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Bulletin: NY000456

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Bulletin: NY000456

Bulletin Document
V 4
Date: September 22, 2010
To: All New York State Office Counsel, Managers and Agents
RE: Comfort Letters/Non-Impairment Letters

The New York State Department of Insurance issued Circular Letter No. 14 (2010) on September 14, 2010, "Title Insurance Companies' Issuance of Comfort Letters in Lieu of Endorsements". The Circular Letter addresses the "request that title insurance companies issue to such lenders 'comfort letters,' sometimes referred to as 'non-impairment letters,' which state that the coverage under an existing loan insurance policy continues in full force notwithstanding modifications to the insured loan. This circular letter addresses comfort letters that purport to modify the obligations of an existing loan insurance policy or that are otherwise issued in lieu of issuing an endorsement to a policy. The purpose of this circular letter is to provide guidance to title insurance companies regarding their obligations in such instances."

The letter provides that "a title insurance company may not issue a comfort letter to a lender in lieu of issuing an endorsement in a form, and subject to the rates, approved by the Superintendent."

NYSID Circular Letter No. 14 (2010) (click to view)

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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.

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