Virtual Underwriter

© 2020 Stewart Title Company

Bulletin: MU000025

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Bulletin: MU000025

Bulletin Document
V 5
Date: September 08, 1998
To: All Issuing Offices Issuing on Land Located in Argentina, Canada, Mexico, Puerto Rico, Virgin Islands and Northern Mariana Islands
RE: Stewart Reinsurance Retention

Dear Associates:

Before obtaining reinsurance, your office must first obtain approval from Stewart Title Guaranty Company ("STGC") to issue a large commitment and/or policy or title guaranty as required by your agency, retainer or underwriting agreement with Stewart Title Guaranty Company.

STEWART REINSURANCE RETENTION

If our risk exceed $10,000,000, you must obtain reinsurance. Please contact Stewart Title Guaranty Company's Reinsurance Department to obtain reinsurance.

Forms subject to reinsurance include:

  • Any policy or title guaranty over $10,000,000
  • Endorsements if the policy or title guaranty exceeds $10,000,000
  • Multiple Policies or title guarantys on different estates that total over $10,000,000
  • Multiple Loan Policies or title guarantys that total over $10,000,000
  • Guarantees (e.g. Trustee Sale Guarantees) over $10,000,000

If you issue an endorsement to a prior policy that was reinsured or that was over $10,00,000, you must get reinsurance.
Examples include:

  • Disbursement endorsements
  • Modification endorsements
  • Downdate endorsements

WHEN TO GET REINSURANCE?

  • You must call us before you issue.
  • If you issue a commitment before reinsurance is approved, the commitment must provide a reinsurance exception (please refer to Exhibit 1 for samples).

HOW TO GET REINSURANCE?

  • Call Leslee Sisk at 1-800-729-1906, Ext. 8227; FAX (713) 552-1703 or email lsisk@stewart.com.
  • Send a completed STGC Overlimit Approval Form.
  • Send a completed STGC Reinsurance Questionnaire.
  • The above forms are available from Stewart Title Guaranty Company Forms and Information department by calling 1-800-729-1901. These forms are also available in Virtual Underwriter.

OVERVIEW

Please see our underwriting criteria if you want more information on our reinsurance guidelines.

Note: A copy of every STGC policy issued which exceeds $10,000,000.00 must be sent to the Reinsurance Department along with a copy of the executed Overlimit Authority Form and the Reinsurance Questionnaire.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

EXHIBIT 1

National Requirements

Over Limit of Issuing Agent

POLICY: If the policies or title guarantys ("policies") to be issued are in excess of the limits of the issuing agent's underwriting authority as set forth in the Underwriting Agreement or involve unusual risks, approval to issue such policies must be obtained from Stewart Title Guaranty Company. Accordingly, any commitment and any policies to be issued are subject to such additional limitations, requirements or exceptions made by Stewart Title Guaranty Company upon completion of its review.

POLICY REQUIRES REINSURANCE
If the policies or title guaranty ("policies") to be issued are in excess of $10,000,000, the following exception must be raised. "Issuance of this commitment and any policies to be issued are subject to the approval of Stewart Title Guaranty Company and its reinsurers prior to issuance. This commitment and any policies to be issued also are subject to any additional limitations, requirements or exceptions made by Stewart Title Guaranty Company and its reinsurers."

REINSURANCE AGREEMENT

Note: The form of Reinsurance Agreement utilized will be an ALTA form modified so a suit cannot be brought against the reinsurers in the jurisdiction of the land.

Remember: Before obtaining reinsurance, your office must first obtain the standard overlimits approval from Stewart Title Guaranty Company to issue a large commitment and/or policy as required by your agency, retainer or underwriting agreement with Stewart Title Guaranty Company.

References