Underwriting Practices Clause Samples
Underwriting Practices. This Agreement applies only to insurance applications underwritten by the Company and for which conventional underwriting and issue practices are consistently applied. Subjective risks and business decisions will be excluded from this program, (eg. Financial underwriting problems, group offers, occupational/habits/moral risks). Credits will not be used to reduce a higher rating to fit within the Table 1-4 range. The Company will notify the Reinsurer of any change in underwriting or issue practices or philosophy, or a change in underwriting management personnel.
Underwriting Practices. The decision to accept an indemnity or undertaking must frequently be made on a case-by-case basis. It is important to bear in mind that, all too often, an indemnity which is unsupported by a deposit merely gives the title insurer a right to sue the indemnitor, who may or may not be 20 See §§10.06 et seq. regarding affirmative insurance. financially responsible.21 If the indemnity is accompanied by a deposit of funds, one should be concerned about the possibility of a subsequent bankruptcy filing by the indemnitor. If this occurs, the trustee may demand the turnover of the funds as property of the estate. However, if the agreement makes it clear that the funds be- long to the title company, it may be possible to resist successfully.22 When an indemnity is accepted, it is preferable to except and insure over the matter which is the subject thereof, rather than omit or waive the objection, in order to avoid questions of marketability.23 However, as noted above, the ac- ceptance of an indemnity issued by another title insurer generally obligates the re- cipient to omit the item in question.24