- January 10, 2011
- All Michigan Issuing Offices
- Reinsurance Bill/ Public Act 338 of 2010
Please be advised that on December 22, 2010, the Governor signed into immediate effect PA 338 of 2010, self-styled the "Reinsurance Bill" which Act modified the provisions of MCL 500.640. The change allows an:
"Insurer transacting business in the state that has obtained a certificate of authority authorizing the transaction of title insurance in (Michigan) before the date of the amendatory act that added this subsection shall not expose itself to any loss on any 1 title insurance risk or hazard in an amount exceeding 50% of its paid up capital and surplus."
As a result, Stewart Title has been able to significantly increase the amount of insurance risk it can assume on any single commercial transaction without requiring re-insurance, thereby lowering the Agent's expense in the transaction.
If you have any questions relating to this or other bulletins, please contact your local underwriting personnel or Stewart Legal Services.
This Bulletin relates solely to the State of Michigan.
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.