Endorsements: Form 2089 Instructions

NOTES:

Coverage: The definition of Insured under paragraph 2 of the Conditions and Stipulations of the ALTA 1992 Owner Policy limits the Insured to the named parties on Schedule A and those who take title from them by operation of law, rather than by conveyance. Most estate planning vehicles take title through a conveyance, and so would not be covered by the owner’s policy of title insurance. For insureds who are in the process of conveying their property to an estate planning vehicle, this endorsement may be issued at the time of the conveyance to ensure that the coverage under an original ATG ALTA 1992 Owner Policy will continue for the benefit of the estate planning vehicle. This endorsement does not extend the Date of Policy, does not add insurance for defects, liens or encumbrances after the Date of Policy, and does not insure the validity of the conveyance or of the estate planning vehicle.

This endorsement may also be used on a 2006 ALTA Owner’s Policy where the conveyance for estate planning purposes is not one of those listed in paragraph (1)(d)(i) of the Conditions, or where the insured wants additional assurance that the grantee on the conveyance will be able to make a claim under the title insurance policy.

Procedure: This endorsement may be issued on Owner's Policies only. To issue this endorsement, take the following steps:

1.      Obtain a copy of the recorded deed to the estate planning vehicle and a copy of the ATG Owner’s Policy.

2.      Review the deed to be sure it conveys the same property as is covered by the Owner’s Policy, and to determine whether all the Insureds on the Owner’s Policy conveyed their interests to the estate planning vehicle. (If not, please contact the Underwriting Department for instruction).

3.      Complete the endorsement to show the names of the grantors who are assigning the Owner’s Policy, as shown on the Owner’s Policy, and the names of the assignees, as shown on the deed.

4.      Have the assignors sign the endorsement.

The assignees should attach the endorsement to the original title policy once it is complete. Remit copies of the endorsement and Owner’s Policy, together with ATG’s premium, to the Policy Records Department in Champaign.

Questions? Contact an Underwriter.