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8. DETERMINATION AND EXTENT OF LIABILITY
<br /> This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this
<br /> policy.
<br /> (a) The extent of liability of ATG for loss or damage under this policy shall not exceed the lesser of
<br /> (i) the Amount of Insurance;or
<br /> (ii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy.
<br /> (b) If ATG pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title,as insured,
<br /> (i) the Amount of Insurance shall be increased by 10%,and
<br /> (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid.
<br /> (c) In addition to the extent of liability under(a)and(b),ATG will also pay those costs,attorneys'fees,and expenses incurred in accordance with Sections 5 and 7 of these Conditions.
<br /> 9. LIMITATION OF LIABILITY
<br /> (a) If ATG establishes the Title,or removes the alleged defect,lien,or encumbrance,or cures the lack of a right of access to or from the Land,or cures the claim of Unmarketable Title,all as insured,in a
<br /> reasonably diligent manner by any method,including litigation and the completion of any appeals,it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss
<br /> or damage caused to the Insured.
<br /> (b) In the event of any litigation,including litigation by ATG or with ATG's consent,ATG shall have no liability for loss or damage until there has been a final determination by a court of competent
<br /> jurisdiction,and disposition of all appeals,adverse to the Title,as insured.
<br /> (c) ATG shall not be liable for loss or damage to the Insured for liability voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of ATG.
<br /> 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY
<br /> All payments under this policy,except payments made for costs,attorneys'fees,and expenses,shall reduce the Amount of Insurance by the amount of the payment.
<br /> 11. LIABILITY NONCUMULATIVE
<br /> The Amount of Insurance shall be reduced by any amount ATG pays under any policy insuring a Mortgage to which exception is taken in Schedule B or to which the Insured has agreed,assumed,or taken
<br /> subject,or which is executed by an Insured after Date of Policy and which is a charge or lien on the Title,and the amount so paid shall be deemed a payment to the Insured under this policy.
<br /> 12. PAYMENT OF LOSS
<br /> When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions,the payment shall be made within 30 days.
<br /> 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT
<br /> (a) Whenever ATG shall have settled and paid a claim under this policy,it shall be subrogated and entitled to the rights of the Insured Claimant in the Title and all other rights and remedies in respect to the
<br /> claim that the Insured Claimant has against any person or property,to the extent of the amount of any loss,costs,attorneys'fees,and expenses paid by ATG.If requested by ATG,the Insured Claimant
<br /> shall execute documents to evidence the transfer to ATG of these rights and remedies.The Insured Claimant shall permit ATG to sue,compromise,or settle in the name of the Insured Claimant and to
<br /> use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies.
<br /> If a payment on account of a claim does not fully cover the loss of the Insured Claimant,ATG shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss.
<br /> (b) ATG's right of subrogation includes the rights of the Insured to indemnities,guaranties,other policies of insurance,or bonds,notwithstanding any terms or conditions contained in those instruments that
<br /> address subrogation rights.
<br /> 14. ARBITRATION
<br /> Either ATG or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association("Rules"),Except
<br /> as provided in the Rules,there shall be no joinder or consolidation with claims or controversies of other persons.Arbitrable matters may include,but are not limited to,any controversy or claim between ATG
<br /> and the Insured arising out of or relating to this policy,any service in connection with its issuance or the breach of a policy provision,or to any other controversy or claim arising out of the transaction giving rise
<br /> to this policy.All arbitrable matters when the Amount of Insurance is$2,000,000 or less shall be arbitrated at the option of either ATG or the Insured.All arbitrable matters when the Amount of Insurance is in
<br /> excess of$2,000,000 shall be arbitrated only when agreed to by both ATG and the Insured.Arbitration pursuant to this policy and under the Rules shall be binding upon the parties.Judgment upon the award
<br /> rendered by the Arbitrator(s)may be entered in any court of competent jurisdiction.
<br /> 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT
<br /> (a) This policy together with all endorsements,if any,attached to it by ATG is the entire policy and contract between the Insured and ATG.In interpreting any provision of this policy,this policy shall be
<br /> construed as a whole.
<br /> (b) Any claim of loss or damage that arises out of the status of the Title or by any action asserting such claim shall be restricted to this policy.
<br /> (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person,or expressly incorporated by Schedule A of this policy.
<br /> (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions.Except as the endorsement expressly states,it does not(i)modify any of
<br /> the terms and provisions of the policy,(ii)modify any prior endorsement,(iii)extend the Date of Policy,or(iv)increase the Amount of Insurance.
<br /> 16. SEVERABILITY
<br /> In the event any provision of this policy,in whole or in part,is held invalid or unenforceable under applicable law,the policy shall be deemed not to include that provision or such part held to be invalid,but all
<br /> other provisions shall remain in full force and effect.
<br /> 17. CHOICE OF LAW; FORUM
<br /> (a) Choice of Law:The Insured acknowledges ATG has underwritten the risks covered by this policy and determined the premium charged therefor in reliance upon the law affecting interests in real
<br /> property and applicable to the interpretation,rights,remedies,or enforcement of policies of title insurance of the jurisdiction where the Land is located.
<br /> Therefore,the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title that are adverse to the Insured and to interpret and
<br /> enforce the terms of this policy.In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law.
<br /> (b) Choice of Forum:Any litigation or other proceeding brought by the Insured against ATG must be filed only in a state or federal court within the United States of America or its territories having
<br /> appropriate jurisdiction.
<br /> 18. NOTICES,WHERE SENT
<br /> Any notice of claim and any other notice or statement in writing required to be given to ATG under this policy must be given to ATG at P.O.Box 9136,Champaign,Illinois61626-9136.
<br /> ATG FORM 1010-06
<br /> 0 ATG(REV.1/12) Page 4 of 4
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