NM Owner's Leasehold Conversion Endorsement Guideline 31

Explanation:

An Owner's Policy with a Leasehold Owner's Endorsement (NM 20) may be converted to a standard Owner's Policy by the issuance of an Owner's Leasehold Conversion Endorsement (NM 31).

Underwriting Requirements:

We require the following:

1. An Owner's Policy with a Leasehold Owner's Endorsement (NM 20) may be converted to a standard Owner's Policy if the owner of the leasehold interest acquires the fee title interest within three (3) years of the effective date of the original Owner's Policy with a Leasehold Owner's Endorsement (NM 20).

2. In addition to the Owner's Leasehold Conversion Endorsement (NM 31), a Multipurpose Endorsement (NM 11) shall be issued reflecting any changes to the estate insured and adding or deleting exceptions, and otherwise modifying the policy to accurately reflect the current condition of title of the estate insured as a down date endorsement.

3. The endorsement premium for such conversion shall be 50% of Basic Premium Rate up to face amount of leasehold owner's policy plus an additional amount from applicable brackets of the Basic Premium Rate.