Bulletin: TX2015001

Date:
May 21, 2015
To:
All Texas Issuing Offices
RE:
UNDERWRITING - SB 572 Increasing Texas Single Risk Retention Limits

Dear Associates:

We are pleased to announce that Governor Abbott signed SB572 into law effective September 1, 2015. This bill, which had broad industry support, increases our ability to issue policies on very large transactions without reinsurance. The bill increases the single risk limit from one-half of capital and surplus to one-half of capital, surplus, and statutory premium reserves. For Stewart, the effect will be to increase our single risk limit from $262,883,046 plus Lloyd’s excess coverage of $59,500,000 ($322,383,046) to $479,337,420 plus Lloyd’s excess coverage of $59,500,000 or $538,837,420. Of course, we can still issue a policy in excess of the new amount by reinsuring the excess amount.

WHAT THIS BILL MEANS TO YOU:

Beginning September 1, 2015, our ability to issue large liability policies without the requirement of reinsurance will dramatically increase and cover the vast majority of commercial projects in the State of Texas. 

This does not change the process for underwriting approval. All underwriting authority limits remain unchanged and the determination as to the necessity for reinsurance remains with the Senior Underwriters and the Reinsurance department.

As a reminder, the email to send your requests to is:

            HOUS Policy Request Approval Policyapprovalrequest@stewart.com; please feel free to continue to copy the underwriter of your choice with the email.   

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:
None