Bulletin: GM000003

Date:
September 08, 1998
To:
All Issuing Offices in Guam
RE:
Stewart Reinsurance Retention

Dear Associates:

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

STEWART REINSURANCE RETENTION

If risk exceeds $14,518,000, you must obtain reinsurance. Please contact Stewart Title Guaranty Company's Reinsurance Department to obtain reinsurance.

Forms subject to reinsurance include:

  • Any policy over $14,518,000
  • Endorsements if the policy exceeds $14,518,000
  • Multiple policies on different estates that total over $14,518,000
  • Multiple Loan Policies that total over $14,518,000
  • Guarantees (e.g. Trustee Sale Guarantees) over $14,518,000

If you issue an endorsement to a prior policy that was reinsured or that was over $14,518,000, 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 we obtain reinsurance, you must raise any exception providing that the commitment and any subsequent policies are subject to reinsurance approval (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 is 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 $14,518,000.00 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

Exception/ Requirements:

Over Limit of Issuing Agent

POLICY: If the 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, prior approval to issue such policies must be obtained from Stewart Title Guaranty Company. Additionally, any commitment and policies to be issued are subject to any additional limitations, requirements or exceptions made by Stewart Title Guaranty Company.

POLICY REQUIRES REINSURANCE

If the policies to be issued are in excess of $14,518,000 the following exception needs to be raised in the event that prior approval of reinsurance has not been obtained. "Issuance of this commitment and the subject policies 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."

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

Bulletins Replaced:
GM000002 Stewart Reinsurance Retention
Related Bulletins:
None
Underwriting Manual:
17.20 Reinsurance
Exceptions Manual:
None
Forms:
None