Given the additional review by various counsel on commercial transactions, this likelihood should be lower on those transactions. The aggregate capacity of the title insurance industry to insure a single risk frequently is less than $1,000,000,000, although both the industry surplus and the industry statutory premium reserves exceed this amount. Net liquid assets available to pay claims do not always justify the large title policy retention limits by title insurers.
Because of the disparity between available net liquid assets and statutory limits on risk retention, some insureds will impose their own formulas or checklists to determine the allowable risk retention by a title insurer.
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