Residence Held in Trust: New Rules, Forms and System Changes
October 16, 2017
- The rules and endorsements apply to all personal residential policy forms except tenant content policy types.
- There is no rate impact.
- A homeowner, dwelling or a condominium unit policy can be issued when legal title to the residence is held in trust.
- Eligible policy types can be endorsed to insure a trustee and, if applicable, a trust.
- The trust, by itself, cannot be the named insured. The name(s) of the trustee(s) must precede the name of the trust as the named insured.
- Trustees that are corporations, partnerships or limited liability companies (LLCs) may be eligible for dwelling policies without liability coverage.
- Homeowners: CIT 06 15 12 17
- Homeowners Wind-Only: CIT W06 15 12 17
- Dwelling: CIT 06 16 12 17
- Dwelling Wind-Only: CIT W06 16 12 17
- Amend the definition of insured to include a trustee and, if applicable, the trust
- Specify coverages that only are applicable to the trustee and trust
- Limit the trustee’s coverage to when they are acting only in the capacity of managing the trust with respect to the insured property
- Amend other policy provisions to clarify the insuring conditions of property held under a trust
- A new company is created at the account level.
- The additional named insured or the first named insured is added or changed at the policy level.
A new mandatory field called Person Type has been added to PolicyCenter. When adding a new person or creating a new account on a policy, an agent must identify the person type as either:
- Individual with Trust
Figure 1: New mandatory field: Person Type
- A trust or trustee is listed as an additional interest on a new-business submission.
- A trust or trustee is listed as an additional interest on a policy change.
- Trustee (as Company)
- Grantor (as Company)
- Trustee (as Person)
- Grantor (as Person)
- Individual with Trust (as Person)
Agent Bulletins are provided for historical purposes only and have not been updated to include any changes that may have been made after publication. Agents can find the latest information by reviewing the applicable underwriting manuals and by logging in, then selecting Search → Search Frequently Asked Questions.