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<br />..- CONDITIONS AND STIPULATIONS Continued a
<br />tinued and concluded from reverse side of Policy Fa.
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<br />records, books, ledgers, checks, correspondence ond memoranda in the 'custody
<br />or control of a third party, which reasonably pertain to the loss or damage, All
<br />information designated as confidential by the insured claimant provided to the
<br />Company pursuant to this Section shall not be disclosed to others unless, in the
<br />reasonable judgment of the Company, it is necessary in the administration. of the
<br />claim, Failure of the insured claimant to submit for examination under oath, pro-
<br />duce other reasonably requested information or grant permission to secure rea-
<br />sonably necessary information from third parties as required in this paragraph
<br />shall terminate any liability of the Company under this policy as to that claim,
<br />6, OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS;
<br />TERMINATION OF LIABILITY.
<br />In case of a claim under this policy, the Company shall have the following
<br />additional options:
<br />(a) To Payor Tender Payment of the Amount of Insurance.
<br />To payor tender payment of the amount of insurance under this policy
<br />together with any costs, attorneys' fees and expenses incurred by the insured
<br />claimant, which were authorized by the Company, up to the time of payment or
<br />tender of payment and which the Company is obligated to pay,
<br />Upon the exercise by.the Company of this option, all liability and obligations
<br />to the insured under this policy, other than to make the payment required, shall
<br />terminate, including any liability or obligation to defend, prosecute, or continue
<br />any litigation, and the policy shall be surrendered to the Company for
<br />cancellation,
<br />(b) To Payor Otherwise Settle With Parties Other than the Insured or
<br />With the Insured Claimant.
<br />(i) to payor otherwise settle with other parties for or in the name of an
<br />insured claimant any claim insured against under this policy, together with any
<br />costs, attorneys' fees and expenses incurred by the insured claimant, which were
<br />authorized by the Company up to the time of payment and which the Company
<br />is obligated to pay; or
<br />(ii) to payor otherwise settle with the insured- claimant the loss or dam-
<br />age provioed for under this policy, together with any costs, attorneys' fees and
<br />expenses incurred by the insured claimant, which were authorized by the Com-
<br />pany up to the time of payment and which the Company is obligated to pay,
<br />Upon the exercise by the Company of either of the options provided for in
<br />paragraphs Ib)(i) or (ii), the Company's obligations to the insured under this pol-
<br />icy for the c aimed loss or damage, other than the payments required to be
<br />made, shall terminate, including any liability or obligation to defend, prosecute
<br />or continue any litigation,
<br />7, DETERMINATION, EXTENT OF LIABILITY, AND COINSURANCE.
<br />This policy is a contract of indemnity against actual monetary loss or dam-
<br />age sustained or incurred by the insured claimant who has suffered loss or dam-
<br />age by reason of matters insured against by this policy and only to the extent
<br />herein described,
<br />(a) The liability of the Company under this policy shall not exceed the least
<br />of:
<br />(i) the Amount of Insurance stated in Schedule A; or
<br />(ii) the difference between the value of the insured estate or interest as
<br />insured and the value of the insured estate or interest subject to the defect, lien
<br />or encumbrance insured against by this policy at the date the insured claimant is
<br />required to furnish to Company a proof of loss or damage in accordance with
<br />Section 5 of these Conditions and Stipulations, .
<br />(b) In the event the Amount of Insurance stated in Schedule A at the Date of
<br />Policy is less than 80 percent of the value of the insured estate or interest or the
<br />full consideration paid for the land, whichever is less, or if subsequent to the Date
<br />of Policy an improvement is erected on the land which increases the value of the
<br />insured estate or interest by at least 20 percent over the Amount of Insurance
<br />stated in Schedule A, then this Policy is subject to the following:
<br />(i) where no subsequent improvement has been made, as to any par-
<br />tialloss, the Company shall only pay the loss pro rata in the proportion that the
<br />amount of insurance at Date of Policy bears to the total value of the insured
<br />estate or interest at Date of Policy; or
<br />(ii) where a subsequent improvement has been made, as to any partial
<br />loss, the Company shall only pay the loss pro rata in the proportion that 120
<br />percent of the Amount of Insurance stated in Schedule A bears to the sum of the
<br />Amount of Insurance stated in Schedule A and the amount expended for the
<br />improvement,
<br />The provisions of this paragraph shall not apply to costs, attorners' fees and
<br />expenses for which the Company is liable under this policy, and shal only apply
<br />to that portion of any loss which exceeds, in the aggregate, 10 percent of the
<br />Amount of Insurance stated in Schedule A,
<br />(c) The Company will pay only those costs, attorneys' fees and expenses
<br />incurred in accordance with Section 4 of these Conditions and Stipulations,
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<br />8, APPORTIONMENT.
<br />If the land described in Schedule A consists of two or more parcels that are
<br />not used as a single site, and a loss is established affecting one or more of the
<br />p'arcels but not all, the loss shall be computed and settled on a pro rata basis as
<br />If the amount of insurance under this policy was divided pro rata as to the value
<br />on Date of Policy of each separate parcel to the whole, exclusive of any
<br />improvements made subsequent to Date of Policy, unless a liability or value has
<br />otherwise been agreed upon as to each parcel by the Company and the insured
<br />at the time of the issuance of this policy and shown by an express statement or by
<br />an endorsement attached to this policy.
<br />9, LIMITATION OF LIABILITY.
<br />(a) If the Company establishes the title, or removes the alleged defect, lien
<br />or encumbrance, or cures the lack of a right of access to or from the land, all as
<br />insured, or takes action in accordance with Section 3 or Section 6, in a reasonably
<br />diligent manner by any method, including litigation and the completion of any
<br />appeals therefrom, it shall have fully performed its obligations with respect to
<br />that matter and shall not be liable for any loss or damage caused thereby,
<br />(b) In the event of any litigation, including litigation by the Company or with
<br />the Company's consent, the Company shall have no liability for loss or damage
<br />until there has been a final determination by a court of competent jurisdiction,
<br />and disposition of all appeals therefrom, adverse to the title as insured,
<br />(c) The Company shall not be liable for loss or damage to any insured for
<br />liability voluntarily. assumed by the insured in settling any claim or suit without the
<br />prior written consent of the Company,
<br />10, REDUCTION OF INSURANCE: REDUCTION OR TERMINATION
<br />OF LIABILITY. ,
<br />AII/ayments under this policy, except payments made for costs, attorneys'
<br />fees an expenses, shall reduce the amount of the insurance pro tanto.
<br />11, LIABILITY NONCUMULATIVE.
<br />It is expressly understood that the amount of insurance under this policy shall
<br />be reduced by any amount the Company may pay under any policy insuring a
<br />mortgage to which exception is taken in Schedule B or to which the insured has
<br />agreed, ass~med, or taken subject, or which is hereafter executed by an insured
<br />and which is a charge or lien on the estate or interest described or referred to in
<br />Schedule A, and the amount so paid shall be deemed a payment under this
<br />policy to the insured owner,
<br />12, PAYMENT OF LOSS.
<br />(a) No payment shall be made without producing this policy for endorse-
<br />ment o. the payment unless the policy has been lost or destroyed, in which case
<br />proof of loss or destruction shall be furnished to the satisfaction of the Company,
<br />(b) When liability and the extent of loss or damage has been definitely
<br />fixed in accordance with these Conditions and Stipulations, the loss or damage
<br />shall be payable within 30 days thereafter.
<br />13. SUBROGATION UPON PAYMENT OR SETTLEMENT.
<br />(a) The Company's Right of Subrogation.
<br />Whenever the Company shall have settled and paid a claim under this pol-
<br />icy, all right of subrogation shall vest in the Company unaffected by any act of
<br />the insured claimant.
<br />The Company shall be subrogated to and be entitled to all rights and reme-
<br />dies that the insured claimant would have had against any person or property
<br />in respect to the claim had this policy not been issued, If requested by the Com-
<br />pany, the insured claimant shall transfer to the Company all rights and remedies
<br />against any person or property necessary in order to perfect this right of subro-
<br />gation, The insured claimant shall permit the Company to sue, compromise or
<br />settle in the name of the insured claimant and to use the name of the insured
<br />claimant in any transaction or litigation involving these rights or remedies.
<br />If a payment on account of a claim does not fully cover the loss of the
<br />insured claimant, the Company shall be subrogated to these rights and remedies
<br />in the proportion that the Company's payment bears to the whole amount of
<br />the loss,
<br />If loss should result from any act of the insured claimant, as stated above,
<br />that act shall not void this policy, but the Company, in that event, shall be
<br />required to pay only that part of any losses insured against by this policy that
<br />shall exceed the amount, if any, lost to the Company by reason of the impair-
<br />ment by the insured claimant of the Company's right of subrogation,
<br />(b) The Company's Rights Against Non-insured Obligors.
<br />The Company's right of subrogation against non-insured obligors shall exist
<br />and shall include, without limitation, the rights of the insured to indemnities, gua-
<br />ranties, other policies of insurance or bonds, notwithstanding any terms or condi-
<br />tions contained in those instruments that provide for subrogation rights by rea-
<br />son of this policy,
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