Attached for your reference is a schedule of suggested "Maximum Risk" amounts for the largest title insurance companies in the United States, as well as a number of their smaller affiliates and independent title insurance companies active in particular states or regions. The schedule is based on the insurers' financial reports to state regulatory agencies for the year ending December 31, 2007. The suggested "Maximum Risk" is just that, a suggestion as to the most title insurance risk a particular insurance company should be allowed to retain on a given project or financing. In most instances, the title insurance companies can legally accept more risk (and would be happy to do so), and this schedule is intended as a guideline for when it may be appropriate in larger transactions to diversify the title insurance risk (by requiring coinsurance and/or reinsurance) based on the financial size of the companies involved. The schedule indicates which insurers are affiliated companies, identifying the parent company under the heading "Industry Group" where applicable. Particularly in larger transactions, real estate investors and lenders may prefer to treat one "Industry Group" as a single insurer and require that risk be shared with unaffiliated companies through reinsurance and/or or co-insurance.

Link: TITLE INSURANCE COMPANIES: Suggested Maximum Single Risk Amounts - PDF (32 KB)

If you have questions regarding use of the suggested Maximum Risk schedule or other considerations in developing requirements for title coinsurance and/or reinsurance to diversify title insurance risk in transactions in which you are involved, please contact any of the undersigned.

Schiff Hardin LLP