1.80 Assignment of Owner Policy

1.80.1

In General

The owner’s policy of Title Insurance is not assignable.In this respect, the policy (7-1) defines an insured as follows:

 “Insured”: the Insured named in Schedule A

(i)       The term “Insured” also includes:

(A.)  Successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs, devisees, survivors, personal representatives or next of kin;

(B.)  Successors to an Insured by dissolution, merger, consolidation, distribution or reorganization;

(C.)  Successors to an Insured by its conversion to another kind of Entity;

(D.)  A grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title;

1.       If the stock, shares, memberships, or other equity interests of the grantee are wholly-owned by the name Insured,

2.       If the grantee wholly owns the name Insured,

3.       If the grantee is wholly-owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly-owned by the same person or Entity , or

4.       If the grantee is a trustee or beneficiary of a trust created by a written instrument established by the Insured named in Schedule A for estate planning purposes.

(ii)       With regard to (A), (B), (C) and (D) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured.

The T-IR Residential Owner’s Policy uses similar but plain language.

Endorsement form T-26 may be used to add additional named insureds in connection with estate planning or transfers to family owned entities. See P-57 and R-33 for rules and premium.