Bulletin: FL000033

Dear Associates:

Forgeries continue to be a problem in the title insurance industry. There will always be a small percentage of the population that would rather work at stealing than work for a living. Every title insurance underwriter and agent has to deal with this prospect. That includes you and that includes Stewart Title Guaranty Company.

While we have had forgery claims which we have had to pay, we have also had the occasion to prevent forgeries with the assistance of alert agents who promptly notified us of suspicious circumstances.

This is an important matter to both the agent and the underwriter. Although the forgery claim is filed with the underwriter, in the event that the forgery resulted form negligence in the agent's office in connection with the closing, it may well be that the agent will ultimately be held liable for the loss.

The Stewart Title Underwriting Manual contains a rather complete list of red flags which, if observed, could give warning of a potential forgery. Immediately following that check list of red flags is a mandatory procedure to be followed in connection with the possibility of a forgery.

Due to the importance of this matter, you are requested to review the contents of the attached with all of your closing personnel and your title plant personnel so that they will be alert to this.