Chicago Title Endorsement Handbook - Chicago, IL

Non-ALTA 2006 • 331 ASSIGNMENT OF POLICY This endorsement is only available for owner’s policies (loan policy version can be found in the Date Down Endorsement section). The endorsement substitutes the name of the Insured with the name of the New Insured. The endorsement does not extend the effective date of the policy. Nor does it insure that the New Insured holds title to the land. In order to appreciate this endorsement one must consider Policy Condition paragraph 2, entitled Continuation of Coverage. Once an Insured conveys the Land in question, the policy terminates unless the Insured retains an interest in the Land; e.g. warranties included in a Warranty Deed. Therefore, in order to negate this Condition, an Insured would request this Endorsement. Generally, the Original Insured will contact the title company and request this endorsement to cover the contemplated conveyance. The title company may issue, for a fee, this endorsement provided the conveyance is for zero consideration and is considered an exempt transaction. In other words, the Insured conveys to an entity that is a related party and not a separate unrelated entity. Assignment of Policy Endorsement