Will transfer of title cause loss of insurance coverage?

[Clint Votruba]

Client took title to property as follows:

John Smith, as trustee of the Amended and Restated John Smith Trust dated January 1, 2006

He received an Owner’s Policy with insured named as:

John Smith, as trustee of the Amended and Restated John Smith Trust dated January 1, 2006

Facts: At closing, he paid CASH and John Smith was also the Beneficiary of the Trust.

Now he wants to deed out title as follows:

John Smith, a single man and Debbie Johnson, a single woman, as Joint Tenants

Question: Could he lose title insurance coverage if he deeds out?

Standard Policy Jacket language:

2.CONTINUATION OF INSURANCE

The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not continue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured.

Thank you in advance for your comments