Bulletin: IN000009

Dear Associates:

The Homeowners Policy Conversion Endorsement will allow your residential customers, upon payment of an additional premium, to convert their existing 1992 Owners Policy to an ALTA 1998 Homeowners Policy at the time of refinance or any other time.

Underwriting Guidelines:

1. Can only be issued as an endorsement to previously issued Stewart Title Guaranty ALTA 1992 Owners Policies.

2. Use the same underwriting requirements for issuing a Homeowners Policy in a bona fide sale transaction with the exception that a Homeowner's Policy affidavit is not required unless the policy date is changed.

3. If the original policy date is before 10/17/98, conduct your normal search and exam to change the policy date to a post 10/16/98 date. The new policy date will be the date through which you examine title. Require owners to execute a Homeowners Policy Affidavit.

4. If the original policy date is after 10/16/98, the policy date remains the same unless customer requests that the policy date be updated to the date through which you examine title. Conduct your normal search and exam. Require owners to execute a Homeowners Policy Affidavit.

5. Issue the Endorsement with an ALTA Homeowner's Policy of Title Insurance (10/17/98) Jacket, including the Owner's Information Sheet, Owner's Coverage Statement and Exclusions and Conditions, along with Schedules A and B of the previously issued 1992 Owners policy, and any additional endorsements. The Homeowners Policy Deductibles and Maximum Dollar Amounts are incorporated into the Conversion Endorsement. If the policy is updated, attach an additional endorsement showing the new policy date and setting forth any new matters affecting title.

Pricing:

1) $50.00 additional premium if no change in policy date.

2) $50.00 additional premium plus any related search/exam fee for updating policy through date which you examine title if original policy issued prior to 10/17/98 or upon customer request.

3) The premium collected for the Conversion Endorsement is to be split in accordance with your agency contract. Report premium under the new policy number using Transaction Code 555.