Endorsements: Form 2106-06 Instructions

NOTES:

Coverage:  The Aggregation Endorsement, ALTA Form 12-06, is often issued together with the First Loss Endorsement, ATG Form 2121-06, ALTA Form 20-06. This endorsement is also commonly called the Tie-In Endorsement.

The Aggregation Endorsement ties multiple policies together under one Amount of Insurance, for one premium, regardless of the state where issued. It clarifies the Amount of Insurance that applies to all the policies and the fact that a payment of a claim on one policy reduces the Amount of Insurance for all policies.

It is useful to issue multiple policies for multiple parcels of land where there are enough exceptions to be confusing to include all the parcels and their exceptions on a single policy. In particular, it is useful to issue one policy per mortgage with the Aggregation Endorsement where more than one mortgage is recorded, because the parcels are located in different counties or states, but all the mortgages contain the same amount of mortgage and secure the same single note.

Procedure: This endorsement may be issued on loan policies only. To issue this endorsement, verify that all the policies in question are ATG policies. Complete the chart with the policy numbers, counties, states and amounts of each policy to be tied together. Then, in the paragraph below the chart, fill in the blank with the Amount of Insurance to apply to the policies as a whole. Be sure that the insured has paid for the Amount of Insurance appearing in that blank.

Questions? Contact an Underwriter.