Bulletin: FL000078

Dear Associates:

Underwriters are frequently asked by Title Agents for a Letter of Indemnification on a property which is the subject of a current transaction to be insured by a different Underwriter. Many of those Indemnification requests fall into certain categories which become routine in nature, primarily being homestead matters, Judgments not satisfied of record and Mortgages not satisfied of record. We have entered into Mutual Indemnification Agreement with most of the other larger Underwriters the purpose of which is to provide for an automatic Indemnification without seeking a formal letter under certain criteria. A list of the other Underwriters involved follows.

In order to determine that this program will be successful, we require that you obtain a written approval from us to proceed without an Indemnification. In making such a request, please forward to us the usual material needed for Indemnification, that is, the Commitment prepared for the current transaction, the previously issued Policy from the other Underwriter, and the instrument(s) in question. If the request meets the standards of the Mutual Indemnification Agreement you will be promptly notified in writing. If it does not, you will be promptly notified to obtain an Indemnification Letter before proceeding. This requirement may be modified or deleted if the Agreement proves successful.

If you have any further questions as to this Bulletin feel free to contact any of the Claim/Underwriting Counsel in Florida listed below:

Mark Johnson, Esq.(813) 876-0619
(813) 535-7842

Primary County responsibilities:

Escambia, Santa Rosa, Okaloosa, Walton, Holmes, Washington, By, Jackson, Calhoun, Gulf, Gadsden, Liberty, Franklin, Leon, Wakulla, Jefferson, Madison, Taylor, Hamilton, Suwannee, LaFayette, Dixie, Columbia, Baker, Union, Bradford, Gilchrist, Alachua, Levy, Marion, Citrus, Sumter, Hernando, Pasco, Hillsborough, Lake, Seminole, Orange, Pinellas.

Suzanne Zimmerman, Esq.(813) 876-0619
(800) 535-7842

Primary County responsibilities:

Nassau, Duval, St. Johns, Flagler, Clay, Putnam, Volusia, Brevard, Osceola, Polk, Manatee, Hardee, Sarasota, DeSoto, Charlotte, Lee, Highlands, Okeechobee, Indian River, St. Lucie, Martin, Palm Beach, Glades, Hendry, Collier.

Barry Scholnik, Esq.(561) 447-4323
(800) 759-1735

Primary County responsibilities:

Broward, Dade, Monroe.

The standards for using the Mutual Indemnification Agreement are as follows:

POTENTIAL DEFECTS:

I.Doubt as to whether the spouse of a prior grantor has a Homestead interest in the Land:

This shall mean that a deed in the chain of title to the Land does not contain either:

1. Joinder by the spouse of the grantor; or

2. A statement on the deed that the grantor is a single person; or

3. A statement on the deed or other recorded instrument that the Land conveyed by the deed is not the homestead of the grantor.

II.Doubt as to whether a recorded Judgment, Federal Tax Lien, or State Lien or Warrant constitutes an unsatisfied lien against the Land:

This shall mean a recorded judgment lien(s), from the face of which it appears that the principal is a sum certain, or recorded federal tax lien or state tax lien or warrant which may have attached to the Land prior to the date of the Indemnitor's Policy, (hereinafter the Lien(s)) provided:

1. The Lien(s) is not against the insured under the Indemnitor's Policy;

2. The date of the Lien(s) is at least one (1) year old;

3. The Lien(s) including interest to the date of reliance on this agreement does not exceed, in the aggregate, the sum of 20% of the Face Amount of Indemnitor's Policy or $50,000.00, whichever is less;

4;. No notice of any proceedings of levy to collect the Lien(s) appears of record;

5. The Lien is not a child support certificate of delinquency filed pursuant to F.S.61.14.

III.Doubt as to whether a recorded mortgage has been satisfied or released as a lien against the Land:

This shall mean a recorded mortgage(s) which appears of record prior to the date of Indemnitor's Policy provided:

1. There appears no foreclosure proceedings respecting the mortgage; and

2. The mortgage is not less than 5 years old and secures a principal amount of not more than $100,000.00; and

3. The mortgage does not appear, from the record, to secure a revolving credit or equity line of credit loan.

CONDITIONS:

The Indemnity provisions of this Mutual Indemnification Agreement are subject to the following conditions:

a. The agreement is only applicable to policies issued on Florida property.

b. The Indemnitee is not required to authenticate a policy of the Indemnitor that appears valid on it's face; however, if requested by the Indemnitor the Indemnitee shall be prepared to provide a copy of the policy on demand as a condition to making a claim under this Agreement.

c. The liability of the Indemnitor is limited to the face amount and the terms of the Indmenitor's policy or $250,00.00, whichever is less.

There are other conditions in the Agreement not relevant to this Bulletin.