Bulletin: FL000119

Date:
December 22, 2006
To:
All Issuing Offices in Florida
RE:
Department of Financial Services Enforcement Action

Dear Associates:

It has been brought to our attention that the Department of Financial Services ("DFS") has recently fined and placed several title agencies on probation for what it has determined are violations of Rule 690-186-003 FAC regarding remittance to the underwriter on simultaneously issued lender policies.

Specifically, according to the DFS, if the agent charges more than $25 for simultaneous issue, even if $25 is disclosed on the HUD as the risk rate, the 30% to be remitted to the insurer must be based on the total charged, not $25.  Accordingly, if an agent charges $100 for simultaneous issue, DFS has determined that $30 must be remitted to the Underwriter.

Presumptively, DFS will use the same standard when determining the proper remittance for those endorsements which have a minimum promulgated rate.

If you have any questions regarding this matter, please contact our Florida underwriting counsel.

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:
None
Exceptions Manual:
None
Forms:
None