GA Checklist for Coverage Under the Mutual Indemnity Agreement

 

Georgia Checklist for Coverage Under the

Mutual Indemnity Agreement

 

File Number:

The Mutual Indemnity Agreement (MIA) covers a limited number of issues.  These include (1) prior open security deeds which are not equity lines; (2) defective execution of documents by a corporation; and (3) prior money judgments.  If your defect involves any other matter, the MIA will NOT apply.  If you have actual knowledge of an unsatisfied outstanding balance or current foreclosure and enforcement of item 1 or 3 above, then the MIA does not apply.

PART 1:

YES

NO

Do you have a copy of the current Owner's Title Policy?  (or in the case of a foreclosure or a deed in lieu, a Lender's Title Policy)? RETAIN FOR FILE.

Is the property located in Georgia?

Is the existing, prior policy older than one year?

Does the title defect predate the existing, prior policy?

Is the existing, prior policy silent about the defect?

Is the liability on the prior policy less than $1,000,000.00?


If the answer to ANY of the questions in Part 1 above is "NO", then the MIA does NOT apply
and you should contact your local Underwriter. 
If all of the answers in Part 1 are “Yes”, proceed with Part 2.


PART 2:

CORPORATE EXECUTION IS DEFECTIVE

YES

NO

Is the defect a lack of a corporate seal?

Is the defect a lack of corporate capacity?

THERE IS AN OPEN LOAN DEED

Is the open loan deed given by someone other than the insured?

Is the open loan deed NOT an equity line, assignment of rents and leases
or UCC-2?

Is the open loan deed for $500,000.00 or less?

 

THERE IS AN OPEN MONEY JUDGMENT OR STATE TAXES (EXCLUDING REAL ESTATE TAXES OR TAX FIFA)

Is the Defendant in the FIFA someone other than the insured?

Is the FIFA for $500,000.00 or less?


If all of the answers to the relevant questions in Part 2 above are "YES, the defect is indemnified automatically.  HOWEVER, these matters are covered only to the extent of the existing, prior policy amount or the amount of the open loan deed or judgment, whichever is less.

If the defect puts STEWART at risk for an amount which exceeds the existing, prior policy amount or the prior defect, Issuing Agents must obtain approval from an Underwriter. Please keep checklist in your file.

No guidelines are available for this form at this time.