Term Paper on "Title Insurance and Art"

Term Paper 7 pages (2092 words) Sources: 10 Style: Chicago

[EXCERPT] . . . .

Art Title

It is interesting to note that attaining a career in Title Insurance can be as easy as taking a few online courses, and that some states do not even require that minimal amount of education in order to get a license to work in Title Insurance.

One school offering online courses in Title Insurance states, "While some states do not require education in order to get your Title and Escrow licenses, you should never start a new career without some additional education." (Title and Escrow 2005) Since the school is touting its own particular courses to enhance the reader's education, it is easy enough to understand why the website would express those viewpoints, but further research shows that the website was correct in its statement.

Of the fifty American states there are thirteen that have pre-licensing requirements before you can take the exam to become a Title Insurer. Additionally, there are twenty four states that have no pre-licensing requirements but do require that the individual take an exam before receiving a license to work in the Title Insurance field. The remaining states have no pre-licensing requirements and require no exam at all to work as a Title Insurer.

The lack of a required education does not necessarily mean that the person(s) interested in working in that field would be able to just walk into an insurance company offering title insurance, and be hired to work at that specialty. There is some knowledge that has to be attained before individuals would be able to work as a Title Insurer.

The first thing to understand about working in the insurance industry is the knowledge of just what title insurance is. When most people speak of title insurance they are referring to the insurance that is usually purchased in conjunction with the purchase of a house, or other type of real estate.

Title Insurance is protection against loss arising from problems connected to the title of your property." (Title Insurance 2006) These problems can include a number of different items such as; a previous owner owing back taxes which has caused a lien on the property, or someone transferring ownership of the property without legal authority to do so. "Title insurance covers the insured party for any claims and legal fees that arise out of such problems." (Title Insurance 2006)

As stated above, the person working in the Title Insurance industry usually needs some working knowledge of real estate transactions, and the legalities that go with such transactions. There are, however, other types of Title Insurance. One type of title insurance is the insurance issued to authenticate the owner's title to works of art, including paintings and sculptures. This is a relatively new area of insurance, and in fact, the very first company to exclusively offer title insurance on artwork was created in 2006.

Lawrence M. Shindell, a Milwaukee attorney with a specialty in art law, and his sister, Judith L. Pearson of Denver, a veteran in the insurance business, have launched ARIS Title Insurance Corporation in New York." (Cohen 2006)

These two individuals created the company for the express purpose of selling title insurance for artwork.

This is an important event because it could open up additional opportunities for individuals interested in working for the insurance industry, and especially those interested in working in the title area of the industry. With additional areas to provide title insurance more individuals would have the opportunity to work in that field.

Many of the individuals currently working for title companies, or providing title insurance services are likely to have some type of law background. Either they are attorneys, or they work for attorneys who specialize in real estate transactions. Often times there are independent brokers who search out those in need of title insurance.

About two-thirds of all title policies are issued by independent agents, which is about the same market share that mortgage brokers have. The balance is accounted for by branches of insurers or by agencies wholly owned by them." (Title Insurance 2006)

Having such a disproportionate amount of independent agents offering the same type of product could lend itself to situations of abuse, and that could spell trouble for the consumer. There are thousands of companies that offer mortgages, and many of them are through independent agents. There are only five title insurers that account for approximately ninety percent of the issued policies. These five insurers do not necessarily include Aris Title Insurance Corp, although the five insurers (depending on the viability of the market) could certainly join Aris in offering such services if they were deemed profitable.

Insurance companies that currently offer insurance for property include such well-known companies as Lloyds of London, Chubb Group Insurance, AXA Fine Art Services, First American Title Insurance, and Fidelity National Title Insurance Company.

Lloyds of London has been insuring properties and people for more than 350 years starting as a modest coffee shop in the late 1600's. "Lloyd encouraged a clientele of ship's captains, merchants, ship owners and others with an interest in overseas trade...so, at a time when communications were unreliable, Lloyd gained an enviable reputation for trustworthy shipping news." (Lloyds 2007)

His reputation for trustworthiness made it easier to sell insurance for a variety of ships and their cargo. According to Lloyd's website, "Lloyd's is the world's leading insurance market providing specialist insurance services to businesses in over 200 countries and territories. In 2007, 66 syndicates are underwriting insurance at Lloyd's." (Lloyds 2007) With such a wide variety of areas covered by Lloyds the opportunities exist in many circumstances for title services, both in regards to searching titles, as well as offering title insurance. Lloyds also offers a graduate program through 20 affiliated companies that offers additional career situations for those individuals graduating from college.

Chubb Group Insurance is a more locally operated company though it too is international in its dealings. Chubb seems to concentrate on the more renewable areas of insurance. These areas include home owners insurance and services as well as a policy that would insure artwork and collectibles.

Although Chubb does not specify title insurance on artwork as one of their areas of expertise, the company does tout its capabilities when it comes to valuable pieces of art. "Chubb's collector specialists can review your valuable articles schedule for you, analyze current market trends, and highlight pieces that may be underinsured." (Chubb 2007) in searching for career opportunities with Chubb in regards to Title Insurance, it would seem likely that since the company hires and trains thousands of independent agents, that part of the training would likely cover those title services as well.

One reason why, in the future, many companies such as Lloyds or Chubbs may be offering more in the way of title insurance for fine pieces of art is because it could become quite profitable for them to do so. This is true especially concerning pieces of art that were confiscated or stolen during the Nazi reign in Germany. Many of the paintings and pieces of art are now being brought to light, and their original owners are demanding reparation.

We've all been kept busy over the past couple of years reading ever-increasing news items about (allegedly) stolen and/or looted art and/or antiquities possibly having been acquired through less-than-legitimate channels or lacking proper provenances - along with (allegedly) wronged parties suing or otherwise pursuing getting their "stuff" back." (Esaak 2006)

Very few, if any, collectors of fine art would enjoy the prospect of loaning or donating a painting, or piece of art to a museum, only to have another person declare that the art was stolen or illegitimately obtained. This is a textbook example of the need for title insurance and someone to provide that insurance for the collector.

Fidelity National Title Insurance Company may be a company that would offer a wide career choice to the individual interested in title work, either in the area of searching or providing title services. Fidelity was founded over 150 years ago in an attempt to specialize its offerings in searching out titles. Fidelity touts its foundation on its current website in the following manner, "Western Title Insurance Company (now Fidelity National Title Insurance Company of California) traced its origin to C.V. Gillespie (founder), a notary public and searcher of records in San Francisco." (Fidelity 2006) With this type of company background, the odds are that an individual searching for a career in title services would bode well with this company.

The company's website also states, "Fidelity National Title Insurance Company (FNTIC) takes pride in title and escrow services that meet customer demands for efficient and timely processing and quality products. Through its nationwide network of direct operations and agents, FNTIC provides title insurance, underwriting, escrow and closing services to residential, commercial and industrial clients, lenders, developers, attorneys, real estate professionals and consumers." (Fidelity 2007)

The career market for title insurers, or for those who offer such services on an independent agent basis seems to be a… READ MORE

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