- May 10, 1994
- All Issuing Offices
- Date of Incorporation Check
Recently, the company suffered a loss on a policy issued to a purchaser from a corporation. Apparently, a person discovered that a corporation which had forfeited its charter owned property. The person created a new company with the same name as the defunct company and sold the property owned by the defunct company. We insured and the stockholders of the defunct company later asserted their ownership causing a loss.
When the title company checked the status of the new company with the Secretary of State, it appeared to be in good standing. Had the title company checked the date of incorporation, it would have discovered that the incorporation date was subsequent to the date of acquisition, a certain "red flag".
When checking corporate, limited liability company, partnership, or limited partnership status with the appropriate state agency, always determine the date the entity came into existence and compare with the date of acquisition of the property you are insuring.
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.