- January 25, 2012
- All Washington Issuing Offices
- Underwriting Minute
Nothing Ventured Nothing Gained
When submitting information for approval of an indemnity agreement, make sure that the financial information that you send is for the specific proposed indemnitor. The financial statement for an entity or individual is of no use, unless that specific person or entity will be signing the indemnity agreement and putting those assets on the line. The agreement is only as good as the party signing.
Financial information to support the approval of an indemnity should consist of the most recent available balance sheet, showing the assets, liabilities and net worth of the proposed indemnitor and the profit and loss statement for the latest reporting period. We look for the detail in both sets of information. Tax returns are generally out of date, for our purposes, and usually not helpful at all.
Forewarned is Forearmed
Indemnity agreements are useful devices, but generally limited in their use to those issues that can be made to go away as a matter of right by the payment of money, such as liens and judgments. Issues that go to the heart of title are rarely the subject of indemnity agreements.
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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.