Robert S. Carpenter - Steward Title Guaranty Company

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CONDITIONS'AND STIPUlATIONS Continued (mntinued Ilnd mnclud.!ld from reverse side of Policy Face) by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to athers 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 reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SmlE ClAIMS; TERMINATION OF LIABILITY. In case of a claim under this policy, the Company shall have the following additional options: (0) To Payor Tender Payment olthe Amount of Insurance. . To payor tender payment of the amount of insurance under this policy, together with any costs, anorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender 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 requited, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for mncellation. (b) To Payor Otherwise Senle With Parties Other than the Insured or With the Insured Claimant. (i) to payor otherwise senle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any, msts, anorneys' 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; or (ii) to payor otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, anorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company up to the time of payment and which the Com'pany is obligated to pay. . Upon the exerdse by the Company of either of the options provided for in . paragraphs (bUi) or (iil, the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall . terminate, including any liability or obligation to defend, prosecute or continue any litigation. ' 7. DffiRMINATION, EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity'against acWal monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of maners insured against by this policy and only to the extent herein described. . (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; . (in the difference between the value of the insured estate .or interest as insured and tile value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy at the date the insured claimant is required to furnish to Company a proof of loss or damage in aetordance with Section 5 of these Conditions and Stipulations. (b) . In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less. than BO percent of the value of the insured estate or interest or the full mnsideration paid for the land, whichever is less, or if subsequent"to the Date of Policy and improvement is erected on the land which increases the value of the' insured estate or interest by at least 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 been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the totol value of the insured estate or interest at Date'of Policy; or (ii) where a subsequent improvement has been made, as to. any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. . The provisions of this paragraph shall not apply to msts, anarner s 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 stated in Schedule A. (e) The Company will pay only. those costs, anorney's fees and expenses incurred in acmrdance with Section 4 of these Conditions and Stipulations. B. APPORTIONMENT. If the land described in Schedule A mnsists of two or more parcels that are not used as a single site, and a loss is established affecting one or more of the parcels but not all, the loss shall be mmputed and settled on a pro rata basis as if the amount of insurance under this policy was divided pra rata as to the value on Date of ' Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed 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 statement or by an endorsement anached to this policy. 9. LIMITATION OF LIABILITY. (a) If the Company establishes the title, or removes the alleged defect, lien or encumlJrance, or cures the lack of a right of access to or from the land, all as insured, or tokes action in accordance with Section 3 or Section 6, in a reasonably diligent manner by any method, including litigation and the mmpletion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage mused 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. determination by a murt of mmpetent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written mnsent of the Company. - - . 10. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF LIABILITY. All payments under this policy, except payments made for msts' attorneys' fees and expenses, shall reduce the amount of insurance pro tonto. 11. LIABILITY NONCUMULATIVE. It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. 12. PAYMENT OHOSS. (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which mse proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 13. . SUBROGATION UPON PAYMENT OR SETTlEMENT. (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act Of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies that the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessory in order to perfect this right of subrogation. The. insured claimant shall permit the Company to sue, mmpromise or senle in the name of- the insured claimant and to use the name of the insured claimant in 'any transaction or litigation involving these rights or remedies. If a payment on aetount of a claim does not fully mver the loss of the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of ihe insured claimant, as stated above, that act shall not void this policy, but the Company,in that event, shall be rlll\uired to pay only that fort of any losses insured against by this policy that shall exceed the ;,amount, i any, lost to the Company by reason of the. impairment by the insured .claimant of the Company's right of subrogation. (b) The Company's Rights Against Non-insured Obligors. The Company's right of subrogation against non-insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insura'nce or bonds, notwithstanding any terms or conditions contoined in those instruments that provide for subrogation rights by reason of this policy.