New Mexico Register / Volume XXIX, Issue 10 / May 29, 2018

 

 

This is an amendment to 13.14.10 NMAC, Sections 9, 10, 11, 14, 24, 31, 32, 39, 47, 48, 61 and 64, effective July 1, 2018

 

13.14.10.9             MECHANICS’ LIEN COVERAGE IN OWNER’S POLICY (PERIOD NOT EXPIRED):  Owner’s policies may be issued with no exception to possible unfiled mechanics’ or materialmen’s liens upon compliance with 13.14.6.15 NMAC and payment of the following additional premium:

                A.            When all improvements have been fully completed and the statutory period for filing mechanics’ or materialmen’s liens has expired, this endorsement shall be issued for a premium of [twenty-five dollars ($25)] fifty dollars ($50.00) and,

                B.            When new construction is involved, construction of the improvements has been fully completed and accepted by the insured owner and the period for filing mechanics’ or materialmen’s liens has not expired, this endorsement shall be issued for an extra hazard premium of three dollars ($3.00) per thousand calculated on the face amount of the owner’s policy.

[6/16/1986...4/1/1994; 6/1/1998; 13.14.10.9 NMAC - Rn, 13 NMAC 14.10.9, 5/15/2000; A, 5/31/2000; A, 7/31/2014; A, 8/15/2014; A, 7/1/2018]

 

13.14.10.10          SURVEY COVERAGE [IN AN OWNER’S POLICY]:

A.            An owner’s policy may be endorsed pursuant to 13.14.6.14 NMAC to provide survey coverage upon the payment of an additional premium equal to fifteen percent of the full basic premium rate for the said policy according to the schedule in effect as of the date of the endorsement.

B.            A loan policy may be endorsed pursuant to 13.14.7.13 NMAC to provide survey coverage upon the payment of a premium of fifty dollars ($50.00).

[6/16/1986; 13.14.10.10 NMAC - Rn, 13 NMAC 14.10.10, 5/15/2000; A, 7/1/2018]

 

13.14.10.11          ADDITIONAL ADVANCES UNDER OPEN END MORTGAGES:  A loan policy may be endorsed to insure the validity and priority of the lien of the additional advance upon payment of an endorsement premium of twenty-five dollars ($25) plus an additional premium calculated by determining the sum of: 1) the difference between the charge for a loan policy in the amount of the unpaid principal balance due to the lender before the advance is made and the charge for a loan policy in the amount of the principal balance due after the advance has been made utilizing the appropriate brackets in the schedule of basic premium rates in effect as of the date of the endorsement; and 2) for all endorsements for which the premium is calculated as a percentage of the policy premium or otherwise based on the policy amount, the difference between the charge for endorsements issued with the original loan policy in the amount of the unpaid principal balance due to the lender before the advance is made and the charge for such endorsements calculated on the principal balance due to the lender after the advance has been made, utilizing the appropriate rates identified in 13.14.10 NMAC in effect as of the date of the endorsements.  The minimum combined charge for this endorsement is [fifty dollars ($50)] one hundred dollars ($100.00).

[6/16/1986, 2/16/1987, 6/1/1998; 13.14.10.11 NMAC - Rn, 13 NMAC 14.10.11, 5/15/2000; A, 5/31/2000; A, 7/31/2014; A, 8/15/2014; A, 7/1/2018]

 

13.14.10.14          CONDOMINIUM ENDORSEMENT ALL ASSESSMENTS:  A condominium endorsement [unpaid] all assessments, NM form [30] 12, may be issued at the same time as and attached to an owner’s or a loan policy for a premium of twenty-five dollars ($25).  Paragraph (3) of [unpaid assessments] NM form [30] 12 may be deleted at the option of the insurer.  Each insurer shall establish its written underwriting requirements for such deletion and shall furnish its agent(s) written instructions relating thereto.

[6/16/1986, 2/16/1987, 6/1/1998; 13.14.10.14 NMAC - Rn, 13 NMAC 14.10.14, 5/15/2000; A, 5/31/2000; A, 8/17/2009; A, 7/31/2014; A, 8/15/2014; A, 3/1/2016; A, 7/1/2018]

 

13.14.10.24          CONDOMINIUM ENDORSEMENT [TO OWNER’S POLICY] UNPAID ASSESMENTS: [Upon request, the insuring company or its agent may issue] A condominium endorsement unpaid assessments [to owner's policy], NM form 30, may be issued at the same time as and attached to an owner’s or loan policy for a premium of twenty-five dollars ($25).  Paragraph (3) of NM form 30 may be deleted at the option of the insurer.  Each insurer shall establish its written underwriting requirements for such deletion and shall furnish its agent(s) written instructions relating thereto.

[3/1/1989, 6/1/1998; 13.14.10.24 NMAC - Rn, 13 NMAC 14.10.24, 5/15/2000; A, 5/31/2000; A, 7/31/2014; A, 8/15/2014; A, 3/1/2016; A, 07/1/2018]

 

13.14.10.31          [TRUTH IN LENDING ENDORSEMENT:  A truth in lending endorsement to a loan policy may be issued upon payment of a premium of nine percent of the full basic premium rate in effect as of the date of the loan policy.] [RESERVED]

[6/1/1997; 13.14.10.31 NMAC - Rn, 13 NMAC 14.10.31, 5/15/2000; Repealed, 7/1/2018]

 

13.14.10.32          DOWN DATE ENDORSEMENT TO RESIDENTIAL LIMITED COVERAGE JUNIOR LOAN POLICY JR 1:

A.            The down date endorsement to residential limited coverage junior loan policy JR1, NM form 46, may be issued one or more times after issuance of an ALTA residential limited coverage junior loan policy (NM form 45).  The premium for the issuance of each NM form 46 endorsement is twenty-five dollars ($25).  NM form 46 may not be issued more than one year after the date of policy stated in the ALTA residential limited coverage junior loan policy (NM form 45).

                B.            Paragraph B of NM form 46 shall describe the insured mortgage setting forth the date of recording of the insured’s mortgage.  This endorsement may also be issued solely for update purposes, prior to recordation of the insured mortgage by inserting the word “None” at the end of Paragraph B and by deleting the phrase “date of endorsement is the date shown above or the date of recording of the insured’s mortgage, whichever is later” (if it appears on the NM form 46 endorsement after “date of endorsement”).

                C.            Upon request of the named insured and the proper recording of all necessary documents meeting insurer’s underwriting standards, the amount of the loan secured by the insured’s mortgage insurance previously stated in the ALTA residential limited coverage junior loan policy (NM form 45) may be increased by adding a Paragraph D.  It shall read as follows:  “D. The amount of insurance of the policy is hereby amended to be $____,” subject to the payment of the applicable premium for the additional insurance.  The additional premium (in addition to the premium for the NM form 46) shall be the difference between the premium from the amount of insurance stated in the ALTA residential limited coverage junior loan policy (NM form 45) and the amount of insurance stated in Paragraph D of NM form 46, calculated pursuant to 13.14.9.29 NMAC.

[6/1/1998; 13.14.10.32 NMAC - Rn, 13 NMAC 14.10.32, 5/15/2000; A, 5/31/2000; A, 7/31/2014; A, 8/15/2014; A, 3/1/2016; A, 7/1/2018]

 

13.14.10.39          CONTIGUITY OF PARCELS ENDORSEMENTS:  When a contiguity [of] single parcel endorsement, NM form 54, or a contiguity [of] multiple parcels endorsement, NM form 66, is issued pursuant to 13.14.8.20, the premium for each endorsement shall be one hundred dollars ($100) in addition to the premium charged for the policy.

[13.14.10.39 NMAC - N, 5/15/2000; A, 7/1/2006; A, 7/1/2018]

 

13.14.10.47          ZONING, UNIMPROVED LAND ENDORSEMENT:  When a NM form 64, zoning - unimproved land endorsement [(NM form 64)] or a NM form 64.1, zoning - unimproved land - no applicable zoning ordinances endorsement [(NM form 64.1)] is issued pursuant to 13.14.8.26 NMAC, the premium shall be fifteen percent of the full basic premium rate.  Agents shall receive commissions pursuant to 13.14.3.11 NMAC for liabilities up to $27,000,000; agents’ retention shall be zero for liabilities greater than $27,000,000.  In no case shall the premium charge for the issuance of NM form 64 or NM form 64.1 be less than $250.  When issuing multiple zoning endorsements simultaneously on an owner’s policy and a loan policy or loan policies in a single transaction, only one premium shall be charged calculated on the policy with the highest amount of insurance.

[13.14.10.47 NMAC - N, 7/1/2005, A, 3/1/2016; A, 7/1/2018]

 

13.14.10.48          ZONING-COMPLETED STRUCTURE ENDORSEMENT, ZONING - LAND UNDER DEVELOPMENT ENDORSEMENT, AND ZONING COMPLETED STRUCTURE - NO APPLICABLE ZONING ORDINANCES ENDORSEMENT:  When a NM form 65, zoning - completed structure endorsement [(NM form 65)], a NM form 65.1, zoning - land under development endorsement [(NM form 65.1)] or a NM form 65.2, zoning - completed structure - no applicable zoning ordinances endorsement [(NM form 65.2)] is issued pursuant to 13.14.8.27 NMAC, the premium shall be twenty-three percent of the full basic premium rate.  Agents shall receive commissions pursuant to 13.14.3.11 NMAC for liabilities up to $27,000,000; agents’ retention shall be zero for liabilities greater than $27,000,000.  In no case shall the premium charge for the issuance of NM form 65, NM form 65.1 or NM form 65.2, be less than $250.  When issuing multiple zoning endorsements simultaneously on an owner’s policy and a loan policy in a single transaction, only one premium shall be charged calculated on the policy with the highest amount of insurance.

[13.14.10.48 NMAC - N, 7/1/2005; A, 7/31/2014; A, 3/1/2016; A, 7/1/2018]

 

13.14.10.61          MORTGAGE MODIFICATION ENDORSEMENTS:

                A.            When a mortgage modification endorsement (NM form 80) or a modification with subordination endorsement (NM form 80.1) is issued, the premium shall be [sixty-five dollars ($65)] one hundred twenty-five dollars ($125.00) for each endorsement issued.

                B.            When a mortgage with additional amount of insurance endorsement (NM form 80.2) is issued, the premium shall be [sixty-five dollars ($65.00)] one hundred twenty-five dollars ($125.00) plus an additional premium calculated by determining the sum of: 1) the difference between the charge for a loan policy in the amount of the current amount of insurance before the amount of insurance is increased, and the charge for a loan policy in the amount of the increased insurance utilizing the appropriate brackets in the schedule of basic premium rates in effect as of the date of the endorsement; and 2) for all endorsements for which the premium is calculated as a percentage of the policy premium, or otherwise based on the policy amount, the difference between the charge for the endorsements issued for a loan policy in the amount of the current amount of insurance before the amount of insurance is increased and the charge for such endorsements calculated on the amount of the loan policy in the amount of increased insurance, utilizing the appropriate brackets in the schedule of basic premium rates in effect as of the date of the endorsement.  The minimum combined charge for the NM form 80.2 endorsement is [ninety dollars ($90.00)] one hundred seventy-five dollars ($175.00) for each endorsement issued.

[13.14.10.61 NMAC - N, 3/1/2016; A, 7/1/2018]

 

13.14.10.64          PARTIAL COVERAGE ENDORSEMENT:  When a partial coverage endorsement, NM form 26, is issued pursuant to 13.14.8.41 NMAC, the premium for each endorsement shall be twenty-five dollars ($25.00)

[13.14.10.64 NMAC – N, 7/1/2018]