Bulletin: AR2012001

Dear Associates:

This Bulletin is to inform you that we have filed the STG Fairway Endorsement 3 with the Arkansas Insurance Department.  The department has approved it for use beginning January 13, 2012.  The purpose of this endorsement is to assure that the Owner’s Policy continues to cover a Limited Liability Company which adds new or different members. The 2006 ALTA Owner’s Policy added to the definition of the "Insured" successors by "reorganization."  An "Insured" is defined, in part, to include "successors to an Insured by dissolution, merger, consolidation, distribution or reorganization."  Nevertheless, Companies are requested from time to time to provide such coverage, and no form of the coverage was heretofore available in Arkansas.  The endorsement may be found in Virtual Underwriter under Arkansas Forms. 

Prudent underwriting practice would require you to review the Limited Liability Agreement to determine that there is no contravening language that could cause the LLC to be terminated or wound up simply because there is or will be a partial change in the ownership of the LLC. 

This Endorsement may be issued on Owner’s Policies covering residential property, farmland, commercial land or any other type of land. 

You should consult with and obtain authorization from your STG Arkansas underwriter before issuing this endorsement.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.