modifies a title insurance policy. Most often an
endorsement will have the effect of expanding the scope of policy coverage. However, a
policy may also be endorsed to limit coverage. Although all title policies can be endorsed, not
all endorsements are intended to be issued with all policies. Some endorsements apply to
owners policies while others are appropriate to loan policies with yet others being equally
applicable to both, but not necessarily with standard and extended coverage policies.

Old Republic National Title Insurance Company, issues policies and endorsements
promulgated by the American Land Title Association (ALTA) and the California Land Title
Association (CLTA) as well as its own “ORT” forms.

ALTA is the nationwide association of the title insurance industry. Its members include title
insurers, title agents, attorneys and other affiliated professionals. ALTA serves as an advocate
on behalf of its members and the industry’s interest, provides education and information to its
members and the industry’s interest, provided education and information to its members and
creates and promotes professional industry standards. ALTA also promulgates uniform title
insurance policies and endorsements for use by its members on a national basis.

CLTA is the California association of thee title insurance industry. Its members also include
title insurers, title companies, attorney’s and affiliated professionals. CLTA offers services to
its members, provides a unified voice on legislative and regulatory issues and adopts, develops
and publishes standardized title insurance forms.

The primary types of title insurance policies issued by the Company are the CLTA Standard
Coverage Policy, CLTA/ALTA Homeowner’s Policy of Title Insurance, ALTA Owner’s
Policy (2006) and ALTA Loan Policy (2006).

The CLTA Standard Coverage Policy, as its name would imply, is a standard coverage policy.
The ALTA Owner’s and ALTA Loan Policies may be issued in either standard coverage or
extended form. The CLTA/ALTA Homeowner’s Policy of Title Insurance is distinct from
both the CLTA and ALTA forms as it may insure only a one to four unit residential structure
where the insured is a natural person. It is often referred to as an expanded coverage policy.

The difference between “standard coverage” and “extended coverage” can be thought of, in
simplistic terms, as the difference between “record coverage”, being insurance against those
matters covered by the policy disclosed by an examination of the public records and “off
record coverage” being those covered matters disclosed by an inquiry, inspection and survey.

As noted above the ALTA Owner’s Policy and ALTA Loan Policy may be issued in either
standard or extended coverage form. Structurally the distinction between standard and
extended coverage is not the policy from, but the inclusion of the six “standard exceptions”,
sometimes called “western regional exceptions” or “pre-printed exceptions”, in the policy.
Thus, it is the exceptions to coverage in an ALTA Owner’s or Loan Policy that dictate whether
the policy is written in standard or extended coverage form.

Revised December 29, 2016 4