TITLE 13 INSURANCE
CHAPTER 14 TITLE INSURANCE
PART 8 ENDORSEMENTS
13.14.8.1 ISSUING
AGENCY: Office of Superintendent of
Insurance (“OSI”).
[13.14.8.1 NMAC –
Rp, 13.14.8.1 NMAC, 1/1/2021]
13.14.8.2 SCOPE: This rule applies to all title insurers, all
title insurance agencies, and all title insurance agents conducting title
insurance business in New Mexico.
[13.14.8.2 NMAC –
Rp, 13.14.8.2 NMAC, 1/1/2021]
13.14.8.3 STATUTORY
AUTHORITY: Sections 59A-2-8, 59A-2-9,
59A-30-4, 59A-30-5, 59A-30-6, 59A-30-6.1, 59A-30-6.2 and 59A-30-8 NMSA 1978.
[13.14.8.3 NMAC – Rp, 13.14.8.3 NMAC, 1/1/2021; A, 1/1/2024]
13.14.8.4 DURATION: Permanent.
[13.14.8.4 NMAC –
Rp, 13.14.8.4 NMAC, 1/1/2021]
13.14.8.5 EFFECTIVE
DATE: January 1, 2021, unless a later
date is cited at the end of a section.
[13.14.8.5 NMAC –
Rp, 13.14.8.5 NMAC, 1/1/2021]
13.14.8.6 OBJECTIVE: The purpose of this rule is to establish
requirements for endorsements to title insurance policies.
[13.14.8.6 NMAC –
Rp, 13.14.8.6 NMAC, 1/1/2021]
13.14.8.7 DEFINITIONS: See 13.14.1 NMAC.
[13.14.8.7 NMAC –
Rp, 13.14.8.7 NMAC, 1/1/2021]
13.14.8.8 USE
OF CORRECTION/MULTIPURPOSE ENDORSEMENT:
NM form 11 may be used only as follows:
A. to
modify any promulgated form if the modification is authorized by these rules;
B. to insert,
delete or add to a commitment, policy or endorsement, language required or
authorized by any of these rules when appropriate to do so; or
C. to correct
errors in the information inserted in the appropriate spaces of any preprinted
commitment, policy or endorsement (but not to change, alter or waive the
promulgated terms) in the following manner:
“This endorsement amends (commitment, policy or endorsement) numbered
______, dated _____________ to read as follows:
[here insert language identifying the specific item being corrected and
the specific correction information.”]
No other amendments are made by this endorsement.”
[13.14.8.8 NMAC – Rp, 13.14.8.8 NMAC, 1/1/2021]
13.14.8.9 [RESERVED]
[13.14.8.9 NMAC - Rn, 13 NMAC 14.8.9, 5/15/2000; A, 3/1/2002; Repealed
1/1/2021]
13.14.8.10 [RESERVED]
[13.14.8.10 NMAC - Rn, 13 NMAC 14.8.11, 5/15/2000; A, 7/1/2006; A, 8/17/2009;
Repealed 1/1/2021]
13.14.8.11 IDENTIFIED RISK COVERAGE ENDORSEMENT: NM form 85 may be
attached to a policy only when authorized by order of the superintendent and
subject to such terms, conditions and rate(s) specified by the superintendent.
[13.14.8.11 NMAC –
Rp, 13.14.8.12 NMAC, 1/1/2021]
13.14.8.12 INSURING AROUND ENDORSEMENT:
A. NM form 43 may
be attached to a policy to insure around a lien or other adverse matter
excepted to in Schedule B if the title insurer
has determined that the lien or other adverse matter does not pose a material
risk under the policy.
B. In lieu of
attaching NM form 43, the exception to the lien or
other adverse matter may be omitted from the policy provided the insured
requests the omission, and the request and approval are documented or otherwise
memorialized in writing.
[13.14.8.12 NMAC – Rp, 13.14.8.13 NMAC, 1/1/2021]
13.14.8.13 CO-INSURANCE
ENDORSEMENTS: NM form 77 shall be attached to a policy to
provide coordinated and proportionate coverage by two or more title insurers.
Such coverage may be provided, either by endorsement attached to a single
policy and executed by or on behalf of the co-insuring title insurers, or by
the issuance of separate policies by or on behalf of each of the co-insuring
title insurers.
[13.14.8.13 NMAC –
Rp, 13.14.8.14 NMAC, 1/1/2021; A, 1/1/2024]
13.14.8.14 RESTRICTIONS, ENCROACHMENTS, AND
MINERALS ENDORSEMENTS:
A. Upon being furnished with a
satisfactory survey:
(1) NM form 50 and NM form 50.1 may be
attached to a loan policy;
(2) NM form 56 and NM form 56.1 may be
attached to an owner’s policy covering unimproved land;
(3) NM form 57 and NM form 57.1 may be
attached to an owner’s policy covering improved land; and
(4) NM
Forms 50, 50.1, 56, 56.1, 57, and 57.1 shall not be attached to policies issued
on one to four family residential property.
B. Each endorsement is to be issued
only in conjunction with the issuance of survey coverage pursuant to Subsection
C of 13.14.5.12 NMAC.
C. Paragraph (3)(b) of NM form 50,
Paragraph 4 of NM form 50.1, Paragraph (2) of NM form 56 and NM form 56.1,
Paragraph (2)(b) of NM form 57, or Paragraph 3 of NM form 57.1, as appropriate,
may be deleted if minerals rights have been severed and the insurer, in its
discretion, deems the risk of such coverage to be acceptable.
[13.14.8.14 NMAC – Rp, 13.14.8.16 NMAC, 1/1/2021]
13.14.8.15 LAND ABUTS STREET ENDORSEMENT: NM form 51 may be attached to a policy, upon
being furnished with a satisfactory survey. This endorsement may not be
attached to a policy that insures one to four family
residential property.
[13.14.8.15 NMAC - Rp, 13.14.8.17 NMAC, 1/1/2021]
13.14.8.16 LOCATION ENDORSEMENT: NM form 52 may be attached to a policy upon
being furnished with a satisfactory survey. This endorsement may not be
attached to a policy that insures one to four family
residential property.
[13.14.8.16 NMAC - Rp, 13.14.8.18 NMAC, 1/1/2021]
13.14.8.17 SAME
AS SURVEY AND SAME AS PORTION OF SURVEY ENDORSEMENTS: NM form 78 or 79 may be attached to a policy
upon being furnished with a satisfactory survey if the policy provides survey
coverage. These endorsements may not be attached to a policy that insures one
to four family residential property.
[13.14.8.17 NMAC - Rp, 13.14.8.19 NMAC, 1/1/2021]
13.14.8.18 CONTIGUITY OF PARCELS ENDORSEMENTS: NM form 54 or 66 may be attached
to a policy upon being furnished with a satisfactory survey. These endorsements
may not be attached to a policy that insures one to four family residential
property.
A. For an owner’s policy, the insured shall, have an interest (in fee, leasehold, or easement) in
both parcels referred to in NM form 54, or in all parcels referred to in NM
form 66.
B. For a loan policy the insured lender
shall, have a lien upon an interest (in fee,
leasehold, or easement) on both parcels referred to in NM form 54, or on all
parcels referred to in NM form 66.
[13.14.8.18 NMAC - Rp, 13.14.8.20 NMAC, 1/1/2021]
13.14.8.19 FIRST LOSS ENDORSEMENT: NM form 58 may be attached to a loan policy.
This endorsement may not be attached to a policy that insures one to four family residential property.
[13.14.8.19 NMAC - Rp, 13.14.8.21 NMAC, 1/1/2021]
13.14.8.20 AGGREGATION ENDORSEMENTS: NM form 60 or NM form 60.1 may be attached to
a loan policy. These endorsements may not be attached to a policy that insures
one to four family residential property.
[13.14.8.20 NMAC – N, 1/1/2021]
13.14.8.21 FOUNDATION ENDORSEMENT: NM form 61 may be attached to a loan policy
upon being provided a satisfactory survey.
[13.14.8.21 NMAC - Rp, 13.14.8.24 NMAC, 1/1/2021]
13.14.8.22 ASSIGNMENT OF RENTS OR LEASES
ENDORSEMENT: NM form 62 may be attached to a
loan policy. This endorsement may not be attached to a policy that insures one to four family residential property.
[13.14.8.22 NMAC - Rp, 13.14.8.25 NMAC, 1/1/2021]
13.14.8.23 ZONING
UNIMPROVED LAND ENDORSEMENTS:
NM form 64 or NM form 64.1 may be attached to a policy. These
endorsements shall not be attached to a policy that insures one to four family
residential property.
[13.14.8.23 NMAC - Rp, 13.14.8.26 NMAC, 1/1/2021]
13.14.8.24 ZONING - COMPLETED STRUCTURE
ENDORSEMENT, ZONING - LAND UNDER DEVELOPMENT ENDORSEMENT, AND ZONING -COMPLETED
STRUCTURE - NO APPLICABLE ZONING ORDINANCES ENDORSEMENT: NM form 65,
65.1 or 65.2 may be attached to a policy upon being furnished with a
satisfactory survey.
A. These endorsements shall not be
attached to a policy that insures one to four family residential property.
B. The coverage provided by any part of
each endorsement may not be increased, but may be
deleted.
[13.14.8.24 NMAC - Rp, 13.14.8.27 NMAC, 1/1/2021]
13.14.8.25 ACCESS AND ENTRY ENDORSEMENT: NM form 67 may be attached to a policy upon
being furnished a satisfactory survey. A
separate endorsement shall be issued for each public street, road
or highway for which the insured wants access and entry coverage, and a
separate premium shall be paid for each endorsement issued.
[13.14.8.25 NMAC - Rp, 13.14.8.28 NMAC, 1/1/2021]
13.14.8.26 INDIRECT
ACCESS AND ENTRY ENDORSEMENT: NM form 68 may be
attached to a policy upon being furnished a satisfactory survey. A separate endorsement shall be issued for
each public street, road or highway for which the
insured wants access and entry coverage, and a separate premium shall be paid
for each endorsement issued.
[13.14.8.26 NMAC - Rp, 13.14.8.29 NMAC, 1/1/2021]
13.14.8.27 UTILITY
ACCESS ENDORSEMENT: NM form 69 may be attached to a
policy upon satisfactory proof that the insured property has access to
specified public utilities.
[13.14.8.27 NMAC - Rp, 13.14.8.30 NMAC, 1/1/2021]
13.14.8.28 COMMERCIAL
ENVIRONMENTAL PROTECTION LIEN ENDORSEMENT:
NM form 70 may be attached to a policy.
This endorsement shall not be attached to a policy that insures one to
four family residential property.
[13.14.8.28 NMAC - Rp, 13.14.8.31 NMAC, 1/1/2021]
13.14.8.29 REVERSE
MORTGAGE ENDORSEMENT: NM form 71 may be attached to a
loan policy that insures one to four family residential property.
A. The loan policy
issued on a reverse mortgage may be issued in either the total amount of
advances or one hundred fifty percent of the total amount of advances as
requested by the lender. Schedule B of the loan policy issued on a reverse
mortgage shall contain the following special exception: “pending disbursement
of the full proceeds of the loan secured by the mortgage or deed of trust set
forth under schedule A hereof, this policy insures only to the extent of the
amount actually disbursed but increases as each disbursement is made, in good
faith, and without knowledge of any defect in or objections to, the title, up
to the full amount of the policy.”
B. The two
mortgages filed on a HUD HECM reverse mortgage loan may be insured on one loan
policy if the priority of the mortgages is disclosed when describing the
mortgages being insured in schedule A. The bracketed language in Subsection F
of Paragraph 4 of NM form 71 may be deleted from the endorsement with the
approval of the title insurer if:
(1) the
risk is deemed acceptable; and
(2) standard
exception No. 4 from schedule B of the underlying loan policy has been deleted,
at no additional premium. Otherwise, the brackets themselves shall be removed
and the language of Subsection F of Paragraph 4 of NM form 71 shall be included
in the endorsement.
[13.14.8.29 NMAC - Rp, 13.14.8.32 NMAC, 1/1/2021]
13.14.8.30 SINGLE
TAX PARCEL ENDORSEMENT: NM form 72 may
be attached to a policy. This endorsement shall not be attached to a policy
that insures one to four family residential property.
[13.14.8.30 NMAC - Rp, 13.14.8.33 NMAC, 1/1/2021]
13.14.8.31 MULTIPLE
TAX PARCEL ENDORSEMENT: NM form 73 may
be attached to a policy. This endorsement shall not be attached to a policy
that insures one to four family residential property.
[13.14.8.31 NMAC - Rp, 13.14.8.35 NMAC, 1/1/2021]
13.14.8.32 DOING
BUSINESS ENDORSEMENT: NM form 74 may be attached to a
loan policy. This endorsement shall not be attached to a policy that insures
one to four family residential property.
[13.14.8.32 NMAC - Rp, 13.14.8.35 NMAC, 1/1/2021]
13.14.8.33 SUBDIVISION
ENDORSEMENT: NM form 75 may be attached
to a policy. This endorsement shall not be attached to a policy that insures
one to four family residential property.
[13.14.8.33 NMAC - Rp, 13.14.8.36 NMAC, 1/1/2021]
13.14.8.34 EASEMENT
- DAMAGE OR ENFORCED REMOVAL ENDORSEMENT:
NM form 76 may be attached to a policy.
This endorsement shall not be attached to a policy that insures one to
four family residential property.
[13.14.8.34 NMAC - Rp, 13.14.8.37 NMAC, 1/1/2021]
13.14.8.35 [RESERVED]
[13.14.8.35 NMAC – N, 9/15/2010; Repealed, 1/1/2021]
13.14.8.36 ENERGY PROJECT
ENDORSEMENTS: NM form 88, 88.1,
88.2, 88.3, 88.4, 88.5, 88.6, 88.7, or 88.8 may be attached to a policy, as
applicable. These endorsements shall not be attached to a policy that insures
one to four family residential property.
[13.14.8.36 NMAC - Rp, 13.14.8.39 NMAC, 1/1/2021]
13.14.8.37 MEZZANINE FINANCING
ENDORSEMENT: NM form 89 may be
attached to an owner’s policy. This endorsement shall not be attached to a
policy that insures one to four family residential property.
[13.14.8.37 NMAC - Rp, 13.14.8.40 NMAC, 1/1/2021]
13.14.8.38 [RESERVED]
[13.14.8.38 NMAC – N, 9/15/2010; Repealed, 1/1/2021]
13.14.8.39 [RESERVED]
[13.14.8.39 NMAC - N, 3/1/2016; Repealed, 1/1/2021]
13.14.8.40 [RESERVED]
[13.14.8.40 NMAC - N, 3/1/2016; Repealed, 1/1/2021]
13.14.8.41 [RESERVED]
[13.14.8.41 NMAC - N, 7/1/2018; Repealed, 1/1/2021]]
13.14.8.42 CONDOMINIUM
ENDORSEMENTS: NM form 12 and NM form 30 may be
attached to a policy, as applicable.
Paragraph 3 of NM form 30 may be deleted at the option of the title
insurer.
[13.14.8.42 NMAC – N, 1/1/2021]
13.14.8.43 PLANNED UNIT
DEVELOPMENT ENDORSEMENTS: NM form 13 and
NM form 13.1 may be attached to a policy, as applicable. Paragraph 1 of NM form
13 may be deleted at the option of the title insurer.
[13.14.8.43 NMAC - N, 1/1/2021]
13.14.8.44 [RESERVED]
[13.14.8.44 NMAC - N, 1/1/2021]
13.14.8.45 DOWN DATE ENDORSEMENT TO
RESIDENTIAL LIMITED COVERAGE JUNIOR LOAN POLICY JR 1:
A. NM form 46 may
be issued one or more times after issuance of NM form 45.
B. NM form 46 may
not be issued more than one year after the date of policy stated in NM form 45.
C. Upon request of
the named insured and the proper recording of all necessary documents meeting
the title insurer’s underwriting standards, the amount of the loan secured by
the insured’s mortgage insurance previously stated in NM form 45 may be
increased by adding a Paragraph D, which shall read as follows: “D. The amount of insurance of the policy is
hereby amended to be $____,” subject to the payment of the applicable premium,
for the additional insurance.
[13.14.8.45 NMAC - N, 1/1/2021]
13.14.8.46 [RESERVED]
[13.14.8.46 NMAC - N, 1/1/2021]
HISTORY OF 13.14.8
NMAC:
Pre-NMAC History.
ID 74-1, Article 10, Chapter 58, Rule
2, Regulations for Filing Title Insurance Forms and Rates filed 3/7/1974.
SCC-85-6, Insurance Department
Regulation 30 - Title Insurance, filed 9/6/1985.
SCC-86-1, Insurance Department
Regulation 30 - Title Insurance, filed 5/9/1986.
History of Repealed Material. 13.14.8 NMAC, Endorsements, (filed
5/15/2000), was repealed and replaced by 13.14.1 NMAC, Endorsements effective
1/1/2021.
Other History.
Re-promulgated a portion of SCC-86-1, Insurance Department Regulation 30
- Title Insurance (filed 5/9/1986) and renumbered, reformatted
and replaced as 13 NMAC 14.8, Endorsements, effective 11/01/1996.
13 NMAC 14.8,
Endorsements (filed 10/2/1996), was renumbered reformatted, amended
and replaced by 13.14.8 NMAC, Endorsements, effective 5/15/2000, amended
effective 7/31/2014.
NMAC Endorsements,
effective 7/31/2014, amended effective 3/1/2016.
NMAC Endorsements,
effective 3/1/2016, amended effective 7/1/2018.