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Fidelity National Sets 2011 Retention Limits
The self-imposed risk retention limits for the Fidelity National family of title insurers have been established for 2011. If a company is asked to issue a policy in an amount greater than the retention limit in a particular transaction, it will minimize its risk by ceding reinsurance to another insurer. Typically, reinsurance will be ceded to other companies within the corporate family, if possible. The normal aggregate limit is $888,250,000, which is the sum of all of the insurers listed below. This may be broken down as follows (in alphabetical order):

Company
 
Alamo Title..............................
$           11,250,000
Chicago Title ...........................
428,000,000
Commonwealth Land Title.......
213,000,000
Fidelity National Title .............
.236,000,000
Fidelity Family Limit..............
.        $888,250,000

 
In other words, a policy in the face amount of $888,250,000 can be issued without the need to cede reinsurance to insurers outside the corporate family. (Owing to a series of corporate mergers effectuated in 2010, Lawyers, Security Union, Ticor and Ticor of Florida no longer appear on the list above.) If reinsurance is requested or required in a particular transaction, it will be arranged by the Reinsurance Department in the FNTG Home Office in Jacksonville, Florida.
It is important to distinguish between reinsurance and co-insurance. In reinsurance, one policy is issued in the face amount of the entire liability assumed. A portion of that liability is ceded to the reinsurers, by means of the ALTA Facultative Reinsurance Agreement (2006). If a loss occurs, the reinsurers are responsible for that portion of the loss (if any) which exceeds the amount retained by the primary insurer.
In co-insurance, the total liability is divided among two or more co-insurers, each of which is responsible for its proportionate share of any loss. Thus, the amount of each co-insurer’s policy is limited to the risk assumed. A co­insurance clause or endorsement is inserted into each policy which sets forth the arrangement among the co-insurers.
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