Auditor's Corner (Dec 2023)

Policy Revisions and Reissues

There are several reasons why an agent will be asked to revise or reissue a recently produced lender or owners insurance policy.  A revision can be done by endorsement or perhaps a new policy needs to be issued.  Many common corrections after policy production can be avoided by first carefully reviewing the type of policy being produced, and the information that will be cited within the policy schedules.

A few examples of errors and their remedies are as follows:

• The agent incorrectly issued an Enhanced policy. The issued policy needs to be cancelled and a new standard policy needs to be produced with refunds made accordingly to the consumer as applicable.  Enhanced policies cannot be issued to non-natural persons or on raw acreage.

• The agent issued a short form policy on raw land or property described by metes and bounds or issued a short form policy on a construction transaction. This policy needs to be voided and a long form policy needs to be issued.

• In the unlikely event of incorrect or missing information on Schedule A of either a lender or owners policy, (missing loan numbers, effective time, or other identifiers) this can be corrected by issuing an Endorsement to “Schedule A” citing the new correct language and information.