Georgia Attorneys Title Guaranty Fund

Frequently Asked Questions

Questions:
What is the Georgia Fund® concept?

Why does an attorney need the Georgia Fund®?

How are the polices issue?

What are the rates and the split?

Is a Georgia Fund® policy best for the client?

What is the members' responsibility in case of a claim?

What is the procedure to join the Georgia Fund®?

What is the Georgia Fund® concept?

• The Georgia Fund® was created to provide an opportunity for lawyers to maintain a real estate practice in a time when title insurance is often requested and preferred over an abstract and title opinion.
• The record title needs examination in the client's interest by a practicing attorney. Even after that has been done, a risk remains, arising from latent defects and the chance of honest errors. The Georgia Fund® was created to continue the importance of an examination by an attorney while assuring the client against these remaining risks.
• Operating through the member system, the company leaves the profit from abstracting, title examination and incidental services with the member, receiving for itself only a portion of the risk premium.

Why does an attorney need the Georgia Fund®?

• The attorney who permits his client to leave the office and obtain title insurance from a commercial title insurance company is, in effect, inviting his client to take the closing elsewhere (possibly to a lender agent).
• Many people believe that a title insurance policy is an adequate substitute for a lawyer's opinion. The Georgia Fund® allows the lawyer the best chance to correct this belief by giving both personal legal counsel plus a guaranteed title insurance policy at the same cost as a commercial title policy alone.

How Are the polices issued?

• The Georgia Fund® provides a complete set of policy forms to the member. These forms are maintained in the Members office and may be issued by the member when needed. Our policies (subject to specific State laws) may be issued upon:
• A formal abstract or continuation thereof;
• A personal search of the public records;
• A prior owner's title insurance policy issued by a reputable title insurance company.
• You may rely on an owner's title insurance policy issued previously in connection with your title search and you need not go behind that policy date.

What are the rates and the split?

• Our rates are comparable to those charged by the commercial title companies. The Member receives from the client the entire premium charged for title insurance, then remits to the Georgia Fund® 40% of the amount collected. The Member retains 60% of the premium collected.
• The Georgia Fund® doesn't deal with the public directly, and therefore, we never circumvent the practicing attorney. Your charge your client, then you remit the 40% portion of the premium collected to us along with a copy of your final title insurance policy.

Is the Georgia Fund® policy best for the client?

• With a Georgia Fund® policy as part of your professional services, your client will be receiving total title insurance protection and at the same time have the policy prepared by his own attorney in his own best interest for no more than he would have to pay for a commercial policy.
• The Georgia Fund® has an underwriting agreement with First American Title Insurance Company of Santa Ana, California. First American Title Insurance Company is the largest title insurer in the nation and there is never any question of acceptability of our forms.

What is the members' responsibility in case of a claim?

• The Georgia Fund® requires a member to maintain professional liability insurance. Many such policies automatically have coverage as a Title Agent, others offer such coverage by endorsement to the E & O Policy. If you are a member of the Georgia Fund®, there is a special professional liability insurance program available to you.

What is the procedure to join the Georgia Fund®?

• You may call the office at 770-386-0616 or GA Watts 1-800-282-4504 and request an Information Package or simply download the Membership Application, Addendum and Agency Agreement. Complete the forms and send them to our office location along with a copy of your E&O Declaration Page and your Professional Resume' for processing.
• The process takes approximately 10 working days, and you will then be notified by phone of your acceptance. A date and time will be set up for us to deliver your supplies and go over the Policy and Procedure Fund Handbook with you and your staff.