- February 08, 2011
- All Texas Issuing Offices
- Writing Mineral Coverage after Commissioner's Order 10-0959 Order in 2008 Rate Case
We are reissuing this bulletin in a simplified manner.
The Commissioner's order in the 2008 rate case provides for a 2% credit against the basic premium rate for an Owner's Policy of Title Insurance when a general exception for minerals is made. The Commissioner by letter affirmed that the reduction is based on the premium for an owner policy and not on Loan Policies or any endorsements. Recall that the endorsement is issued when you take a general exception to minerals instead of doing a complete mineral search and taking exception to the matters found. The order is effective January 1, 2011.
Our prior bulletin TX2009005 dealing with language in the commitment, the exception language to be used and the specifics of T-19.2 and T-19.3 are unchanged and remain in effect. Specifically, we believe that if you take exception to a specific document(s) that reserves all of the minerals, no credit is applicable and no T-19.2 or T-19.3 endorsements are allowed. If you do take a general exception and the customer insists upon a T-19.2 or T-19.3 or even a T-19 and a T-19.2 or T-19.3, you may issue them. You may insure "surface only" without searching minerals but taking exception to the contract or deed in the current transaction that reserves minerals if the sale contract specifies that the sale is of the surface only.
The premium for the T-19.2 and T-19.3 approved by the Commissioner in 2009 remains $50.
Our prior Bulletin TX2009007 dealing with coal, lignite, uranium, and similar materials remains in effect. In fact, you must not use P-5.1 when these types of leases are present in order to avoid compulsory issuance of the T-19.2 and T-19.3 endorsements.
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.
- Bulletins Replaced:
- TX2010013 This bulletin has been replaced.
- Related Bulletins:
- TX2009005 Resolution of Mineral Exception Issue; Commissioner's Order 09-0650
- TX2009007 Oil and Gas and Other Minerals Supplement
- Underwriting Manual:
- 12.16.4 Minerals Reservations In Patents
- Exceptions Manual: