Bulletin: TX000003

Date:
January 25, 1990
To:
All Texas Agents and Approved Examining Attorneys
RE:
Duplication of Preprinted Exceptions

Dear Associates:

We all like to be sure we have covered our bases and, in so doing, sometimes repeat an exception as a special exception in a policy when it is already included as an exclusion, exception or condition in the preprinted portion of the policy. This "belt and suspenders" approach usually has no after-effect, but occasionally an insured or his/her attorney requests that such a "redundant" exception be deleted. The result of this request, if complied with, is a commitment with a special exception in Section B and a policy without such exception. This gives the insured a strong argument that this was a negotiated deletion and might result in a court removing not only the special exception but the effect of its preprinted counterpart as well. In these day of DTPA and Bad Faith, please be very careful not to offer this opportunity for loss.

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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
TX 3.28 Commitments
Exceptions Manual:
None
Forms:
None