Bulletin: CT000003

Dear Associates:

The following underwriting practice shall be effective upon receipt of this Bulletin, and supersedes previous Underwriting Alerts dated February 16, 1993 and June 8, 1993 relative to: Golden Hill Paugussett Tribe v. Weicker, et al.

Please be advised that we will continue to insure properties in Stratford, Shelton, Trumbull, Bridgeport, Monroe, and Orange where no notice of suit has been filed of record against the proposed insured. Attached hereto is a list of owners' names and property addresses of properties which are currently affected by litigation. This list supersedes that provided with our Underwriting Alert of February 16, 1993. These properties are not insurable at the present time.

As to other properties within the boundaries of the aforementioned towns, which are not currently the subject of litigation, we are willing to continue to insure with a limited exception as to marketability.

Please add the following exception to Schedule B of all OwnerPolicies to be issued in these areas after receipt of this bulletin and until further notice:

"Any claim of unmarketability of the insured premises arising out of any claims of the Golden Hill Paugussett Indians in and to the insured premises where any mortgagee of the insured or any contract purchaser from the insured or their proposed mortgagee has been offered a commitment to insure over such claims at regular rates, by any title insurance company licensed to do business in the State of Connecticut at date of such application. Stewart Title Guaranty Company agrees, upon request of any mortgagee or purchaser from the Insured, or the proposed mortgagee of any purchaser to issue its Policy of Title Insurance without exception to claims of the Golden Hill Paugussett Indians except as hereinbefore stated."

It is imperative for your own protection, as well as ours, that your clients understand that the title insurance policy which they receive protects them against litigation costs in defense of any future action against them or any ultimate loss or damage, should there be a final order by a court of competent jurisdiction, after all appeals, vesting title in the Golden Hill Paugussett Indians. The exception proposed above seeks only to limit and clarify our exposure as to claims of unmarketability.

Simply stated, your client must be made aware of the fact that we will not be obligated under the policy to make payment to them should a subsequent purchaser or mortgagee refuse to purchase their property or loan money and take back a security interest in the property because of this Indian Claim issue. We will, however, continue to make the same coverage available to prospective purchasers or mortgagees.

While we believe that the ALTA policy form currently in use and prior versions may allow us this option even without this exception, we believe it to be in the best interests of all concerned to clarify any misconceptions about this coverage issue at the outset so that all parties are fully informed as to the coverage being provided. You may want to have clients sign a confirmatory letter that they have been made aware of the fact that coverage as to marketability is limited by the proposed exception and that it was fully explained to them prior to policy issuance and payment of premium.

As more information becomes available, we may be adding to the list of currently uninsurable properties. Of course, we expect that should you have knowledge of the fact that a client has been served and made a party to any lawsuit whereby the Paugussett Indians or any other tribe are claiming title to their property, you will not issue policies. Also, remember that all currently applicable underwriting standards as to policy issuance continue to apply. No survey coverage should be given on Owner Policies without a current A-2 Survey. Mechanics' Lien and tenant coverage cannot be given without execution of appropriate affidavits. Of course, all recorded instruments which affect title should be excepted to on Schedule B, including past-due taxes, liens or assessments, if any.

Please contact the Connecticut District Office of Stewart Title Guaranty Company-Hartford (1-800-448-9302) should you have any questions.

Properties Affected By Golden Hill Paugussett Tribe Claims

The following are properties listed in the Amended Complaint dated November 4, 1992 (Bridgeport property) and in a Complaint dated January 6, 1993 (Trumbull property) and in a Complaint dated April 1, 1993 (Orange property). This information is intended to be used as a guide and not as an accurate statement of the addresses or owners of the affected properties, as there appear to be some spelling errors, and as title to some of the Bridgeport property is stated as being vested in failed lending institutions.

BRIDGEPORT PROPERTY