The amount of insurance of the proposed Policy is limited to $1,000.00. The total liability of the Company under this commitment shall not exceed that amount, unless and until another amount of insurance of the Policy to be issued is agreed upon and the Company’s applicable insurance charges are paid. The Company requires satisfactory evidence of the loan, actual value, or sales price, of the estate or interest to be insured. If the Company approves that amount, it may be entered as the amount of insurance of the proposed Policy to be issued. The name of the proposed insured also must be agreed upon.
Comment: The amount of the policy generally must be in the amount of the sales price or loan. If the Commitment is issued when the amounts are not known, the Commitment should limit liability by a note in Schedule A.