OLD REPUBLIC TITLE UPDATE

In the news ...   Tuesday, September 27,  2011

  

UNDERWRITING Bulletin No. 13


 

TO:                    All Delaware Agents

FROM:              Kate Blake-Endicott

DATE:               September 27, 2011

SUBJECT:      Elimination of Creditor’s Rights Coverage

 

 

 

This Bulletin supersedes all previous Bulletins pertaining to Creditor’s Rights Risk.

Effective immediately, Creditor’s Rights coverage, whether in the form of a specific endorsement

or in the use of a 1970 Policy or any similar Policy that provides creditor’s rights coverage for the

current transaction, is hereby eliminated. This action is being taken as a result of the recent

addition of Section 2502-006 to the Texas Insurance Code which prohibits a title insurance

company from doing business in Texas if that title insurance company provides current

transaction creditor’s rights coverage to a named insured anywhere in the United States. The only

exception to this prohibition is if the laws of a given state require that such coverage be given and

in those cases, approval of the Corporate Legal Department is required.

If the use of a 1970 Policy or any similar Policy that provides creditor’s rights coverage for the

current transaction is authorized, then the following separate exception must be taken in Schedule B:

 

Any claim, which arises out of the transaction creating the interest insured by this policy by

reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws.

Any questions concerning this issue should be referred to the Corporate Legal Department.

 

 

 

 

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Pennsylvania/u>

1265 Drummers Lane
Suite 220

Wayne, PA  19087

(610) 687-8020

(800) 842-2080

(610) 687-6056 - fax

 

Calder Square

P.O. Box 10326

State College, PA  16805

(814) 238-3600

(814) 238-3604 - fax

 

790 Holiday Drive
Third Floor
Pittsburgh, PA 15220
877-596-1260
412-921-6417 - fax

Delaware

32 The Green

Dover, DE  19901

(302) 734-3570

(800) 722-0784

(302) 734-3254 - fax

 

920 N. King Street

Suite 414

Wilmington, DE  19801

(302) 661-1997

(302) 661-1996 - fax

Maryland

Columbia Corporate Park

8840 Stanford Blvd.

Suite 4500

Columbia, MD  21045

(410) 953-6763

(800) 664-8306

(410) 953-6761 - fax

Virginia

9303 Center Street

Suite 101

Manassas, VA  20110

(703) 365-2300

(800) 232-6817

(703) 365-2400 - fax

 

1245 Mall Drive
Richmond, VA 23235
(804) 897-5499

(804) 897-9679 - fax

 

1800 Bayberry Court
The Meridian Building,
Suite 104
Richmond, VA 23229
(804) 441-6112
(804) 441-6050 - fax

 

Old Republic Title Update is published by the Mid-Atlantic Area Office of Old Republic National Title Insurance   Company in an effort to provide information relative to our industry on a timely basis. None of the materials included in this publication should be deemed legal or underwriting advice or should be acted upon without prior consultation with your underwriter or counsel.