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SECTION 22 - AFFIRMATIVE
COVENANT INSURANCE
(NEW CONSTRUCTION OR ALTERATION)
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A Company may affirmatively insure against the successful outcome
of an action to enjoin new construction or the alteration of an
existing structure or structures, where the cause of action is based
upon a violation of a restrictive covenant or an encroachment upon
an easement of light, air or right of way. The charge for such affirmative
insurance shall be thirty five percent (35%) of the applicable rate
for each policy issued with such affirmative insurance. The affirmative
insurance as set forth in this sub-section shall not include coverage
for the defense of such an action; although the Company may reserve
the right to approve the Insured's selection of counsel.
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