We are renewing our E &O for another year (of course).  I was wondering if anyone else had experienced the following:

This year a new exclusion has been added barring obligation to pay any claims "based upon or arising from, either directly or indirectly, any professional services performed, allegedly performed, or which were to have been performed regarding any sub-prime mortgage loans.." 

My concern is--yes, sub-prime underwriting standards have cause a dramatic increase in E & O claims in the industry and yes, most of those current owner searches we all get asked to do are not being done because the client has already done a full search previously, but because they wanted the cheapest, fastest search possible to get those bad loans closed so they could sell them.  But, how is an abstractor, who is not also a closer or title agent, have any idea why they are being asked to search the property---I have no information as to the type of loan that my report will be used to close.

I suspect that all of the carriers are adding this clause, so my question is:  how would you handle it as far as limiting your liability?  By what method would you protect yourself from information you cannot possibly be privy to?  Disclaimer on the report?  Also, since E & O is claims made, does this exclusion obviate them from paying a claim that might arise in the future on work done prior to the exclusion?

Wendi