This bulletin reminds you of certain requirements relating to the Request for Approval (Overlimits) Form.
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.
Approvals, when issued by underwriting personnel, are based upon the information that is supplied with the 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, you must obtain supplemental written approval, preferably from the Stewart underwriter from whom the prior approval was obtained.
You must include the Reinsurance Department in the approval process on any transaction that is $100 million or more (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 you are not requesting reinsurance. 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).
If any ALTA form or other standardized form is modified or any other form is used, an explanation should accompany a copy of that endorsement form. Any changes that occur between the overlimits approval 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 Overlimits Approval form must 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.
Below is a link to the Request for Approval (Overlimits) form, which is available in the STG Forms Section on Virtual Underwriter. The Request for Approval (Overlimits) form may be updated from time to time, therefore, please ensure that you utilize the most current version of the form for your request, by returning to Virtual Underwriter each time. Please also note that the short form Request for Approval is no longer approved for use.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
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