Hey Donna,
TIAC is a little different. It is a Risk Retention Group, not an insurance company. That means that they are not subject to the same regulations as other providers. That could be part of the reason they are less expensive. Not to over simplify the situation, but basically in order to create an affordable option for E&O coverage ALTA set up TIAC. In order to be insured through TIAC, you must belong to ALTA and purchase one share of stock in TIAC.
A Risk Retention Group is basically a group of people with similar needs for coverage that join together to self-insure. The Risk Retention Group handles their own claims and they usually arrange for reinsurance to prevent any catastrophic losses.
On another note... what you said about not getting E&O so that your clients' E&O would have to cover you... that isn't exactly right. Their E&O would protect them if they used an uninsured abstractor who made a mistake, but NOT the abstractor.
Basically an insured who has coverage to use independent abstractors will be covered if the independent abstractor misses something. However, that E&O company can subrogate against the abstractor - that is why the abstractor should have E&O coverage. It is extremely important.
Best,
Robert A. Franco
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