Like a title directive (an exemption policy), the indemnification agreement between insurers provides for exclusions from coverage and exceptions, as well as terms for payment of fees. An unwritten rule, like the countless unwritten rules of baseball that your sub-author can insist on, is the rejection of a credit policy as a previous guideline if that credit policy is less than a year old. This position is based on valid underwriting principles with the exception of a period of one year after a seizure or deed due to fraudulent transfer issues or concerns about legal action against the agent for the cancellation of the transaction. Check with your sub-author about credit policies used as ownership policies that are less than one year old. Note that First American did not execute the VMIT amendment that added the second group of underwriters. While First American did not veto the membership of any of the new members, as was possible under the VMIT terms, its decision not to execute the amendment means that each of the two groups that have a title error covered by a qualifying first American policy must receive, as in the past, a letter of compensation (LOI). The other three Big Four sub-authors participate in VMIT with the second group of underwriters. Note that Southern Title is not a part of VMIT. Whenever you have a directive from the South that would otherwise qualify for treatment under the agreement, you must find a statement of intent. An agent may start with Old Republic because he acquired some of Southern`s assets, but Old Republic is not required to claim compensation for Southern`s policy.
That is, at least as far as I know. In some circumstances, a credit policy can serve as a pre-police policy. First, the insured must have acquired ownership of the property by seizure or by deed instead of enforcement on the credit policy. Then, as above, the insured must be the current seller and the new buyer cannot be tied to a party in the transactions that creates the interest of the current seller (i.e. borrower, lender, etc.). There may be nuances when a credit policy is used as a pre-policy (e.g.B. Assignee of the lender as insured, REO company owned by enforcement, mortgage insurer or surety by purchase or assignment of an offer of seizure). Ask your sub-author about instructions in such uncertain situations. The « Big Four » in the title industry (the Fidelity National family, First American, Old Republic and Stewart) were the parts of the original (ALTA Model) Inter-underwriter Indemnification Agreement, which executed the instrument between mid-August and mid-September 2015.