White Paper

Types of ALTA Policies

 
The American Land Title Association (ALTA), a national association of commercial title insurers, title insurance agencies and abstractors has promulgated title insurance policy forms since 1946. The ALTA owner’s policies and loan policies are widely regarded as standard forms. The California Land Title Association (CLTA) has also promulgated policy forms, but is better known outside California for a multitude of policy endorsement forms. Finally, individual title insurers have developed and promoted the use of their own non-ALTA policy forms in certain states. Distinctly separate forms of policies of title insurance continue to be designed and promulgated by the ALTA to insure the interests of the owner and lender, respectively. It has been held that only the insured and those who succeed to the insured’s interest by operation of law can enforce the policy against the title insurer. Hawkins v. Oakland Title Ins. & Guar. Co., 165 Ca. App. 116, 531 P.2d 742 (1958). Thus, a loan policy that was issued insuring the lien of a mortgage does not provide or impart coverage to the mortgagor that owns the real estate encumbered by the insured mortgage. See, e.g. Mayo v. Title Ins. Co., 423 So.2d 1357 (Ala. 1982); Gaines v. American Title Ins. Co., 136 Ga. App. 162, 220 S.E.2d 469 (1975).

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Duane H. Wunsch is the vice president and state counsel for Fidelity National Title Group, Inc.’s Wisconsin office. He has 30 years of experience as in-house underwriting and claims counsel. Mr. Wunsch is a frequent lecturer to both attorney and nonattorney customer groups. He regularly conducts training sessions for title and escrow staff.

Faculty

Duane H. Wunsch

Duane H. Wunsch

Fidelity National Title Group, Inc.