Bulletin: GM000002

Note: This Bulletin has been replaced by Bulletin GM000003 . Use it for reference only.

Date:
March 18, 1997
To:
All Issuing Offices in Guam
RE:
Stewart Reinsurance Retention

Dear Associates:

Before obtaining reinsurance, your office must first obtain the standard overlimits approval from Stewart Title Guaranty Company to issue a large commitment and/or policy as required by your agency, retainer, or underwriting agreement with Stewart Title Guaranty Company.

Stewart Reinsurance Retention

If our risk exceeds $10 million, you must obtain reinsurance. Please contact Stewart Title Guaranty Company's Reinsurance Department to obtain reinsurance over $10 million.

Forms subject to reinsurance include the following:

  • Any policy over $10 million
  • Endorsements if the policy exceeds $10 million
  • Multiple policies on different estates that total over $10 million
  • Multiple loan policies that total over $10 million
  • Guarantees (e.g., Trustee Sale Guarantees) over $10 million

If you issue an endorsement to a prior policy that was reinsured or that was over $10 million, you must get reinsurance.

Examples include disbursement endorsements, modification endorsements, and downdate endorsements.

When to Get Reinsurance

You must call the reinsurance or national legal department before you issue. If you issue a commitment before we get reinsurance, except to reinsurance approval (see Exhibit 1).

How to Get Reinsurance

Call Leslee Sisk at 1 (800) 729-1902, ext. 8227. You must submit a completed overlimit approval form and a completed reinsurance questionnaire. These forms are available from Stewart Title Guaranty Company Forms and Information Department (1 (800) 729-1901).

Overview

Please see our underwriting criteria if you want more information on our reinsurance guidelines.

Note: A copy of every policy issued by Stewart which exceeds $10 million must be sent to the reinsurance department along with a copy of the executed overlimit authority form and the reinsurance questionnaire.

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.

EXHIBIT 1

National Requirements

Overlimit of Issuing Agent

Policy: If the policies to be issued are in excess of the limits of the issuing agent's underwriting authority as set forth in the underwriting agreement or involve unusual risks, approval to issue such policies must be obtained from 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.

Policy Requires Reinsurance: If the policies to be issued are in excess of $10 million, issuance of this commitment and the policies is subject to the approval of Stewart Title Guaranty Company and its reinsurers prior to issuance. This commitment and any policies to be issued also are subject to any additional limitations, requirements, or exceptions made by Stewart Title Guaranty Company and its reinsurers.

Remember: Before obtaining reinsurance, your office must first obtain the standard overlimits approval from Stewart Title Guaranty Company to issue a large commitment and/or policy as required by your agency, retainer, or underwriting agreement with Stewart Title Guaranty Company.

References

Bulletins Replaced:
MU000013 Reinsurance
Related Bulletins:
None
Underwriting Manual:
17.20 Reinsurance
Exceptions Manual:
None
Forms:
None