FOR

Forfeitures

The Company’s guidelines for forfeitures are detailed because the Company considers subsequent insurance to be an extrahazardous risk.

Requirement

FORR01 STG

Civil Forfeiture

In connection with a Civil Forfeiture under 21 U.S.C. § 881, the Company requires for its review satisfactory evidence of the following:
a. The court issued an order for the warrant of arrest of the land;
b. The complaint requested forfeiture of the specific land and alleged specific bases for forfeiture;
c. All owners and lienholders (including spouses with marital or community property rights) of the land who are not executing deeds or releases received notice by personal service as evidenced by a review of the process receipt and return;
d. The government published notice of the proposed forfeiture in the federal district where the land is located (and the district where the proceeding occurs, if a different district);
e. An order authorized forfeiture of the specific land;
f. The order is final and nonappealable. Finality may be evidenced by a letter from the United States Attorney’s Office or other knowledgeable party;
g. The forfeiture occurred in the federal district where the land is located or in the district where criminal prosecution, if any, of the owner occurred;
h. If an owner of the land has been subject to criminal prosecution, that prosecution must be final and no longer subject to appeal;
I. Recordation of certified copies of the order for warrant of arrest, order of forfeiture and evidence of personal notice in the local real property records;
j. Verification by affidavit or inspection that no one is in possession of the land (except through the United States);
k. Disclosure in writing to the proposed insured that the forfeiture is in the chain of title;
At that time, the Company may make additional requirements or exceptions.
Comment: The Company’s guidelines for forfeitures are detailed because the Company considers subsequent insurance to be an extrahazardous risk.

See Underwriting Manual

FORR02 STG

Criminal Forfeiture

In connection with a Criminal Forfeitures under 21 U.S.C. § 853 and 18 U.S.C. § 1963, the Company requires for its review satisfactory evidence of the following:
a. The indictment sought forfeiture of this specific land by identifiable legal description;
b. The government secured a criminal conviction of the defendant owner;
c. The court order authorized forfeiture and seizure of the land;
d. All parties (including spouses with marital or community property rights) who are not defendants in a criminal action and who are not executing deeds or releases received personal notice;
e. Notice of the proposed forfeiture was published in a newspaper of general circulation;
f. The United States filed a motion for final order of forfeiture;
g. The court entered a subsequent final order of forfeiture;
h. The “final” (second) order of forfeiture is final and nonappealable;
i. The conviction is final and nonappealable (verify by a letter from the United States Department of Justice or other knowledgeable party);
k. Recordation of certified copies of the indictment and orders of forfeiture in the local real property records;
l. Verification by affidavit or inspection that no one is in actual possession of the land (except through the United States);
m. Disclosure in writing to the proposed insured that the forfeiture is in the chain of title.
At that time, the Company may make additional requirements or exceptions.
Comment: The Company’s guidelines for forfeitures are detailed because the Company considers subsequent insurance to be an extrahazardous risk.

Note: You may add additional local requirements here. Please consult with our underwriting personnel in preparing appropriate provisions.
(2) The affiant(s) have not and will not execute any instruments or allow any action that would adversely affect the interest to be insured.

See Underwriting Manual