First American Title Insurance Company announces new extended coverage "EAGLE" owner's title policy

February 11, 1997, SANTA ANA, CALIFORNIA

First American Title Insurance Company announced today that it has received authorization from the California Department of Insurance to begin issuing its new EAGLE Policy immediately on one-to-four family properties. This new owner's policy is the ALTA Plain Language Residential Owner's Policy, long considered the industry standard, but it incorporates 10 additional coverages. None of these new coverages have ever been automatically included in any owner's policy before.

"We have filled a void," said Cliff Morgan, underwriting director. "The EAGLE Policy was produced based on customers' needs and requests over the years. Some of the new coverages were only available by special endorsement previously, and others were not available at all."

Examples of new coverages include post-policy forgery and post-policy encroachment – protection is provided against forgeries performed or new structures built in the future which would cloud the homeowner's title. These have never been available from any title insurer in any form. Three other new coverages deal with violations of covenants, conditions and restrictions that occurred before the homeowner bought the property. A more limited coverage for these problems was previously only available by endorsement. There is also some coverage for subdivision law and building permit violations.

The new EAGLE Policy was designed to benefit both homeowners and real estate and escrow professionals who deal with homeowner concerns. In addition, First American has introduced a new EAGLE Loan Policy for lenders which provides coverages beyond those available through an ALTA Loan Policy.

First American Title Insurance Company, principal subsidiary of The First American Financial Corporation (NYSE: FAF), traces its history to 1889. One of the largest title insurers in the nation, it offers title services through a network of more than 300 offices and 4,000 agents throughout the United States. It also provides title services abroad in the Bahama Islands, Bermuda, Canada, Guam, Mexico, Puerto Rico, the U.S. Virgin Islands and the United Kingdom. The company has its headquarters in Santa Ana, California.


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