- November 03, 2011
- All Alabama Issuing Offices
- Revisions to Reissue Credit Rules
The Alabama Department of Insurance has approved Stewart's reissue credit rate rule filing. Previously, a policy could not be more than five (5) years old in order for reissue credit to be applied. This policy-age limitation has been eliminated with policies bearing a Date of Policy of November 1, 2011, and thereafter.
A copy of the new Rate Manual is provided herewith.
II. AFFECTED SECTIONS OF THE MANUAL
A. Section II(C) - Reissue Credit on Owner's Policies (Page 5)
This section was slightly revised to eliminate the five (5) year term limitation currently in place which defines and places limits on when reissue credit can be offered to proposed insured owners. Therefore, a policy of any age can be used for reissue credit purposes effective with policies issued on or after November 1, 2011. This will allow a reissue credit of 40% of the rate applicable to the prior policy.
B. Section III(C) - Reissue Credit on Loan Policies in Refinances (Page 6)
This section was also modified to bring it in line with Section II(C) and for consistency in application of the reissue credit rule.
III. CONDITION TO APPLYING REISSUE CREDIT
Under the rules adopted by the Alabama Department of Insurance, you must have a copy of the prior policy in order to apply a reissue credit. "Prior policy" is defined as a copy of the policy jacket AND a copy of the schedules.
Beginning with policies that have a Date of Policy of November 1, 2011, and thereafter, there will be no limitation on the age of the prior policy on which reissue credit can be based. This rule change will help you to be more competitive in your market or practice area and will go a long way in allowing you to better serve your clients.
As a reminder, agents using AFW should contact PropertyInfo Customer Care to get the new rate changes implemented in their AFW system.
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.