If the Grantee is not an Insured as defined by the policy, I believe a better course of action would be to buy a new title policy.

This property meets the requirements of Sections 1947.12 (d) (5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation."

Define 1 above and seek out deals that fit your targets. 

When do they have to define what weeks?

In any of these scenarios, you're going to be truly passive as the ones borrowing your money pay you and do the work.KNOW YOUR GOALS It is important to clearly define your goals and strategies for your money. 

But, how do you define what "active" is?

You will need to start by clearly defining what exactly you want to accomplish.On one axis you have a severity scale - minor impact to our life, to catastrophic destruction. ( how bad can this thing really get?)

Generally speaking there are 2 main types of loans for investors: “Conventional” and “Portfolio”Conventional - I'll define these as loans that come from Fannie Mae and Freddie Mac (if you recognize those names).

Investor A might have had a defined investment period and forced-sale rights, or might have asked the sponsor to exit despite the loss because they had another need for their capital. 

I did this around OSU campus when my rental was off cycle...but this is way too much work unless you are making substantially more money per bed than you will for the unit as a whole...just make sure lease says they are renting a specific bed and defines shared common space and what they are responsible for when it comes to utilities etc.