Bulletin: NH000002

Dear Associates:

As the yearly review of agents has progressed it has become evident that there is some confusion relating to preparation of Exhibit "A". We want to take the time to explain what Exhibit "A" represents, why and what should be included and why and what should NOT be included.

Please refer to SCHEDULE "A". Item 5 reads; "The land referred to in this policy is described as follows:". The definition of ?LAND' is contained in policy jacket and is standard for ALTA policies. The definition of "LAND" states that it does not include property beyond the area described or referred to in Schedule "A".

As an example, if a Right of Way is included in Exhibit "A" we would be forced to insure it. That's OK if the title to the ROW has been searched as per our agreement. Otherwise, it is not OK and should not be on Exhibit "A".

As a second example, lets look at area measurements. Area measurements should not be included as insured property as it CLEARLY conflicts with Schedule "B" that states under General Exception number three; "Discrepancies, conflicts in boundary lines, shortages in area..." One might argue that why do we then put in measurements. Good point, but you do have to describe the property somehow. [The area of the parcel is calculated from the different courses of the description.]

Last, lets look at easements reserved from the description. If they are contained on Exhibit "A" are we insuring someone else's rights? Possibly!

Remember, we are the Insurance Professionals and the courts have held that any unclear language in policies will be held to the benefit of the insured. So, if we are hired to do a title search and we find matters that need to be excepted except them. We cannot except out for matters of record that where not found as a blanket way to protect ourselves.

To sum up: Put only the bare legal description on Exhibit "A" and all matters that are excepted on Schedule "B". The bare legal should include State, County, Town, Property Description and (it would be nice but not required) the common street address.