Bulletin: AR2012001

Date:
February 23, 2012
To:
All Arkansas Issuing Offices
RE:
Fairway Endorsement 3

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

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:
STG Fairway Endorsement 3