Bulletin: NY000191

Dear Associates:

We have recently been made aware of a number of instances where policies have been issued by certain of our agents without proper authorization having been obtained from Stewart Title Insurance Company's ("STIC") Legal Department prior to closing. In most instances, the missing authorization concerns a policy issued in an amount in excess of the agent's contractual limit. Reference to each agent's Underwriting Agreement will establish the limit of authority.

Another instance requiring prior approval, but sometimes overlooked, is that which involves property, being sold, mortgages or purchased, by the agent personally. Typically, the STIC Underwriting Agreement will require prior written approval of any transaction in which the agent proposes to insure title where the agency or any of its partners, shareholders, employees or affiliates has or will acquire any interest, direct or indirect, in the subject premises.

Please note: Transactions other than those referenced above also require the written consent of STIC prior to the agent's issuance of a title assurance. If you are uncertain as to whether a specific transaction requires STIC's prior written consent, please contact Company counsel.

For your convenience, a copy of the STIC form of Request for Policy Approval is available through the references section at the end of this bulletin.

In those cases where reinsurance is also required reference should be made to STIC Underwriting Bulletin No. 188 dated January 2, 2002 for the proper procedure.