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<br />CONDrnONs,ANptT.II'U.LATlONS. C~ntlnued
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<br />4, DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED CLAIMANT TO COOPERATE.
<br />lr~ Ir(i).' Upon:.iYrttten.request,by the insured and,subject to the options contained'in .Sec;lion 6 ol,th!lse Conditions and Stipulations, the Company; at Its own cost and without
<br />1 ,;. unre~sonabl", ~elay, shall provide. lor the. q~!ense of,an insured in Iitigatipn.in w~ic;h,!lny.third. party a~erts a claim advers.e to thet!tle or intl!r&st as insured, but only as to
<br />, tho~e',stated Causes OI'aciion alleging a c;leleCt, lien 0; enc;umbrance or ,other ma,tt~r insu~ igainst tiy'this' pOIii;Y, The Company shall have the right to select counsel 01 "'
<br />c~gi#. (s~,bJ.~'IO t~!l .ri~ht 01 the il1sured to. Obj~t ~or rea!lpn~ble ,cause): ici repr!i~ent, th.!" i,ns~red as to thOse I ~~ted ~uses 01 action and snail not be liable lor. and will not
<br />pay the le,es 01 .ny other counsel. The Co(f1pany will not pay, !lny 'l!es, costs or !l~penses Incurrec;l by the Insured In t,he delel1!le 01 those causes 01 action that allege
<br />,r\ili~rS not.ir\~ured ag~i'nsi'~y 1his ';x>licy,:";,.' :'. '.': " ',:, :.' , <:'~:' ','.:' . "-..' .', " . " , . ,
<br />(~ The. Com,p8.ny ,hall'h!!l!e';the right, a:,its.pw~ cost, .to insti~\l.te and pr!l~l!cutil, any action 'or proceilding or to qo al!~ other act)hat in its opinion may be necessary or
<br />, I d!lsirable,tq establ~W!he,title to tne estate ,or interest, as ins\lred, or to"prevent..!?r. redu~e'IOss or damage to the insured, The Company may take any app'ropriate action
<br />under the terins'olthispolicy, whether or not it shall be liable hereunder, and shall not"lhereby conc'ade'liabilily or waive any provision 01 this policy, lIthe Company shall
<br />2. p', 'exercise;its rights.underthis paragraph, it shall do so'diligently. '. . <;(', . " . .'" . I .'
<br />(c):' Whenever.the, Company. shall have brought an action or interposed a'defense as required or permitted by the provisions 01 this policy, the Company may pursue any
<br />J ,~"".!i'i9lltiOI! to ,li~..I, de~e.~i~a:i?n b~ II C?urt 91 cOI)"~pe,ent jurisdiction and e~pressly reserve~ the right, In its sole discretion',to appeallrom any a~rse judgment or order,
<br />(d), In !lll~'ca,s~~ whe~ ,t~l~ policy Perrnl~.Qr requlres,.l~e.Corm~~ny to prosecute or proVide lor the delense 01 any action or proceeding. the Insured shall secure to the
<br />:,., ~qmpany"t~a ,right to sO'plosecute' or prb~iae defense in the'iiction or, proceedjng, and all ap'peals therein, and permit the Company to use. at its option, the name 01 the
<br />ins.ui;ed lor.'!his purpose. Whenever requested by the COrl1pany: the insured, at the CompanY's expense, shall give the Company all reasonable aid (I) In any action or
<br />pr9~eding..securing 'e,~iden~e, obtai~ing. w.itnE!sses,:prosecuting or delending the action or proceeding, or ellecting settlement, and (i1) in any other lawful act that in the
<br />fe) oPi~ion oittie~COmpany matbe necessary'or desirable to establish the title to the estate or interest as insured. lithe Company is prejudiced by the lailure 01 the insured to
<br />:~: I,i:ir~isii the reciuirec;l,r#'peraiiqi); the Company's Q.~ligations.iq t,he il!suredunder .the policY shall terminate. i~clljding any liability or obliil~tion to delend. prosecute. or
<br />. continue any litigition, Yiith i'egarino the matter or matters requinng such eoop!i'ration, ' " . . , ..., . .
<br />5,' PROi)FOFLOSS:ORDAMAGE: .." ",'", ':c::" .': t. .. ",': .Jt.'-~. '.
<br />~ In addition io' and' alter ihe notices required under Section .3 01 these' Conditions .al1ctStipulationshave been provided the Company, a prool 01 loss or da.mage signa<! and sworn
<br />to. by the ;insured;claimanl: shall be lumished.to. the .Company-wRhin .91. days alle.r the: ins~red claimant shall ascertain the lacts giving rise .to the lOsS or darl1age. The proof 01
<br />loss or:damage shal) describe the delect in, or,lien or, encumbrance. on the,title, or other matter insured against by this policy that constitutes the basis 01 loss or damage and
<br />shall:Stat~,to.the,extent possible, the basis 01 calcUlating'ihe amount oUheJoss or <!amage; Ilthe'Company is prejudiced by.the lailure 01 lIJe insured claimant to provide the
<br />, ';-'\\jreqUired proof'OIloss or damage,. the Company's obligations to the insured under,the policy shall,terminate; including any liability or obligation to delend, prosecute. or continue
<br />'. ~~..... . any.IRigl!tion, .with,regard.tot!1e matter or matters requiring such prool.ollOss or damage,. '...~ 'I I ,.",. . " ;,r.'.'
<br />\ \ '.In addilicllJ:.tl).e insured c1~il1Ja/)t may reasol!ably be J~qui(ed to submit to exarT1ination. under oath by any authorized representativa. 01 the Company and shall produce for
<br />. . -"l!.x,ain\naJjolJ, 'insPJlc:tion an~ <;QpYing, at s~h rea.son!lble time!l.!!nd pjaces a!l.,mllY be dllsignaled by any .autho(iZed rep~sen.tive (lIth!! Comp'!II1Y, all records. books, ledgers,
<br />, checks, correspondence and memoranda, whether bearing a <!ate b~I()f!l or alter Date .01.Policy, which reasonably pertain to the lo~ or damage, Further, II requested by any
<br />~'r==-authoriZedi'ilpreSer,tathie:oIthe Company, the.insured claimant'shan:grant.itspermisslon;in writing, lor any authorized repreSentative 01 the Company.to examine. inspect and
<br />.Ii f-'-COpy lill)eCOrdS,"books,"lildilers, 'checks; cO"esiio,nden~ an(rri1e!llorandi~inthe custody or contiol 01 a .third party, Yihich reasonably pertilin to the loss or dimage. All
<br />,-;!// J information designated as confidential by the insured claimant proll.idl!d .10 th!!, qom~ny. pU,rs!!!1nt .to. this Section shall not be disclOs~d to others unless. in the reasonable
<br />- _,/ judgment 01 the Company; it is necessary in'the administration 'onhe"l:laiilt~IFaililfljolthe'inliui'ed claimant to submR lor examination under oath, produce other reasonably
<br />"requested'inlormation 'or grant permiesion to secure reasonably necessary inlormation Irom third parties as required in this paragraph shallterminata any liability 01 the
<br />1Company. under this. policy as .to that claim, .' .',
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<br />6. (OPTIONS to PAY'OR OTHERWlsiisEmE CLAiMS;'TERMiNAtION OF'LIABltliY." .... ....-;
<br />In ca~9i a cia!m'.~nder!hi~ policy, t~e :Cor!ipany shaU~ave the 'ioil9wing '~<!d(~!onal:op.tions,: '. .~:: . '. "
<br />(a) '-,To Payor Tender Payment oflhe Amounl of Insurance, " .' ,>t'.. .". , . , . , . , ,
<br />To pay 6~ t~~~er'piiynient olthEi amount of insurance linder this 'policY, together wiih iiriy 'Costs, . attomeys' leils and expenses incurred by the insured claimant, 'which were
<br />authorized by the 'COmpany, up to the,time of payme~t or lender ql payment ~~d ~hich tl]e Company is obligated to pay, .
<br />Upon'.ihe~exe~ise'tiy the ComPllny oIth,is option, !I"lia~iIi!y and:obliglitions t!l.the'!nsu~d'ul1de,r t~is POliCy, other tha!\.to !1lake,the payment required, shall terminate.
<br />includiriilanyliabilityor obligation to delend, prosecute. or Continue any litigalion, a!1d tile pcilicy shall be surrendered to the COmpany lor cancellation, . '
<br />(b) To P~y or ,Otherwise Sett!e With Parties Other lhe,! the l!1eu!ed or With the Insured Claimant. ., .... .
<br />(i) .to'pay or otherwise seitle with other parties lofor In'the name of an ir,sured claimant any cliim insured against under this policy, together with any costs, attorneys'
<br />.' ~ !ees a~lf expehses incurred by.th'a insured. ciaimant,' w.lii~h were atiitioriz8cl tiytj;~'CO!llpany up to the time 01 paym~nt and which the COl!lpa~y is obligated to pay; or
<br />b\ ,(~}1t~:P.~y.~t9therwi~e's,ettle. v.:ith ~he irlsured~lairn~litthel6Ssof da'mage'p~vided lor under this pci.licy, together with, any'~sts; attorneys' lees and expenses incurred
<br />I.: .' ,_UI Wtha Ins!Jred claimant. whICh were !Iuth9f1ztldby !he Company u~ to the ,llm~ o! payment and which Jhe Company IS obligated to pay, .
<br />(Upon"the exerci~e'llY the Company 01 either 01 the options piovided for in jia'rigraphs (ti)(i) or (ii), the Company's obligations to the insured under this policy lor the claimed loss
<br />(Sf d~m,,-~e,:O\h~{.f~an th\lpay~~~.is: ieq~ir~ t~ ~. i11llde" shah.te~J,~,~,iei!~Cludi!1~ ~~r ,~~~i1ily ~l ?bligation to ,~~!e~~, prosecute or continue any litigation.
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<br />7. DETERMINATION; EXTENT OF LIABILITY AND COINSURANCE. . . "J' c', ' I. ,
<br />This policy'is a.c6niraCt'ol indemnity against aciual monetary Ioss'or damage'sustained.or. incurred by the insured Claimant-who has suffered lOsS or damage by reason 01
<br />matteis'insui'ed agiinst by.thispolicy and only tq the extent herein described, :, r'
<br />(a) The:liability 01 the COmpany under this policy shall not exceed the leasl'ol: ';.: ,~, '. < ..',' , l ...",
<br />: '(i)~ the Amount of Insurance stated in Schedule A:. . ,f.;., . ' , . ;. ,
<br />,I (ii).~the:difference between the value,olthe insured1eslate Or,interest as'insured and ,the value 01 the insured estate or interest. subject to the delect, lien or encumbrance
<br />i~: ',..':e.insurea against'bY;,this pcilicy at the' date IheinsuredfClairnant is 'requiredcto. lurnishto Company'a prOOl 01' loss or'damage'in accordance wRh Section 5 01 these
<br />, '..:, :Cond~ions and Stipulations, '
<br />(b)'N1n ~~vent.\he Amount o~ Insurance stated\in ~hl!dule.A.allh!l Date 01 Policy is less than 80 percent 01 the value clthe insured estate or interest or the lull consideration
<br />.;:~: I .' l~riQ: whi~hever is less; or il s~~s.eciue~i ,to !tie bate,61 Policy.an imp,rq"ement.!s"erec;ted on. f!1e land w.hich increases the yalue 91 the insured estate 9r interest
<br />.rr;'.U ' . :p"'e,rCento~rthe~mountol!nsurani;e.~t~in~~~~le~"\henthisPol,iCyissubjecllottieJ'i?II~ing: .:.. " " .
<br />., ~'. .p' ",ym.e(e 110. sUb,s\lqu~l1t,improver:nent. has been ~ade, a.~ to~any p~rtl~! !()!ls,.lh!l"Compapy.shall only ~!lY th~ 10s~ pro rata ',n th'1; proportlO~ that the. amount 01 Insurance
<br />,n ,.stat. il.atD~t,e<o!.Policy.bears to th,~.t~~I.value,olt~el~s~re.die.s~t,e,19rr,',Q~~I'lls,\ at p~te C?P:~oIl,CY; or ,.'.:' . .' "
<br />(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 01 the
<br />3. ;;:;,-;I~;:': (JAmoun\.oi Insurance stated iri Schedule A bears iothe S'Jm 01 the Amount 01 Insurance stated in Schedule A and the amount expended lor the improvement.
<br />TIie provisioriS 61 this paragraph. shall not apply to'costs: attorneys' lees'and eiipenses,lrir which ttie.Company is liable under this policy, ana shall only apply to that portion 01 any
<br />lOss'Which'exceeas,Qn;the'aggregate;'10 percerlf'olthe Amount ol.lnsurance stated inSchedule.A!I,.. . c' ~. . ,Y'" '. .. _ ' ., i . ,:' ,...
<br />(e)' ,.:rtie'Com'Pany'will pay only thcse'costs; attorheys':ees'and'eiipenses'incurred inl8cco'rdance with Section 4 of these Conditibns and Stipulations.
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<br />8. ~~~~R.tt~;~Nf,::,:_~..~...~....a; . '. 'r~':i .::..;,....::..:. .~.~I~lli). " r: '.;. I ~.;--. .: ,I'. ~. '.
<br />IIt~!~no; p'ii.!lc(ib~~.!9 $che!!ule A ,cons,i~t~ ?f!Vio or,!"oreparqels. -',hat are ,~~\ psed as a singl~ site" and a lOs,S .is est~blish~ ~ffecting one, or more 01 the p~rcels but not all, the
<br />19,1!!l.s,I'i~I!.-!!.B. C9,mpu.ted ~'ld:~el1l~d on)l pro rata}asls Blj~I,!~e arnqunl ollns.urancl!.~n~e~.'hls.poll~ ~as.dlvl~ec;l pro rata,a~,to the, v~II,le on Date 01 Policy 01 each separate
<br />tl'i.e. who!~,. e~clus.iye 01 any Improvements mad!! ,!lubseque!1lto Date 01 Pollqy"u!1less a lIabll!ty or val~e has,otherwl~ebeen agrl1ed upon as to each parcel by the
<br />. ." , the:insllfec(attlie time'olthe issuai1ceonhis,pq!iCv.';ari~'shoivn ~y an expjess' statement or by ,al) endo~ement 'atiached to this poljCy.. .
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<br />9. I.:IMITATlON:OFLlABILln~ "', ,:~r. .C',. "., g, . ,,; ..., ,.J.
<br />(ajlsI1I1tlili:Compahy'establishes the'title; or'removes.the allegeo delect,lien or'encumbrance, or cures the lack ol-a right 01. access to orlrom the land, all as insured; or takes
<br />~~:"aCtior.'iritaccoidl!ncilw[th'Section 3 or Sei:lion 6, ina reasonably'diligent manneNiy any,method, including litigation and the completion 01 any appeals therelrom, it shall
<br />';lO" ::ha\ie lully perfofriiilO itS obligations wiih respecllo that.matier and shall.notbflliabJe lor any loss or damage caused.thereby, ,...,. f" . ,
<br />(b) .Iii:ihe"'event 01 any.litigation, including iitigation bY the'Company or with ths',Company's consent. the Company shall have no liability lor lOsS or damage until there has been
<br />.all,fa'linatrdetermmlilion bya"court.ol.competenfjurisdiClion, and disposition ofoiill'fippeals .therelrom, adverse'to the title as insured: I'.,;, . , , " .
<br />icp.liflfe"Ci:impa~y:shall nilt be liable lor lossordamage to'any insured lor liability voluntarily assumed by the insured in settling'any claim or suit withoutthe'prior written consent
<br />da"'~~ol tlie'Compan}.:'. ' ... ,'. ,. " .
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<br />10: REDUCTION 0" INSURANCE: REDUCTION OR TERMINATION OF LIABILITY. ,
<br />:...~ All payments under this P~Ii~: ,excePt p~yments made for costs, attorney~' lees and expense~, shall reduce the amo!lnt 01 the insurance pro tanto,
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<br />,_'.._'.. ._.,., ,', _... .. _ 'n,. . ___ ..(Continued on Reverse Side 01 !'age) , . .. .. . ..._..
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