Neal & Selma Joyce Hinson and Darrell & Niki D'Layne Warden grantors

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... e 5. PROOF OF LOSS OR DAMAGE. In addllion 10 and after lI!e notices required under Seellon 3 oIthase Conditions and Sllpulations have been providad lhe Company, a proof 01 loss or damage signed and sworn 10 by lhe insured claimam shall be furnished 10 lhe Company within 91 days after lhe Insured claimanl shall ascertain lhe Iacls giving rise 10 the loss or damage, The proof 01 loss or damage shall describe lhe defeel in, or lien or encumbrence on the litle, or other mBller Insured against by lhis policy lhat constitules the basis 01 loss or damage and shall state, 10 the extem possible, the basis 01 calculating the amoum oIlhe loss or damage. If lhe Company is prejudiced by lhe feilure of lhe insured claimam to provide the required proof of loss or damage, lhe Company's obligalions 10 lhe insured underlhe policy shalllenninate, including any liability or obligalion 10 delend, prosecule, or continue any litigation, wilh regard 10 the maner or mBl\ers requiring such proof 01 loss or damage. In addition, the Insured claimant may reasonably be required 10 submlllo examination. under oath by any authorized represenlelive oIlhe Company and shall produce for examina- lion, inSpeclion and copying, at such reasonable limes and places as may be deslgnaled by any authorized representative oIlhe Company, all records, books, ledgers, checks, corre- spondence and memoranda, whether bearing a dale before or after Date 01 Policy, which reasonably pertain 10 the loss or damage, Further, II requested by any authorized represente- live of lhe Company, lhe insured claimanl shall gram its parmission, In wrillng, for any authorized represenlBlive oIlhe Company 10 examine, inspecl and copy all records, books, ledgers, checks, correspondence and !11emoranda in lha cUslody or comrol 01 a lhlrd party, which reasonably pertain 10 lhe loss or damage, All Informalion designated as confidential by the Insured claimem provided to the Company pursuant to this Seellon shall not be disclosed 10 others unless, In the reasonable judgmem olthe Company, It Is necessary In the administra- tion olthe claim, Failure oltha insured claimanllo submil for examination under oath, produce other reasonably requested Infonnalion or gram permission 10 secure reasonably necessary informalion from lhird perties as required in lhls paragraph shalllerminate any liability 01 the Company under lhls policy as 10 that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under lhis policy, the Company shall have lhe following addilional options: (a) To Payor Teniler Paymem oIlhe Amoum 01 Insurance, To payor lender paymem 01 the amount 01 Insurance under this policy,logether with any costs, attornays' fees and expenses incurred by the insured claimanl, which were authorized by lhe Company, up 10 lhe tima 01 paymem or lender 01 paymem and which lhe Company Is obligaled 10 pay, Upon lhe exarclse by lhe Company of lhls option, all liability and obligallons 10 lhe insured under lhls policy, other lhan 10 make lhe paymem required, shalllerminale, including any liability or obligation 10 defend, prosecule, or conllnue any Iillgalion, and lhe policy shall be surrendered to the Company for cancellalion, (b) To Payor Otherwise Seltle Wilh Parties Other lhan lhe Insured or Wilh lhe Insured Claimant (i) 10 pay or otherwise settle wilh other parties for or In lhename of an Insured claimam any claim Insured against under this policy, logelher wilh any costs, BI\orneys' fees and expenses incurred bylhe insured clalmanl, which were authorized by lhe CQmpany up 10 the lime of paymem and which lhe Company is obligated 10 pay; or (ii) 10 pay or otherwise senle with lhe insured claimanllhe loss or damage provided for under lhis policy, logelher wilh any costs, attorneys' lees and expenses incurred by lhe insured claimam, which were aulhorized bylhe Company up 10 lhe lime of paymem and which the Company is obligated 10 pay. Upon lhe exercise by the Company of eilher oIlhe options provided for in paragraphs (b)(i) or (ii), lhe Company's obllgalions 10 the insured under lhis policy for the claimed loss or damage, other lhan lrie paymenls required 10 be made, shalllenninate, including any liability or obligalion 10 defend, prosecute or continue any Iiligation. alleging a defecl, lien or encumbrance or other matter insured against by this policy, The Company shall havelhe rlghllO selecl counsel 01 its choice (subjecllO lhe right of lhe insured 10 objeel for reasonable cause) 10 represemlhe insured as to lhose stated causes 01 aelion and shall not be liable for and will not pay lhe fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by lhe insured In lhe defense oIlhose causes 01 action that allege mailers not insured against by lhls policy. (b) The Company shall have lhe right, at its own cost, 10 Inslilute and prosecule .any aellon or proceeding or 10 do any other aellhat in its opinion may be necessary or desirable 10 eslablish lhe litle 10 lhe estale or interest, as insured, or 10 prevenl or reduce loss or damage 10 lhe Insured. The Company may lake any appropriate action under lhe lenns of lhis policy, whelher or not It shall be liable hereunder, and shall nOl thereby concede liability or waive any provision olthis policy, lithe Company shall exercise Its rights under lhis paragraph, II shall do so diligemly. (c) Whenever lhe Company shall have brought an aclion or imerposed a defense as required or permined by the provisions oIlhls policy, lhe Company may pursue any Iillgalion 10 final determination by a court of competenljurisdiellon and expressly reserves lhe right, In its sole discretion, to appeal from any adverse judgmem or order, (d) In all cases where lhis policy permits or requires lhe Company 10 prosecule or provide for the defense of any aclion or proceeding, lhe insured shall secure 10 lhe Company the righllo so prosecule or provide defense in the action or proceeding, and all appeals therein, and pennillhe Company 10 use, at its option, the name olthe insured for this purpose. Whenaver requested by lhe Company, lhe insured, allhe Company's expense, shall givelhe Company all reasonable aid (i) In any aelion or proceeding, securing evidence, obleining wllnesses, prosecuting or defending lhe aelion or proceeding, or effecllng senlemem, and (ii) in any other lawful acllhal in lhe opinion 01 lhe Company may be necesSary or c!eslrable 10 establish lhe litle 10 lhe estate or interest as insured, If the Company is prejudiced bylhe feilure oIlhe insured 10 furnish the required cooperation, lhe Company's obligations 10 lhe insured under lhe policy shalllerminale, including any liability or obligation 10 defend, prosecute, or cominue any Iilillalion, wilh regard 10 lhe mBller or mBl\ers requiring such coope~alion. _. 'ill' . 81178-1 ~- 41( 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon wrinen requesl by the insured and subjecllO lhe oplions conleined in Seellon 6 of lhese Condilions and Slipulallons, the Company, at ilS own cost and wilhout unreasonable delay, shall provide for the defense of an insured in Iillgalion In which any lhird party asserts a claim adverse 10 lhe lille or imerest as Insured, bul only as 10 lhose stated causes 01 aelion '. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notily the Company promptly in writing (i) in case of any litigation as set forth in Seellon 4(a) below, or (ii) In case knowledge shall come to an Insured hereunder 01 any claim of lllle or Imeresllhal is adverse 10 lhe tille 10 the estale or Imerest, as Insured, and lhat mighl cause 1ol!5 or damage for which lhe Company may be liable by virtue oIlhls policy, If prompt notice shall not be given 10 lhe Company, lhen as 10 lhe insured all liability of lhe Company shall tenninale wllh regard 10 lhe mBller or maners for which prompt notice is required; provided, however, lhal fellure 10 notily lhe Company shall in no case prejudice lhe rights 01 any Insured under lhls policy unless lhe Company shall be prejudiced by lhe failure and lhen only 10 the ~em 01 the prejudice. When, after lhe date of lhe policy, the Insured notifies lhe Company as required herein of a lien, encumbrance, adverse claim or other defeelln lllle 10 the estale or inlerest in lhe land insured by lhis policy lhal is not excluded or excepted from lhe coverage 01 this policy, the Company shall promptly investigate the charge 10 delennine whelher lhe lien, encumbrance, adverse claim or defecl is valid and not barred by law or sletute, The Company shall notily lhe insured In wrillng, within a reasonable time, of its daterminalion as 10 lhe validity or invelldity 01 lhe insured's claim or charge under lhe policy, " lhe Company concludes lhatlhe lien, encumbrance, adverse claim or defecl is not covered by this policy, or was otherwise addressed in lhe closing oflhe lranseelion in connection wilh which this policy was issued, lhe Company shall specifically advise lhe insured of the reasons for lis delermlnation. If lhe Company concludes lhatlhe lien, encumbrance, adverse claim or defeclls velid, lhe Compa- ny shallleke one oIlhe following aelions: (i) institule lhe necessary proceedings 10 clear lhe lien, encumbrance, adverse claim or defecl from lhe lille 10 lhe estale as Insured; (ii) indemnlly lhe Insured as provided in lhispolicy; (Iii) upon paymem of appropriate pramium and charges therefor, issue 10 the insured claimant or 10 a subsequenl owner, mortgagee or holder Of lhe estale or imerest in lhe land insured by lhis policy, a policy oIlllle insurance wilhout exception for lhe lien, encumbrance, adverse claim or delect, said policy 10 be in an amounl equal 10 lhe currenl velue of lhe property or, if a mortgagee policy, lhe amoum of lhe loan; (iv) Indemnlly another lllle insurance company In conneclion wilh its issuance of a policy(ies) 01 lllle Insurance without exception for the lien, encumbrance, adverse claim or defect; (v) secure a release or other documam discharging lhe lien, encumbrance, adverse claim or defecl; or (vi) undertake a combinalion of (i) lhrough (v) herein. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of lhis policy shall cominue in force as of Date of Policy in fevor of an insured only so long as lhe Insured relains an estale or Imeresl in the land, or holds an indebtedness secured by a purchase monay mortgage given by a purchaser from lhe insured, or only so long as the insured shall have liability by reason 01 covenams 01 warranly made by the insured in any lransfer or conveyance oIlhe estate or Imerest, This policy shall not continue In force in favor of any purchaser from the insured. of eilher (I) an estate or Inlerest in the land, or (ii) an indebtedness secured by a purchase monay mortgage given 10 lhe insured. 1. DEFINITION OF TERMS. The following lenns when used In lhls policy mean: (a) "insured": the insured named In Schedule A, and, subjecllO any rights or defenses lhe company would have had againsllhe named insured, lhose who succeed 10 lhe interesl 01 lhe named Insured by operation 01 law as dlatinguished from purchase Including, but not IImiled 10, heirs, distributees, devisees, survivors, personal representelives, next 01 kin, or corporate, partnership or fiduciary successors, and specifically, withoulllmllalion, the follow- ing: (i) lhe successors In Interesllo a corporallon resulllng from merger or consolida- tion or the distribution of lhe assels of lhe corporalion upon partial or complele Iiquidalion; (ii) the partnership successors in Imerest 10 a general or limlled partnership which dissolves but does not lerminale; Pli) lhe successors in Imerest 10 a general or limited partnership rasulling from lhe dlslribullon 01 the assets of lhe general or limited partnership upon partial or complele Ilquidallon; . (iv) lhe successors in interest 10 a joint vemure resuhlng from lhe distribution oIlhe assets oIlhe -jolnl vemure upon partial or complele liquidation; (v) lhe successor or substilule lrustee(s) of a lrustee named in a wrinen lrusl inslrumem; or (vi) lhe successors in imeresllo a lruslee or lrusl resuhing from lhe distribution 01 all or part oIlhe assets oIlhe trust 10 the beneficiaries lhereof. . (b) "Insured claimant": an insured claiming loss or damage. (c) "knowledge" or "known": aclual knowledge, not conslructive knowledge or notice lhat may be imputed 10 an Insured by reason of lhe public records as defined In lhls policy or any other records which impart construelive notice 01 matters affeellng lhe land, (d) "land": the land described or referred 10 In Schedule A, and Improvements affixed lhereto lhal by law conslilute real property, The tenn "land" does not include any property beyond the lines 01 lhe area described or referred 10 In Schedule A, nor any righi, lille, Imerest, estale or easement in abunlng streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shail modily or IImll the extemlO which a right of access 10 and from lhe land is insured by this policy. (e) "mortgage": mortgage, deed of lrust, lrust deed, or other security Inslrumem, (I) "public records": records established under slale stalutes al Date of Policy for lhe purpose 01 imparting conslruelive notice 01 mBl\ers relating 10 real property 10 purchasers for value and wllhoul knowledge. Wilh respecllO Section 1 (a)(iv) of lhe Exclusions From Cover- age, "public records" also shall include environmenlel protecllon liens filed In the records 01 lhe clerk 01 the United Slales district court for the district In which the land is localed. (g) "access": legal righl of access 10 lhe land and not the physical condilion 01 access, The coverage provided as 10 access does not assure lhe adequacy of access for the use inlended. CONDITIONS AND STIPULATIONS