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<br />
<br />CONDITIONS AND STIPULATIONS
<br />(Continued)
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<br />7. dETERMiNATION, EXTENT OF LIABILITY AND COINSURANCE.
<br />~ This policy Is a conlrael of Indemnity against aclual monetary loss or damage suSlBined
<br />or Incurred by the insured claimant who has sullered loss or damage by reason of mailers
<br />Insured against by lhls policy and only lo lhe extent herein described.
<br />(a) The liability of lhe Company under lhis policy shall not exceed the leasl of:
<br />(i) lhe Amounl of Insurance SlBled In Schedule A;
<br />(i1) . The dillerence belwllen lhe value ollhe insured eslale or inlerest as insured
<br />and lhe value of lhe Insured eslaI8 or Inleresl sUbJecllo .the defecl, lien or encumbrance
<br />insured against by this policy at lhe dale the Insured claimant Is required lo furnish lo
<br />Company a proof of loss or damage in accordance with Section 5 of these Conditions and
<br />Sllpulalions, ,
<br />(b) In lhe event lhe Amount of Insurance SlBled In Schedule A allhe Date of Policy Is less
<br />lhan 80 percent of lhe value of the insured estate or interest or lhe full consideration paid for
<br />the land, whichever is less, or If subsequent lo lhe Date of Policy an improvement Is erecled on
<br />Ihe land which Increases the value of the Insured eslale or Inleresl by alleasl 20 percent over
<br />the Amount of Insurance SlBled in Schedule A, lhen Ihis Policy is subjecllo lhe following:
<br />(i) where no subsequenl improvemenl has been made, as lo any partial loss, the
<br />Company shall only pay lhe loss pro rata In lhe proportion lhallhe amount of Insurance al Dale
<br />of Policy bears lo lhe total value of lhe Insured eslale or inleresl al Date of Policy; or
<br />(li) where a subsequent improvement has been made, as lo any partial loss, lhe
<br />Company shall only pay lhe loss pro rata in lhe proportion lhal120 percenl of lhe Amounl of
<br />Insurance stated in Schedule A bears lo the sum of lhe Amounl of Insurance Sleled71n
<br />Schedule A and the amount expended for the improve!"ent, ,
<br />The provisions of lhis paragraph shall not apply lo C:9sts, attorneys' fees and expenses
<br />for which lheCompany Is liable underlhls policy, and shall only apply lo thal portion cit any loss
<br />which exceeds, in lhe aggregale, 10 percent of the Amounl of.I'tsurance slaled in Schedule A,
<br />(c) The Company will pay only those cosls, attomeys' fees and expenses incurred in
<br />accordance wilh Section 4 of these Condlllons and Slipulations,
<br />
<br />8. APPOR1'lONMENT.
<br />If lhe land described In Schedule A conslsls of two or more parcels that are not used as a
<br />single Bile, and a loss Is eslabllshed anecting one or more of lhe parcels but not all, lhe loss
<br />shall be compuled and settled on a pro rata basis as If the amount of Insurance under lhls
<br />policy was divided pro rata as lo the value on Dale of Policy of each separale parcello the
<br />whole, exclusive of any Improvemenls made subsequenllo Dale of Policy, unless a liability or
<br />value has otherwise been agreed upon as lo each parcel by lhe Complll)Y and lhe Insured al
<br />the lime of the Issuance of this policy and shown by an express Sl8l8ment or by an endorse-
<br />ment anached lo lhis policy,
<br />
<br />9. LIMITATION OF LIABILITY.
<br />(a) If the Company eslabllshes the lille, or removes the alleged defecl, lien or encum-
<br />brance, or cures the lack of a right of access lo or from the land, all as Insured, or Iskes aclion
<br />in accordance with Sacllon 3 or Section 6, in a reasonably diligent manner by any melhod,
<br />Including Iillgation and the complelion of any appeals therefrom, II shall have fully parformed
<br />lis obligallons with respacllo lhal matter and shall not be liable for any loss or damage caused
<br />thereby,
<br />(b) In the event of any Iillgalion, including Iiligalion by lhe Company or wilh lhe Compa.
<br />, ny's consent, the Qompany shall hays no liability for loss or damage unllllhere has been a
<br />final daterminalion by a court of compelent jurisdlellon, and dlsposillon of all appeals there-
<br />from, adverse 10 lhe lllle as insured.
<br />(c) The Company shall not be liable for loss or damage lo any Insured for liability
<br />voluntarily assumed by lhe Insured in settling any claim or suil wilhout lhe prior written
<br />consent of the Company.
<br />
<br />10. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF LIABILITY,
<br />
<br />All payments under lhis policy, except payments made lor costs, attorneys' fees and
<br />expenses, shall reduce the amount of the insurance pro Isnto,
<br />
<br />11. LIABILITY NONCUMULATIVE.
<br />Ills expressly understood thstlhe amount of Insurance under this policy shall be
<br />reduced by any amount the Company may pay under any policy Insuring a mortgage 10 which
<br />exception Is taken In Schedule B or lo which the Insured has agreed, assumed, or leken
<br />subject, or which is hereafter execuled by an Insured and which Is a charge or lien on lhe
<br />eslale or interest described or referred lo In Schedule A, and the amounl so paid shall be
<br />deemed a paymenl under lhis policy lo lhe Insured owner.
<br />
<br />12. PAYMENT OF LOSS.
<br />(a) No payment shall be made wilhout producing lhis policy for endorsement ollhe
<br />paymenl unless lhe policy has been losl or destroyed, in which case proof of loss or
<br />daslruellon shall be furnished 10 lhe sallsfecllon of the Company.
<br />(b) When liability and lhe extent of loss or damage has been definitely fixed in accor.
<br />dance wilh these Condlllons and Slipulalions, lhe loss or damage shall be payable within 30
<br />days lhereafler,
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<br />13. SUBROGATION UPON PAYMENT OR SETTLEMENT.
<br />(a) The Company's Righi of Subrogalion.
<br />Whenever the Company shall have satlIed and paid a claim under this policy, all right of
<br />subrogalion shall vest in lhe Company unaffecled by any ael of lhe Insured claimanl,
<br />The Company shall be subrogaled lo and be entided lo all rights and remedies lhal the
<br />insured claimant WDuld have had against any person or property In respec:llo lhe claim had
<br />lhis policy not been issued, If requasled by lhe Company, lhe insured clalmant shalllransfer 10
<br />lhe Company all righls and remedies against any person or property necessary In order lo
<br />perfect lhls righl of subrogallon, The Insured claimant shall permit lhe Company lo sue,
<br />compromise or settle in lhe name of lhe insured claimant and lo use lhe name of lhe Insured
<br />clalmant In any lransacllon or Illlgatlon imlOlving these rights or remedies,
<br />If a payment on accounl of a claim does not fully cover lhe loss of the insured claimant,
<br />the Company shall be subrogated lo these righls and ramedles in the proportion that lhe
<br />Company's payment bears to lhe whole amount of lhe loss.
<br />
<br />Texas Owner Policy T-1 (10-1-91)
<br />Cover Page
<br />Form 1178.2
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<br />... . . "Q-
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<br />If loss should resull from any acl of the insured claimant, as stated above, lhat acl shall
<br />not void this policy, bul the Company, In lhal event, shall be required lo pay only lhat part of any
<br />losses Insured against by lhls policy lhal shall exceed lhe amount, If any,losllo lhe Company
<br />by reason of lhe Impairment by lhe Insured claimant of lhe Company's right of subrogallon,
<br />(b) The Company's Rights Against Non-Insured Obligors,
<br />The Company's right of subrogalion against non-insured obligors shall exist and shall
<br />Include, wilhout llmilsllon, lhe rights of the Insured lo Indemnities, guaranlles, other policies
<br />of insurance or bonds, nDlwlthslsndlng any lerms or condillons contained In those instru-
<br />manls lhat provicJe for subrogation righlS by reason of lhls policy.
<br />
<br />14. ARBITRATION.
<br />Unless prohlblled by applicable law, either lhe Company or lhe Insured may demand
<br />, erbilrallon pursuant lo the Tille Insurance Arbitration Rules of lhe American Arbilrallon
<br />Assoclalion. Arbllrable matters may include, bul are not IImiled lo, any controversy or claim
<br />belween the Company and lhe Insured arising out of or relatlng 10 lhls policy, any service of lhe
<br />Company In connection wilh lis Issuance or lhe braach of a policy provision or other obliga.
<br />lion, All arbllrable mattars when lhe Amount of Insurance is $1,000,000 or less shall be
<br />arbilraled allhe option of ellher lhe Company or lhe Insured, All arbllrable matters when lhe
<br />Amount of Insurance Is in excess of $1,000,000 shall be arbllraled only when agreed lo by
<br />bolh lhe Company and lhe insured, Arbltrallon pursuant lo lhis policy and under lhe Rules in
<br />effecl on the date lhe demand for arbllrallon Is made or, at lhe option of lhe Insured, lhe Rules
<br />In enect at Dale of Policy shall be binding upon lhe parties. The award may Include attorneys'
<br />fees only If lhe laws of lhe SIBle In which the land is localed permll a court lo award attorneys'
<br />fees lo a prevelllng party, Judgment upon lhe award rendered by lhe Arbilralor(s) may be
<br />entared in any court having Jurisdlelion Ihereof.
<br />The law of Ihe sllus of the land shall apply lo an arbllration under Ihe Title Insurance
<br />Arbitration Rules.
<br />A copy of lhe Rules may be oblained from lhe Company upon request,
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<br />15. LIABILITY LIMITED 10 THIS POLICY: POLICY ENTIRE CONTRACT.
<br />
<br />(a) This policy together with all endorsemenls, if any, attached herato by the Company Is
<br />lhe enlire policy and conlracl belWeen lhe Insured and lhe Company. In Interpreting any
<br />provision of this policy, lhis policy shall be construed es a whole,
<br />(b) Any claim of loss or damage, whether or not based on negligence, and which arises
<br />oul of lhe status of the lille lo lhe estale or Interest covered hereby or by any aellon asserting
<br />such claim, shall be restricted 10 lhis policy,
<br />(c) No amendment of or endorsemenl lo lhis policy can be made except by a writing
<br />endorsed hereon or altached herato signed by ellher the Presldent, a Vice President, the
<br />Secrelsry, an Assislsnl Secretary, or validaling officer or aulhorized slgnaloryof lhe Company,
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<br />16. SEVERABILITY.
<br />In the event any provision Qf lhe policy Is held Invalid or unenforceable under applicable
<br />law, lhe policy shall be deemed not lo Include lhat provision, and all other provisions shall
<br />remain in full force and effecl,
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<br />17. NOTICES, WHERE SENT.
<br />All notices required lo be given lhe Company and any stalement in writing required lo be
<br />furnished lhe Company shall include the number of this policy and shall be addressed lo lhe
<br />Company at COMMONWEALTH LAND TITLE INSURANCE COMPANY, EIGHT PENN CEN-
<br />TER, PHILADELPHIA, PENNSYLVANIA 19103-2198,
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<br />18. COMPLAINT NOTICE.
<br />Should any dispute arise about your premium or
<br />about a claim that you have filed, contact the agent or write
<br />to the Company that issued the policy. If the problem is
<br />not resolved, you also may write the Texas Department of
<br />Insurance, P.O. Box 149091, Austin, TX 78714-9091, Fax
<br />No. (512) 475-1771. This notice of complaint procedure is for
<br />information only and does not become a part or condition of
<br />this policy.
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<br />FOR INFORMATION, OR
<br />TO MAKE A COMPLAINT, CALL:
<br />1-800-441-0310
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<br />Valid Only If Face Page, Schedules A and B Are Attached
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