15.44 Policy Approval


In General

The issuance by an Agent of a title insurance policy which exceeds the authorized limit set out in the Agent's underwriting contract is not authorized. It is necessary that, either prior to the issuance of the title commitment or the delivery thereof to the applicant(s), specific written approval from the company be obtained.

Likewise, insurance of certain extra-hazardous risks, (e.g., mechanics' liens coverage during construction) or the issuance of certain types of endorsements (e.g., "zoning") requires specific underwriting prior authority.

Any request for policy approval may be made either by letter or by telephone. In most cases, the large policy approval form should be used. These may be obtained from the Forms Department in Houston (See attached Exhibit). Normally, a copy of the commitment (if any has been issued) must be submitted to the Company. In certain cases, it may also be necessary to attach copies of pertinent or related documents.

The Company will promptly notify the Agent of the approval either by letter or telephone. There are circumstances in which the Company may decide not to approve the issuance of a policy.