Claims Deadline Set in Southern Title Receivership
A deadline of January 28, 2015 (the "Claim Deadline") has been set for filing claims related to title insurance policies issued by Southern Title Insurance Corporation ("Southern Title").
Southern Title has been in receivership since December 20, 2011. On July 28, 2014, the State Corporation Commission for the Commonwealth of Virginia issued an Order of Liquidation with a Finding of Insolvency as to Southern Title. Accordingly, Southern Title's assets will be liquidated and funds paid out to secured creditors and those parties that file claims before the Claim Deadline. Claims may be filed for any potential policyholder's claim including, but not limited to, (a) known title defects, (b) unearned premium claims, and possibly (c) costs associated with obtaining replacement coverage. Banks holding Southern Title policies in connection with material lending relationships are encouraged to evaluate potential title issues, and to consider obtaining replacement title policies from another title insurer prior to the Claim Deadline. Parties filing claims after the Claim Deadline will only receive payment to the extent funds remain after all timely filed claims have been paid. Once Southern Title's assets have been fully distributed, no further coverage will be provided with respect to existing Southern Title policies. You should consult with counsel to discuss any specific coverage or claim questions you may have.
About the Author
Jennifer J. West focuses her practice on creditors' rights, commercial litigation, insolvency, workouts and foreclosure. She primarily represents banks and other lending institutions, with a particular focus on community banks.
Spotts Fain publications are provided as an educational service and are not meant to be and should not be construed as legal advice. Readers with particular needs on specific issues should retain the services of competent counsel.