Lucien Paul & Cynthia Marie Moreau F101 warranty deed

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./ ../ CONDITIONS AND STIPULATIONS - Continued , . 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon wrillen request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the tiUe or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other mailer insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action that allege mallers not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion mey be necessary or desirable to establish the tiUe to the estate or interest, as insured, or to prevent or reduce loss or demage to the insured. The Company may take eny appropriate action under the terms of this policy, whether or not it shell be lIeble hereunder, and shell not thereby concede lieblllty or waive any provision of this policy. If the Company ~hall exercise Its rights under this paragraph, it shall do so diligenUy. (c) Whenever the Company shall have broughl an acUon or intarpoaad a defense as required or permllled by the provisions of this policy, the Company may pursue eny litigation 10 Iinel delermlnation by a court of compelant jurisdiction and expressly reserves the right, In lis sole discretion, 10 appeal from any adverse judgment or order, (d) In all ceS88 where Ihls policy permits or requires the Company to prosecula or provide for the defe"se of any action or proceeding, the Insurad shall secure 10 the Company the rlghl to so prosecula or provide defense In the action or proceeding, and all appeals Ihereln, and permit the Company 10 use, lilts option, Ihe name of the Insured for this purpose. Whenever requested by the Company, the Insured, at the Company's axpanse, shall give the Company all reasonable aid (I) In any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or eflacting settlement, and (II) In any other lawful act Ihat In the opinion of the Company may ba necessary or desirable to establish the Iltie to the eslala or Interest aslnsurad. If the Company Is prejudiced by the failure of the Insured to fumlsh the required cooparation,the Company's obligations to the Insured under the policy shalllarmlnsla, Including any liability or obligation to dafend, proaacula, or continue any IIllgation, with regard to the maller or mallars requiring such cooperetlon. 5. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Sectlon 3 of these Conditions and Stipulations have been provIded the Company. a proof of loss or damage signed and sworn 10 by the insured claimant shall be furnished to the Company within 91 days after the Insured claimant shall ascertain the fects giving rise to the loss or damage. The proof of loss or damage shall describe the defecl in, or lien or encumbrance on the tiUe. or other mallar Insured against by Ihls policy that constitutes the basis of loss or damage and shall slate, to Ihe extenl possible, the basis of calculaling the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations 10 the insured under the policy shalllarminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the maller or mallers requiring such proof of loss or damage, In eddition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Compeny and shall produce for examination. inspection and copying, at such reasonable times and places as may ba designated by any authorized represenlative of the Company, all records, books, ledgers, checks, correspondence and . memoranda, whether bearing a dete before or after Dala of Policy. which reesonably pertain to the loss or damage. Further, if requeslad by any authorized representative of the Company, the insured claimant shall grant ils parmission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably partain to Ihe loss or damage, All infonnation designated as confidential by the insured claimant provided to the Company pursuant to this Seelion shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reesonably requested infonnation or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall tarminate any liability of the Company undar this policy as to that claim. 8. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS, TERMINATION OF LIABILITY. In case of a claim under this policy, the Company shall have the following additional options: (a) To Payor Tender Payment of the Amount of Insurance. To pay or landar payment of the amount of insurance under this policy, together with eny cosls, attorneys' fees and expenses Incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tendar of payment and which the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any Iiabilily or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or WIth thelnaurad Claimant. (i) to payor otherwise settle with other parties for or in the name of an insured claimant any claim insured againsl under this policy, together with any cosls, attorneys' fees and expanses incurred by the insured claimant, which were authorized by Ihe Company up to the time or payment and which the Company is obligated to pay; or (ii) to pay or otherwise setUe with the insured claimant the loss or damage provided for under this policy, togelher with any cosls, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercisa by the Company of either of the options provided for in paragraphs (b)(i) or (ii), the Company's obligations to the insured under this policy for the claimed loss or damage. other than the payments required to be made, shalllerminala, including any liability or obligation to defend, prosecute or continue any litigation. 7. DETERMINATION, EXTENT OF LIABILITY AND CONINSURANCE. This policy Is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of mailers insured against by this policy and only to the extenl herein described. (a) The liability of the Company under this policy shall not exceed the least of: (I) the Amounl of Insurance stated in Schedule A; (Ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or inlerest subjeclto the defect, lien or encumbrance insured againsl by this policy althe date the insured claimant is required to furnish to Company a proof of loss or damage in accordance with Section 5 of these Conditions and Stipulations. (b) In the eventlhe Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or inlerest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erecled on the land which increases the value of the insured estala or interest by atleasl 20 percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following: (i) where no subsequent improvement has baen made, as to any partial/oss, the Company shall only pay Ihe loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or inlarest at Dala of Policy; or (Ii) where a subsequent improvement has been mede. as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 parcent of the Amounl of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and amount expended lor the i.mprovemenl. The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stalad in Schedule A. (c) The Company will pay only those cosls, attomeys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. APPORTIONMENT If the land described in Schedule A consisls of two or more parcels that are not usad as a single sila, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and setUed on a pro rata basis as if the amount of insurance under this policy wes divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvemenls made subsequent to Date of Policy, unless a liability or value has olherwise been agraed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express stalement or by an endorsement allached to this policy. 9. LIMITATION OF LIABILITY. (a) If the Company establishes the titie, or removes the alleged defect, lien or encumbrance. or cures the lack of a right of access to or from the land, all as insurad, or takes action in accordance with Section 3 or Section 6, in a reasonably diligent manner by any method. including litigation and the completion of any appeals therefrom, it shall have full performed ils obligations with respeclto that maller and shall not ba liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final delarmination by a court of compelant jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not ba liable for loss or damage to any insured for liability voluntarily assumed by the insured in setUing any claim or suit without the prior wrillen consent of the Company. 10. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF LIABILITY. All payments under this policy, except paymenls made for costs. attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. (Continued on Reverse Side of Page)