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' re'ains an eslale Or mlefCSl in Ine land. or holds blcd-
<br />ness SecweO by a purchase money morlgage~by a
<br />purchaser Irom Ine inswed. pr only so long as Ine msuretl shall
<br />nave liability Oy reason of covenants of warrant y made by the
<br />msuretl in any vansler or conveyance 01 Ine male or merest
<br />' fits pplrcy shall not continue in lone in savor of any purchaser
<br />Irom the insured of either (I) an eslale or mleresl in the land. or
<br />(i) an intleoledness secured by a purchase money mortgage
<br />given IO the rp SUreO.
<br />3. NOTICE OF CLAIM TO BE GIVER BY
<br />INSURED CLAIMANT.
<br />the msuretl shall ngllly the Company promptly m waling lit
<br />rn case of any IIIlgahon as set lorlh rn SecIIOn a la)below. (III In
<br />:aye knowledge shall came to an insured hereunder of any
<br />' =1aim of line or Ins erect which 15 adverse to Ine IIIIe to the
<br />eslale or interest, as msuretl, and which might cause loss pr
<br />damage for which the Company may be liable by venue of Ihis
<br />policy, or (uI) it title to Ine eslale or inlere5l, as Insured, is
<br />relecled as unmarkelahle Il prompt notice snail not he given to
<br />' the Company, then as to the Insured all Sabilily of the Com-
<br />panyshall terminate wnh regard to the master or mailers for
<br />which prompt notice is required; prowtled, however, that
<br />lailure to notity the Company shall in no case preludice the
<br />rights of any insured antler Ihis policy unless the Company
<br />shall be preludice0 by the lailure and then only to Ine exlenl of
<br />the prejudice.
<br />d. DEFENSE AND PflOSECUTION OF ACTIONS:
<br />DUTY OF INSURED CLAIMANT TO COOPERATE.
<br />' (a) Upon vrtnten request bV the insured and subiecl to
<br />the options eonlainetl in $ecllon 6 of Inese Conditions and
<br />$IipuIdl10ns, the Company, al 115 own cost and v+IihOUI unfed-
<br />sonzbledelay, shall provide for the tlelense of an insured in
<br />idigalion in which any Third Dany asserts a claim adverse to
<br />;he Idle or interest as inSmeQ but only as to (nose slated
<br />gausesol action alleging adelecl.lienor encumbrance orolher
<br />mailer insured against by Ihis pphcy. the Company Shall have
<br />the nghl l0 SClecl Counsel of ds Choice 15v01ecl to the nghi of
<br />the insured to oble[I for reasonable cause) to leer e5enl Ine
<br />insured as to Those stated causes dl action and snarl not be
<br />' liable for and will not pay Ise lees of day other counsel. The
<br />Company will not Day any lees, costs or expenses incunetl by
<br />die insured in the tlelense of Those causes of action which
<br />allege mailers not insured against by Ihis policy.
<br />(b) The Company shall have the right acts own cost to
<br />~nslitule and prosecute any action or proceeding Or to do any
<br />other act whrchln 115 opinion may be necessary or Desirable lp
<br />'.SlabliSh the Ulle Io the eslale or mi crest. as msme4 or l0 pre
<br />+ent or reduce loss or damage m Ine insured. The Company
<br />nay lake any aDpropnale action under the terms of this policy.
<br />whether or not it Shall De liable hereunder, and Shall not
<br />' (hereby concede liahilily or waive any provision pf Ihis policy.
<br />II the Company shall exerase ITS rights under Ihis paragraph,
<br />rl snzll da so all igenlly
<br />(c) Whenever the Company shall nave hmughl an
<br />action or interposed a tlelense as repaired or permilictl by the
<br />' ]revisions of Ihis policy, the Company may pursue any Ilbga-
<br />:ion ID linal delerminalipn by a court of compelenl luristl¢Ilpn
<br />and expressly reserves the right, in II5 sole tlis[relron, to
<br />appeal Irom any adverse judgment Or order.
<br />(d) In alicases wllefe lh15 policy permits or regwr¢5 ine
<br />Company Ip prosecute or provide for Ine tlelense of any action
<br />' )r proceeding, the insured snail secure 10 the Company the
<br />~Ighl to so prosecute or provide tlelense In the action or pro
<br />:ceding. and all appeals Iher¢In, and permit the Company to
<br />rse, at its option, NQ name of the msuretl for Ihis purpp5e.
<br />Whenever repuesletl by Ine CpmDa ny, Ine insured. al the Com~
<br />pony's expense, shall give the Company all reasonable aid (il
<br />many action or proceeding, 5ecur mg evidence, obtaining wrl-
<br />etlecling settlement. and OQ in any other lavdul all r: NCh in
<br />'he o0imon of IhC Company may be necCSSary pr Oeslrabie to
<br />' eslabllsh the IrI IC 10 ine eslale or Iniprest as Insured. II Ine
<br />.ompany is Dreludiceo by the lailure of Ine in5ure01o tarnish
<br />.rte fepuued COpperdiioli, the Company's Obligations to the
<br />~n5ure0 antler the policy shall Ierminale, including any liability
<br />a ohllgabon to defend. pmsecme. or continue any Imgalion,
<br />with regard to the mailer a mailers regmring'such [ooperall0n
<br />' i. PRDOF OF LOSS OR DAMAGE.
<br />In addillon ID and alter the notices requued antler Section 3
<br />]I these Conditions and Stipulations have been pmvitletl the
<br />Company, a Drool of Ipss or Damage signed and sworn to Gy Ine
<br />' nSmed cldimdnl shall be lurll6netl to ine Company vwlhin 90
<br />]ays al Ter the insw etl clarmanl snail a5cerlain Ine la[IS giving
<br />l5C 1o the TOSS or damage The pl001 OI Ipss pf damage shall
<br />]e5cfihe the tlelecl in, or lien or encumhmnce on the IIIIC. Or
<br />' alhel mallet insureo against by Ihis policy v: hich [onslrlulCS
<br />and CGIIgdbOns 10Ine msuretl under mss policy, UI hC 10
<br />make the payment reomred. shall Ierminale, inClu ny
<br />IiahJny or o611galion IO delend. prosecute, or convnuc any
<br />Illigallon, and the policy shall be surrenoered to Ine Company
<br />lOr canceaalion ~
<br />(b) To Pay or Olhervrise Sellle Willi Parties Olner roan
<br />the Insured pr Wllh the Insured Claimant
<br />(il to pay or oihervn5e settle with other parries for or
<br />in the name 01 an insufed Cldlmdni any Claim Insufetl against
<br />under Ihis policy, together vrilh any costs, allorneys' lees and
<br />expenses incurred by the insured claimant wh¢h were
<br />authorized by the Company uD ID Ine time of paymem znd
<br />which the Company is obligated to pay; or
<br />(ril to pay or Olherwi5e s¢Iile vnlh the insured Claim
<br />am the loss or tlamage provided Ipr under Ihis policy, logelher
<br />wile any costs. allorneys fees and expenses mcuuetl by the
<br />insured clarmanl winch were authorzed by the Company up io
<br />(ne lime of payment and which Ine Company is obbgatetl
<br />to Day.
<br />UDOn the exercise by the Company of either of the o0lions
<br />provided for rn paragraphs (ti)ts) or (rrT, Ine Company's obli-
<br />gallons tothe insured under Ihis policy far the claimed 1055 or
<br />damage, other than the payments required to be made, shall
<br />terminate, including any liability or obligation to delen0, pros-
<br />ecute or continue any Iiligali0n
<br />7. DETERMINATION, EXTENT OF LIABILITI'
<br />ANO COINSURANCE.
<br />This policy is a contract of indemnity against actual
<br />monetary loss or tlamage sustained or Incurred by the msuretl
<br />claimant who has sullere0loss or tlamage by reaspn of mzl~
<br />lets insured against by this policy and only to the exlenl herein
<br />descnbetl.
<br />(al The liability of the Company under Ihis policy shall
<br />not exceed the least ol:
<br />(i) Ne Amoum of Insurance Slated in Schedule A.Or,
<br />(Ii) the dillerence between Ine value of the insured
<br />eslale or interest as insured and the value of the insured
<br />eslale or inlerem SubjeU ID Ine tlelecl, lien or encumbrance
<br />insured against by Ihis policy.
<br />(b) In the evCnl the Amount of Insurance SPoled in
<br />Schedule A al the Dale of Policy 15less Than 80 percent of the
<br />value of ine insured eslale or interest or the lull [onsideralion
<br />paid for Ine land. whichever is less, or it subsequent to Ine Dale
<br />o: Polity an rmprovemenl is erected on Ine land which Im
<br />creases the value of the insured estate or interest by al leas)
<br />20 percent over the Amount of Insurance slat ed in Schedule A
<br />then Ihis Policy is subject to the lallowing:
<br />(i) where rip suh5equenl impmvemenl has been
<br />made. as to any partial loss, the Company shall only pay the
<br />loss pro rata in the proportion that the amount of Insurance al
<br />Dale of Policy bears to the total value of the Insureo eslale or
<br />mleresl al Dale of Policy; or (iQ where a subsequem
<br />improvement has been made, as to any partial loss, the Com-
<br />panyshall only pay the loss Oro rata in the proportion Thal 120
<br />Oelcenl of the Amount of Insurance staled in Schedule A bears
<br />ID the sum of the Amount of Insurance staled in $[hedule A and
<br />the amnunl expended for the Improvement
<br />The provisions of Ihis paragraph shall not apply to costs,
<br />allorneys' lees and expenses for which the Company 1s IlaDle
<br />antler Ihis policy, and shall only ap01Y to Thal portion of any
<br />loss which exceeds, in the aggregate, 10 percent of Ine
<br />Amount of Insurance Staled rn Schedule A
<br />(cl The Companywlll payonly lhosecosls. allorneys'lees
<br />and expenses incurred in accordance with Semion 4 0l Inese
<br />Contlni0g5 aria $IiDUd1i0n5.
<br />8. APPOPTIOHh1ENT.
<br />II the land descnbetl in ScheOUle IA)(C) consists of Iwo or
<br />more parcels which are not used as a single she, and a loss is
<br />eslabbshed allechng one or mole of Ine parcels but not all, the
<br />lass shall be computed and settled on a Dro rata basis as it the
<br />amnunl of insurance under Ihis policy was divided pro rasa as
<br />to the value on Dale of POiicy of each separate parcel to the
<br />whole, exclusive of any improvements made subsequent to
<br />Dale of Policy, unless a Iiabllily or value has olnerwise been
<br />aqr eetl upon as to each parcel by the Company and the insured
<br />al the time of the issuance of this policy and shown by an ex-
<br />press slalemenl or by an endpr5emenl allached to Ihis policy
<br />9. LIMITATION OF LIABILITY
<br />sal II the Company eslabh5hes ine title, or remove5lhe
<br />alleged tlelecl, lien or encumbrance, or cures the lack of a ngni
<br />of access to Or Irom the land, or cures the claim 01 unmarkel~
<br />aurllly pl Isle, all as inswed, in a reasonably diligent manner by
<br />any method, including liligalion and me [omplelion 01 any
<br />appeals Iherelrom, it shall have lolly perlOrmed Its Obligali0ns
<br />with respe[I Io Thal mallet and shall not be liahlC for any loss
<br />or tlamage ceased (hereby.
<br />iigm5 and rem Cdres which Ine insufed claimant w0u10 have
<br />had against any person or property In respect to the claim
<br />had Ines DOIILy not open Issued. II fequeSietl by the Dpm-
<br />pany, (lie insureo claimant shall Iran5ler to the Company all
<br />nghls and remedies against any person or properly
<br />necessary in order l0 Denecl this right of subrogation The
<br />insured claimant shall permit the Company to sue, com-
<br />promise or settle in Ine name of the insured claimant and Ip
<br />use the name of Ih¢ Insured claimant in any Iransatlion or
<br />Idigalion involving Inese rights or remedies
<br />II a payment on account of a claim does not Cully cover Ine
<br />loss of the insured claimant the Company snail De sub
<br />rogaled to Inese rights ono remeOles in the purport ton which
<br />Ine Company's payment Dears to the whale amnunl of
<br />the IDS$
<br />II IpSS should result Irom any act of the insured clarmanl,
<br />as stated above, Thal an shall not void uric policy, Dul Ine
<br />Company, In Inal event shall be required to Day only Inal
<br />part of any lasses insured against by this policy which shall
<br />exceed the amount it any, lost to the Company by reason or
<br />the Impairment by the insured claimant of the Company's
<br />fight of subrogation
<br />(b) The Company's Rlphts Against nan~lnsured
<br />DhligOrs.
<br />The Company's right of subrogation against nom
<br />insureo obligors shall exist and shall include, without Iimll a-
<br />Iion, the fights of the insured IO Indemnii ley, 9pdrdnlies,
<br />other policies of insurance or bands, no(wilhstanding any
<br />terms or conditions contained in IhoSe insirumenl5 which
<br />provide for subrogation rights by reason of Ihis policy.
<br />td. ARBITRATION
<br />Unless Drohibiled by applicable law, either Ine Company
<br />or the insured may demand arhrUdlion Dursuanl to the Tllle
<br />Inswante Arpilr alion Rules DI the American Arbitration
<br />Association Arbtlrable mallets may include, but are npl
<br />burned lo. any controversy or claim between Ne Company
<br />and Ine insured arising out of or relating to Ih15 policy, any
<br />service of Ine Company ,n connection wnh its issuance or
<br />the breach of a polity pioviSlon or other obligation. PII
<br />arOwahle masers when the Amount of Insurance Is
<br />51 000,000 or less shall lR arhilrated at the option of either
<br />the Company or the insured All arbitrable mailers when the
<br />Amoum of Insurance is m excess of 51 000.000 shall De
<br />arbllratetl only when agreed to by both the Company and 1 he
<br />Insured Arbilralion pursuant to Ihis policy and under (ne
<br />Rules in ellecl on the dale the demand for arbilrati0n r5 made
<br />or, al the option of the insured, the Rules in ellecl al Dale of
<br />Policy shall be binding upon the parties. The award may
<br />include attorneys' lees only it Ine laws of the slate in v+hich
<br />Ine land is lDCaletl perms aCOUfi to award attorneys lees l0
<br />a prevaJing pany Judgment upon the award rentleretl Dy the
<br />Arbmamr(5) may be entered In any coup having luris-
<br />dicbon lhereot.
<br />the lav+ol the Silas of Iheland Shall apPlY to an arbitration
<br />under Ine Tllle Insurance Arbilralion Rules
<br />A copy of the Rules may be obtained Irom the Company
<br />upon request
<br />15. LIABILITY LIMITED TO THIS POLICY;
<br />POLICY ENTIRE CONTRACT.
<br />(a) This pplicy logelher with all en0orsemenl5, it any,
<br />attached hereto by the Company is the entire policy ono con
<br />vacs between Ine insureo an0lhe Company. In inlerpreling
<br />any provision of tots policy, Ines policy shall De consV tied as
<br />a whole
<br />lb) Any claim of lass or damage, whether or not based
<br />on negligence, and which arises out of the status of me title
<br />to Ine eslale or Inleresl [o•+ered hereby Or Dy any action as-
<br />serting such claim, sha!I he reslricled to finis policy.
<br />(c) No amendment of or entlorsemenl to This policy
<br />can Oe made except by a writing enoorsetl hereon or
<br />allached hereto signed by either the Presroenl. a Vice Presr
<br />Beni, Ih¢ $e[reldfy, an ASSr51an1 Secretary, o! vdlitlabng
<br />olllcer or authorized signatory of the Company.
<br />16. SEVERABILITY
<br />In the event any prowslon of the policy Is held invalid or
<br />unenlorceable under applicable law, the policy Shall be
<br />Oeemetl n01 to include Thai prov6i0n and all ocher provisions
<br />shall remain in lull lone and ellecl.
<br />17. NOTICES, WHERE SENT.
<br />All novices re0uue0 to Oe given the Company and any
<br />slalemenl In r: sling requued to be IurniShetl the Company
<br />shall inmude Ine num0er of Ihis polity and shall be
<br />atltlr C55ed to the COmoany al 714 Ea51 Fllln $IIeCI, Santa
<br />Ana. Calllomia 92701. or to the olllce which sued Ihis
<br />pehcy.
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