Bulletin: NY000399

Date:
February 12, 2009
To:
All New York State Office Counsel, Managers and Agents
RE:
Indemnities to Clear Liens

Prior to insuring over a judgment or lien where any party is offering an indemnity or undertaking instead of the appropriate disposition of the judgment or lien, the indemnity must be presented to Agency Legal Services for approval. This requirement for approval applies to all judgments or liens affecting the transaction that total $50,000.00 or more in the aggregate.

Attached is a sample form for indemnity to be used.

The attached affidavit is only an example and intended for guidance only. Stewart Title Insurance Company may require additional language it deems necessary and appropriate.

In the event you are asked to insure over any judgments or liens which do not exceed the $50,000.00 in the aggregate threshold, you are still required to comply with your underwriting agreement and apply prudent underwriting criteria, which include an understanding of the party providing the indemnities financial condition, before you accept such indemnity.

Sample Affidavit (click to view)

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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None