- April 05, 2005
- All Issuing Offices in New York
- First Amended and Restated Mutual Indemnity Agreement
Stewart Title Insurance Company is pleased to report its participation in the First Amended and Restated Mutual Indemnification Agreement, effective April 1, 2005. The Mutual Indemnification Agreement first effective in July of 2003, remains in effect for those policies issued by an Indemnitee prior to April 1, 2005. Together, the two documents will hereinafter be referred to as the "Agreement".
Those companies currently participating in the Agreement, in addition to Stewart are: Chicago Title Insurance Company, Commonwealth Land Title Insurance Company, Fidelity National Title Insurance Company, First American Title Insurance Company of New York, Lawyers Title Insurance Corporation, Old Republic National Title Insurance Company, Ticor Title Insurance Company, Ticor Title Insurance Company of Florida, Transnation Title Insurance Company of New York, and Washington Title Insurance Company.
As was the case previously, there is a Memorandum, executed by all of the above participants, which describes in further detail how the Agreement is to be implemented. A copy of that Memorandum follows this Bulletin. Also following is a copy of the current version of Applications of the Mutual Indemnity Agreement which contains interpretations of the Agreement for specific situations, each of which have been ratified by all participating companies.
You are urged to read the attached Memorandum for details of the Agreement, but I would like to take the opportunity to point out two major changes in the provisions effective as of April 1.
First, the limit for many monetary liens to be considered Covered Defects, as that term is defined, has been raised from $250,000 to $500,000. Please note however, that the limit for federal tax liens to be considered Covered Defects remains at $250,000.
Second, a loan policy issued by the Indemnitor (as defined) may now be used to clear a mortgage, open of record, which was not excepted in the Indemnitor's policy, provided, certain proofs of payment are obtained. Please see the Memorandum for the full details of what is required.
Again, please read the Memorandum for all of the details regarding application of the Agreement and, as always, for further guidance, please call company counsel at any time.
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.
For a copy of the attachments referenced in this Bulletin, please call STIC Legal Services at 800.433.0014.