Guideline: STG Request for Approval to Issue Overlimits (Large) Policy or Extra Hazardous Coverage
Underwriting approval from the Company is required under a variety of circumstances, including but not limited to situations where policy amounts exceed an issuing office’s underwriting authority limits, or where there are mechanic’s lien issues or other extrahazardous risks, etc.
The STG Request for Approval to Issue Overlimits (Large) Policy or Extra Hazardous Coverage Form (the "Overlimits Form") is the primary method for requesting and receiving underwriting approval.
Underwriting approval from a Stewart Title Guaranty Company underwriter is required when the policy amount exceeds an issuing office’s underwriting authority amount. In addition, underwriting approval for high liability, mechanics' lien issues, and any other extrahazardous risks is always required. Examples of extrahazardous risks can be found in Virtual Underwriter, National Underwriting Manual, Section 5.36. The Overlimits Form must also be submitted in the event there is any conflict of interest or potential conflict of interest in the issuance of any title insurance policy, regardless of the amount of the policy.
Several Endorsement Supplements are linked to the Overlimits Form. If any endorsements are requested, issuing offices must complete the applicable Endorsement Supplement and attach it to the Overlimits request. If any ALTA endorsement form or other standardized form is modified, or any other endorsement form is used, please provide a copy of the non-standard form, marked to show variations from the standard endorsement. An explanation should accompany a copy of the requested endorsement form.
The Overlimits Form must also be submitted for Modification endorsements issued to an existing policy if such policy exceeds an issuing office’s underwriting authority amount, unless waived by an underwriter.
Issuing offices must obtain Overlimits approval before issuing a commitment. In the event the referenced commitment is released prior to approval by Stewart Title Guaranty Company, the following must be included in the commitment:
Approval to issue this policy must be obtained from authorized Underwriting Personnel of Stewart Title Guaranty Company. This commitment and any policies to be issued are subject to any additional limitations, requirements or exceptions made by Stewart Title Guaranty Company.
The Overlimits Form must be signed by the applicable State, District or Division Counsel, or other Underwriter before forwarding to a Senior Underwriter. Under certain circumstances, multiple levels of approvals may be required. Please allow ample time for this process.
Approvals, when issued by underwriting personnel, are based upon the information that is supplied with the Overlimits request. If there are additional material facts or any substantive change of circumstances between the date of approval and the date of closing, or if additional coverages are requested, issuing offices must obtain supplemental written approval, preferably from the Stewart underwriter from whom the prior approval was obtained.
The Overlimits Form and Endorsement Supplements are revised from time to time. The Overlimits Form and Endorsement Supplements are available in the STG Forms Section on Virtual Underwriter. The last revision date of these forms appears at the bottom of the form posted in Virtual Underwriter. Please ensure that your system is updated promptly with the most current versions of the Overlimits Form and corresponding Endorsement Supplement, or please return to Virtual Underwriter each time to utilize the most current version of these forms for each Overlimits Request.
Approval of an Overlimits Form is not an approval for Reinsurance. If the Policy amount is $100 million or larger, please contact the Reinsurance Department even if Reinsurance is not required, so that the transaction may be properly reported to management.
Issuing offices must include the Reinsurance Department in the approval process on any transaction that equals or exceeds $100 million (or one with smaller retention limitations, if applicable), as early as possible. Transactions equal to or exceeding $100 million must be reported to Management even if reinsurance is not being requested. Please provide the Reinsurance Department with the following:
(1) a copy of the completed, signed Overlimits Form,
(2) a copy of the commitment or preliminary report and pro forma, if any,
(3) a concise description of the transaction,
(4) a list of requested endorsements,
(5) the settlement statement, and
(6) the premium amount (including breakdown of endorsement charges).
Any changes that occur between the approval of the Overlimits Form and the closing require updating with the Reinsurance Department and disclosure to reinsurers. Please allow ample time for reinsurance review and approval - preferably three (3) business days, but no less than 24 hours.
The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.
Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.
This guideline applies to the following form(s):