First American Introduces New Cape Town Convention Aircraft Title Insurance Policies
November 17, 2004, SANTA ANA, Calif.
First American Transportation Title Insurance Company, a member of The First American Corporation (NYSE: FAF) family of companies, today announced the introduction of its innovative new aviation title insurance product, the Cape Town Convention Aircraft Owner’s Policy. The policy insures the purchaser of an aircraft against certain title risks arising in transactions subject to the Federal Aviation Transportation Code and the Cape Town Convention on International Interests in Mobile Equipment. The companion loan policy was also introduced.
The Cape Town Convention was ratified by the
Based on First American Title’s EAGLE Protection Aircraft Policy for owners and lenders, the new coverages insure the attachment, perfection and priority of the aircraft purchaser and lender’s interest in an aircraft registered under the FAA Transportation Code as well as the Cape Town Convention.
John N. Casbon, president and chief executive officer of First American Transportation Title Insurance Company, said: “We are proud to announce these innovative coverages to the aviation industry. These are the first and only aircraft title insurance policies to offer protection against most title risks inherent in aircraft transactions after adoption of the Cape Town Convention. This is important because the Cape Town Convention creates an entirely new system for perfecting ownership and security interests in aircraft and engines. With any new system there will be uncertainty. Our product provides aviation owners and lenders with the certainty, security and predictability necessary to go forward with multimillion dollar transactions as the industry is adapting to the nuances of a complex international treaty. This product was designed after significant input from the aviation community, whose enthusiasm for these products has been incredibly high.”
First introduced in 1999, First American’s EAGLE Protection aircraft title policies offer insurance that provides coverage for: ownership disputes, most unrecorded liens including mechanic’s liens, document forgery, defective filing of documents, clerical errors, errors in closing, gap coverage, federal and state tax liens (up to $250,000), and the cost of defense.
“The Cape Town Policy is a welcome complement to our aircraft owner and lender title insurance policies,” added Casbon. “Our policies are gaining ever wider acceptance in aircraft acquisition and loan transactions. Now these new policies allow us to furnish a tool to facilitate the closing of
The Cape Town Convention Aircraft Policies are awaiting routine regulatory approval.
First American Transportation Title Insurance Company, a subsidiary of First American Title Insurance Company, is the industry's leading provider of title insurance for the aviation and maritime industries. The Aircraft Title Division, headquartered in
First American Title Insurance Company, the largest subsidiary of The First American Corporation, traces its history to 1889. One of the largest title insurers in the nation, the company offers title services through nearly 1,500 offices and an extensive network of agents throughout the United States and abroad. The company has its headquarters in