The ALTA 34-06 Identified Risk Endorsement is the standard form to provide “affirmative coverage” which indemnifies against loss or damage occasioned by certain title matters of record which are not likely to cause a loss of title or be enforced against the named insured. This endorsement replaces the practice in some areas of reflecting affirmative coverage language in Schedule B following an exception.
The endorsement is intended for those situations in which the Insurer is unwilling to delete a certain exception from Schedule B of a title policy, but believe the risk of loss is so slight that the Insurer is willing to provide a limited form of indemnification with respect to the specific defect, lien, encumbrance or other matter excepted to.
This endorsement provides coverage in the event that a final court order or decree enforces an Identified Risk in favor of an adverse party. It also insures, subject to certain conditions stated in the endorsement, against loss or damage as a result of the release of a prospective purchaser or lessee of the Title or lender on the Title from the obligation to purchase, lease or lend as a result of the Identified Risk.
This endorsement is available in owner’s and lender’s title insurance policies.
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