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7. Determination, Extent of Nabgity and Coinsurance.
<br />This policy is a cantrect of indemnity against actual monetary loss or damage
<br />sustained or incurred by the Insured claimant who has suffered loss or damage by
<br />reason of matters insured against by this policy and only to the extent heroin described.
<br />lei The liability of the Company under this policy shag not exceed the least of:
<br />III the Amount of Insurance stated in Schedule A; or,
<br />(It) 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, ran or
<br />encumbrance insured against by this policy.
<br />(b) In the event the Amount of Insurance stated In Schedule A at the note of porcy
<br />Is less than 80 percent of the value of the insured estate or interest or the full
<br />consideration paid fur the land, whichever is less, or if subsequent to the Date of
<br />Policy an improvement is erected on the land which increases the value of the insured
<br />estate or interest by at least 20 percent over the Amount of Insurance stated In
<br />Schedule A, then this policy is subject to the following:
<br />III where no subsequent Improvement has been made, as to any partial loss,
<br />the Company shall only pay the loss pro rate in the proportion that the amount of
<br />Insurance at Dole of Policy bears to the total value of the insured estate ormturest
<br />at Bate of Percy; or
<br />III where a subsequent improvement has been made, as to any partial loss,
<br />the Company shag only pay the loss pro rata In the pmpartlon that 120 percent of the
<br />Amount of Insurance soled in Schedule A bears to the sum of the Amount of insurance
<br />stated in Schedule A and the amount expended for the Improvement.
<br />The provisions of this paragraph shall not apply to costs, attorneys' fees and
<br />expenses for which the Company Ls cable under this policy, and shall only apply to that
<br />portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance
<br />stated in Schedule A.
<br />Ic) The Company will pay only those costs, attorneys' fees and expenses incurred
<br />in accordance with Section 4 of these Conditions and Stipulations.
<br />8. Apportionment
<br />II the land described in Schedule A consists of two or more parcels which ere not
<br />used as a single site, and a loss is established affecting one or more of the percale but
<br />not all, the less shall he computed and settled on a pro rate basis as if the annaunt of
<br />insurance under this policy was divided pro rata as to the value an Date of Poky of
<br />each separate parcel to the whole, exclusive of tiny improvements made subsequent to Data
<br />of Policy, unless a liability or value has otherwise been agreed upon as to each parcel
<br />by the Company and the insured at the time of the Issuance of this poriicy and shown by
<br />an express statement or by an endorsement attached to this policy.
<br />9. Limitation of Liability.
<br />In) If the Company establishes the title, or removes the alleged defect, lien or
<br />encumbrance, or cures the lack of o right of access to or from the land, or cures the
<br />claim of unnsmkatabllty of file, all as insured, In a reasonably dmgenl manner by
<br />any method, Including litigation and the completion of any appeals theralrom, it shall
<br />have fury performed Its obrgatlans with respect to that matter and shall not be liable
<br />far any loss or damage caused thereby.
<br />lb) In the event of env litigation including litigation by the Company or with the
<br />Company's consent, the Company shall have no liability for loss or damage until there has
<br />been a final determination by a court of competent jurisdiction, and disposition of
<br />all appeals therefrom, adverse to the Ode as insured.
<br />(c) The Company shall not he liable for loss or damage to any Insured for liability
<br />voluntarily assumed by the Insured In settling any claim or suit without the prior
<br />written consent of the Company.
<br />10. Reduction of Insurance: Reduction or Termination of Liability.
<br />All payments under this policy, except payments made for casts, attameys' fees
<br />and expenses, shall reduce the amount of the insurance pro tonto.
<br />the amount of insurance under this party shall
<br />on reouceo oy any amount the Uumptiny, may pay under any policy Insuring a mortgage I
<br />which exception Is taken I) Schedule Bar to which the insured has agrand, assumed, or
<br />taken subject, or which is hereafter executed by an Insured and which is a charge or
<br />lien on the estate or Interest described or returned in in Schedule A, and the amount
<br />so paid shall be deemed a payment under [his puny to the insured owner.
<br />12. Payment of Loss.
<br />(ai No payment shah be made without producing this policy for andarsament of the
<br />payment unless the poky has been lost or destroyed, in which case proof of loss or
<br />destruction shall be furnished to the satisfaction of the Company.
<br />(h) When liability and the extent of lass all damage has been definitely fixed In
<br />accordance with these Conditions and Stipulations, the loss or damage shell be payable
<br />within 30 days thereafter.
<br />13. Subrogation Upon Payment of Settlement.
<br />KO of Riaht of Suhmaation.
<br />Whenever the Company shall have settled and paid a claim under this policy, all
<br />right of subrogadon shall vast in the Company unaffected by any act of the insured
<br />cleinant.
<br />. Thu Campeny shall be submgated to and be entitled to all rights and remedies which
<br />the Insured claimant would have had against any person or property In respect to the
<br />claim had this policy not been issued, If requested by the Company, the insured
<br />claimant shag transfer to the Company all rights and remedies against any person or
<br />property necessary in order to perfect this tight of submgetfon. The insured claimant
<br />shag permit the Company to sue, compramise or settle in the name of the Insured
<br />claimant and to use the name of the insured claimant In any transaction or litlgadon
<br />involving these rights at remedies.
<br />If o payment on account of a claim does not fully cover the loss of the insured
<br />claimant, the Company shall be submgated to these rights and remedies in the
<br />proportion which the Company's payment bears to the whole amount of the fuss.
<br />If loss should result tram any act of the insured clamant, as stated above,
<br />that act shag not void this policy, but the Company, In that event, shalt be required
<br />to pay only that part of any losses Insured against by this policy which shag exceed
<br />the amount, If any, lost to the Company by reason of the Impolrment by the insured
<br />claimant of the Company's right of subrogotlan.
<br />Of The Company's Rights Against Non-insured Obraars.
<br />The Company's right of subrogation against non-insured obligors shag exist and
<br />shag Include, without imitation, the rights at the Insured to Indemnities, guaranties,
<br />other policies of Insurance or bonds, notwithstanding any terms or conditions contained
<br />in those instruments which provide for subrogation rights by reason of this parity.
<br />14. Arbitration.
<br />Unless prohibited by opprcable law, either the Company or the insured may demand
<br />arbitration pursuant to the Tide Insurance Arbitration Rules of the American
<br />Arbitration Association. Arbitrable matters may Include, but are not limled to, any
<br />controversy or clam between the Company and the Insured arising out of or relating to
<br />[his policy, any service of the Company In connection with Its issuance or Ilia breach
<br />of a policy provision or other obligation. All arbitrable matters when the Amount of
<br />Insurance of 91,000,000 or less shall he arbitrated at the option of either the Company
<br />or the Insured. All arbitrable matters when the Amount of Insurance is in excess of
<br />t1,009,ODO shall he arbitrated only when agreed to by both the Company and the insured.
<br />Arbitration pursuant to this party and under ilia Rules In effect on the date the demand
<br />for arbitration is made or, at the option of the insured, the Rules In affect at Date
<br />of Policy shag be binding upon the parties. The award may include attorneys' fees
<br />only if the laws of the state In which the land Is faceted permit a court to award
<br />attomey's fees to a prevailing party. Judgment upon the award rendered by the
<br />Arbitratorls) may be entered in any court hovfngjudsdfctfon thereof.
<br />The law of the shus of the land shall apply to an arbitration under the Title
<br />Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company
<br />upon request
<br />15. liability Limited to ibis Policy; Policy Entire Contract.
<br />(a) This policy together with all andorsemants, it any, attached hereto by the
<br />Company Is the entire policy and contract between the insured and the Company. In
<br />interpreting any provision of this policy, this policy shall be construed as a whole.
<br />lb) Any claim of loss or damage, whether or not based an negligence, and which
<br />arises out of the status of the tide tp the estate or interest covered hereby or by
<br />any action asserting such claim. shall be restricted to this policy.
<br />(c) No amendment e[ or andarsament to this policy can be made except by a writing
<br />endorsed hereon or attached hereto signed by either the President, a Vice President,
<br />the Secretary, an Assistant Secretary, or validating officer or authorized signatory
<br />of the Company.
<br />is hold Invalid or unenforceable under
<br />provisions shall rameln In fun force and effect.
<br />17. Notices, Where Sent.
<br />All notices requited to be given the Company and any statement In writing required
<br />to be furnished the Company shall include the number of this policy and shall be
<br />addressed to Its Home Office:4DO Second Avenue South, Minneapolis, Minnesota SE401,
<br />(612)371-1111.
<br />AO.ORT.3 Cover Page 3ofa
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