I would agree that the use of blanket exceptions on Owner's Policies is inappropriate. I doubt the underwriter would find it acceptable, but that might just depend on the level of remittances the agent contributes, and the underwriter, of course.

I like the rule in Texas:

Section IV of the Basic Manual contains procedural rules for writing title insurance.  Rule P-5 states:

Special Exceptions---With the knowledge of the Insured, it shall be permissible for the Company to insert such special exception(s) as shall develop from the examination of the title under consideration. Such special exception(s) shall in all cases specifically describe the particular item(s) excepted to, and shall not be general in its terms.

I was very disappointed with the Ohio legislature when they changed the rules for foreclosures. They started requiring preliminary judicial reports for all foreclosures, which was good.  But, they allowed them to be issued on short-searches, that was not so good.  When ever title is going to transfer, a full search and a policy without blanket exceptions should be issued.

Best,
Robert A. Franco
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