- March 02, 1992
- All Virginia Agents of Stewart Title Guaranty Company
- State Corporation Commission/Bureau of Insurance Administrative Letter 1992-6
Enclosed please find a copy of Administrative Letter 1992-6 issued February 19, 1992 by the State Corporation Commission/Bureau of Insurance. You should be receiving same directly from the Bureau of Insurance in the near future. In advance of your receipt of this letter from the Commonwealth, please be readvised as follows as to the policy of Stewart Title Guaranty Company.
The Bureau of Insurance has issued this letter as an interpretation of Section 38.2-4614 of the Code of Virginia. Essentially, the Bureau is saying that an agent is not "bona fide" and, consequently, not entitled to receive any compensation, if such agent does no actual title work or such agent contracts with a third party to perform the title search, underwriting, and the issuance of the policy and commitment. Since there are no regulations of the Bureau of Insurance that define conduct which violates this statute nor are there any state court decisions reported which define unacceptable conduct, this Administrative Letter 1992-6 is the best available interpretation of Sec. 38.2-4614.
Please be advised that Stewart Title Guaranty Company requires your agency to conduct its title business in accordance with the statutes, rules and regulations of Virginia's Bureau of Insurance. If your business is being conducted in any way which violates the letter of Section 38.2-4614 or its interpretation as stated by the Bureau of Insurance, terminate such activities immediately. Failure to comply with the acceptable standards of conduct promulgated by the Bureau of Insurance could lead to cancellation of your agent's license.
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.