It is likely that the substantial restriction of the compensation agreement for a title agent is as follows: the maximum amount of compensation under the VMIT is lower (1) the amount of insurance of the previous policy, (2) the degree of liability of the insurer for the previous policy or (3) $500,000.00. Some examples of how this applies: be aware that First American did not implement the amendment on the VMIT that added the second group of insurers. While First American did not veto the admission of one of the new members, as was possible under the VMIT conditions, its decision not to implement the amendment means that one of the second groups that have a title error under a first qualifying American policy must be supported, as in the past, a letter of compensation (LOI). The other three Big Four sub-officials participate in VMIT with the second group of underwriters. The title industry in Virginia has had a mutual compensation contract since the fall of 2015. This agreement between title insurers facilitates the liability of insurance agents to clarify the coverage of listed securities only for insurance purposes, by offering an alternative to the letters of compensation. The purpose of the agreement is stated in its introductory paragraph: “In order to expedite the release of certain types of title insurance rights and to limit the need for individual rights to compensation or benefits, … All right. compensate each other subject to provisions and restrictions.

This article is an update of the provisions and restrictions of the agreement. Be sure to tell your insurer of any problems you see when trying to apply VMIT to a title error you see when reviewing the title on your future title insurance case. All parties to VMIT prefer clearing title objections in the most effective way. In addition, an underlying principle of VMIT is that responsibility for the management of legal defects remains within the purview of the party that first took the risk of loss. VMIT is a tool to replace the system of obtaining letters of compensation. In some circumstances, an ACT remains the best option for compensation between insurers. A decision to accept a LOI or rely on the compensation contract is a decision your under-fiddle must make. Therefore, and in conclusion, if you have any doubts about applying VMIT to a single case, contact your insurer and follow its instructions. Examples show what a final insurance warning can be: if you have a title error that is a pledge of money that exceeds $500,000, even if the previous policy exceeds the amount of the title error, contact your subtitler for guidance.

VMIT provides compensation against the pledge fee of up to $500,000.00, but your underwriter may require that a letter of compensation be insured for the excess. The previous insurer may decide not to issue the ACT if its insurer does not wish to insure. While this list is complete, the alleged deficiency must precede the date of the policy by which you seek compensation. Errors such as those mentioned above, which are first created during the tenure of the current owners of the property, are not matters covered by the VMIT.