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Why Make TIAC Your
Choice For E&O Insurance?
Unlike other insurers of title agents and abstracters professional
liability/errors and omissions insurance, Title Industry Assurance
Company (TIAC) is owned and governed by its ALTA member insureds and exists solely to provide for the E&O
needs of its title agent and abstracter insureds
nationwide. Since title professionals own and govern TIAC, we have the
knowledge and expertise to customize our coverage for the special needs
of our insureds. Managed by insurance
professionals, TIAC has provided a stable and competitive market since
1988.
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What Is TIAC And
What Led To Its Formation?
Abstracters and title agents across the country have long been troubled
by recurring errors and omissions insurance problems brought about by
abrupt market changes. Dramatic swings in prices and availability led the
American Land Title Association to look for a better alternative that
would bring long-term stability for title professionals seeking E&O
coverage.
After considering several different approaches, ALTA
leaders decided that the most effective solution would be to create TIAC,
an independent risk retention group wholly owned by members of the
Association. TIAC issued its first policy in June of 1988 and has been
continuing to insure more and more title professionals since that time.
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What Is A Risk
Retention Group?
Under the 1986 amendments to the Liability Risk Retention Act of 1981, a
risk retention group is a special purpose insurance company owned solely
by its policyholders, which may write only liability insurance-including
E&O coverage. Under the Act, TIAC is chartered and licensed in Vermont for the
purpose of issuing title agents and abstracters E&O insurance
nationwide.
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Who Is Eligible
To Apply For Coverage?
Any active or associate member of ALTA may apply for E&O coverage
from TIAC. To purchase coverage, members must own stock in TIAC.
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What Is The
Stock Purchase Requirement?
To insure with TIAC, an ALTA active or associate member is required by
the federal law establishing risk retention groups to purchase stock in
TIAC. Two classes of TIAC stock are offered and the purchase of either
class satisfies the stock purchase requirement.
Class A
stock is priced at $1,000 per share with a minimum purchase requirement
of 1_ shares for every five professional employees or part thereof. Since
there are no partial shares, the requisite number of shares must be
rounded upward. Class A shareholders have full voting rights and may
qualify to serve on TIAC's Board of Directors.
Class B
stock is priced at $100 per share ($1 par value) and there is a one share
purchase requirement, no matter how large or small the insured firm is.
Class B stock has limited voting rights and Class B shareholders may not
serve on the Board of Directors of TIAC. Class B stock may be redeemed
for its $1 par value.
For specific rules, rights and requirements, please
refer to the Summary Business Plan and Disclosure Document which is
available upon request to the Underwriting Manager.
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Who Is
Considered A Professional Employee?
TIAC defines "professional employee" as "All active
officers and employees engaged on a full or part time basis in one or
more of the following activities to be insured: abstracting, title
underwriting, title opinion, escrow/closing, commitment or policy
preparation".
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Can An ALTA
Member Sell TIAC Stock?
ALTA members may sell their TIAC stock if they decide not to purchase
E&O coverage, leave the title industry, etc. Because TIAC is a risk
retention group, members are in fact required to sell their stock should
they be declined for coverage or for any other reason decide not to
purchase the E&O coverage. Please see the Summary Business Plan and
Disclosure Document for specific rules and requirements concerning the
purchase and sale of TIAC stock.
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Is TIAC Stock Assessable?
No. Under the laws of the state of Vermont,
the state in which TIAC is incorporated, stock in any
corporation-including TIAC-is non-assessable.
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What Coverage
Does TIAC Offer?
Coverage is provided on a "claims made" basis and includes
prior acts coverage for qualified insureds. TIAC's policy insures professional services rendered
as a title agent (including limited title opinion coverage), abstracter,
searcher, escrow agent, closing agent and notary public. Optional coverages available to qualified insureds
include:
- First Dollar
(No Deductible) Defense Coverage
- Claims
Expenses in Addition to the Limit of Liability
- Annual
Aggregate Deductible
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What Policy Limits
And Deductibles Are Available?
TIAC offers flexible policy limits from $100,000 to $1,000,000 per claim
and from $100,000 to $2,000,000 annual aggregate. Deductible options
range from $2,500 to $50,000 or more.
All limit and deductible options are, of course,
subject to TIAC's underwriting guidelines.
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How Does TIAC
Determine Its Premiums?
Premiums are based on a number of factors including:
- Number of
professionals insured
- Annual gross
income from covered title activities
- Policy limits
and deductible selected
- Coverage
selected
- Prior E&O
loss experience
- Prior E&O
insurance history
For a specific premium quotation,
an application for insurance must be completed and sent to
TIAC's Underwriting Manager
Title Industry Assurance Company
7501 Wisconsin Avenue,
Suite 1500
Bethesda, MD 20814-6522.
For an application, please call our toll-free number 1-800-628-5136.
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What Type of
Policy Will TIAC Issue?
TIAC will issue a "claims made" policy that insures the named
ALTA member company, as well as all of its principals, partners and
employees. In the event of cancellation or non-renewal by TIAC (except
for non-payment of premium), a one year extended reporting endorsement
may be purchased to cover claims reported during the extended reporting
period arising from negligent acts, errors or omissions which occurred
prior to the end of the policy period and otherwise covered by the
policy. Full retroactive coverage is provided to eligible insureds for claims made during the policy period
that arise from past negligent acts, errors or omissions if, on the
effective date of the policy to be issued, no insured had any knowledge
of such negligent act, error or omission.
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How Are Claims
Handled?
TIAC has retained as claims counsel one of the leading professional
liability/errors and omissions insurance defense firms in the country in order
to provide prompt, courteous and professional claims handling to its insureds. TIAC's claims
counsel is the Washington, DC law firm of Ross, Dixon
and Bell,
L.L.P.
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These are program
highlights used for the purpose of illustration only. The coverage
provided is that set forth in the terms, conditions and limitations of
the policy of insurance. We will be happy to send you a specimen policy
at your request.
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