Bulletin: NL000055

Dear Associates:

When arbitration is expressly provided for in a title insurance policy, it is the preference of Stewart Title Guaranty Company to use this method of claims resolution versus litigating the matter, except in instances expressly approved by our General Counsel, Chief Claims Counsel, or Marietta Maxfield, Special Counsel. Please so advise all outside legal counsel before they are employed to work on any new claims, so that they preserve all our rights of arbitration. The use of arbitration is a decision which should be reached quickly after receiving a claim on a title insurance policy so that rights to arbitrate are not waived or diminished. We believe that arbitration serves the consumer well in providing a quick resolution to coverage disputes.

Unless deleted by endorsement, binding arbitration is expressly provided for as a claims resolution method in Stewart policies issued in the ALTA format since June 1, 1987. The 1992 Florida policies have modified the clause to authorize binding arbitration only by agreement of the parties after the dispute has occurred. In Texas, rules are promulgated that regulate the deletion of arbitration provisions. By its terms, the policy arbitration clause applies only to those policies in amounts under $1 million dollars, and is enforceable only in those states with statutes that allow insurer-insured disputes over policy claims to be arbitrated.

Thank you for your attention to arbitration.