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Bulletin: TX2024003

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Bulletin: TX2024003

Bulletin Document
V 2
Date: May 30, 2024
To: All Texas Issuing Offices
RE: UNDERWRITING - Lender’s Closing Instructions Requirement to Delete the Creditors' Rights Exclusion

Dear Associates:

We previously issued Bulletin SLS2024009 regarding the prohibition of removing the creditors’ rights exclusion from the policy jacket. The bulletin contained an example which referenced the ALTA 2021 policies. We have been asked if the bulletin also applies in Texas since it referenced ALTA policies.

The reference to ALTA policies in Bulletin SLS2024009 was merely an example of a closing instruction. The bulletin does apply in Texas.

The Texas Insurance Code Section 2502.006 prohibits any title insurance policy in Texas from providing creditors' rights coverage. Therefore, you may not remove the exclusion for creditors' rights from any Texas policy (Exclusion 4 in the T-1 and Exclusion 6 in the T-1R and T-2), nor may any form of express insurance be provided for creditors’ rights.

As a reminder, you are responsible for knowledge of and compliance with the information contained in all bulletins and Special Alerts as posted on Virtual Underwriter (www.vuwriter.com), whether you receive them by electronic distribution or not.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

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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