Following the success of Art Business Summit, founded by Rosanne McDonell, The Art Collector touched base with Mary Buschman, President ARIS Title Insurance Corporation New York.
Can you describe the process of obtaining title insurance? To what extent does ARIS require the active involvement of the collector/owner?
In general, the information you will need to submit with your application includes:
- A completed ARIS ATPI application form from the party who will be insured
- The complete provenance, as you know it, for the object(s)
- A digital image or color transparency of the front and back of the object(s)
- Current and historical import/export documents and information you have
- The proposed Bill of Sale between the buyer and seller or the Bill of Sale for your previously acquired object.
ARIS will request further documentation from a collector if needed. If working with an intermediary such as an insurance broker, art dealer, attorney or wealth advisor, that person will correspond directly with their client in case more information is needed.
What are some of the issues title insurance insures against?
The four main risk categories insured under an ARIS Art Title Insurance policy include contemporary and historical theft, import and export defects, liens and encumbrances, and illegal or unauthorized sales.
Can you expand on what the ATPI policy entails? For example: is this an annual policy, what does the policy include/exclude, can the policy cover multiple owners (such as in the case of a corporate acquisition)?
The ARIS Art Title Insurance policy is has a one-time premium for the lifetime of ownership and the term is automatically extended to the insured’s legal heirs. The policy terminates when the insured work is sold or otherwise transferred by charitable gift or donation. Exclusions are consistent with real estate title exclusions. There is a general exclusion for affirmative misrepresentation. Exclusions for claims against ARIS and its reinsurer(s) in the nature of defamation of title, impairment of value or damage to reputation of transaction principals asserted because of the ARIS application or underwriting process. The ARIS Art Title Insurance policy is a “tell us what you know” policy, but it is not contingent on what the insured “should have known”.
The policy can cover a joint ownership.
What do you think is the importance of a platform such as Art Business Summit?
The meeting of experts who work in the art market’s risk management sector gives an invaluable, and focused perspective on art as an asset class and real issues that collectors are encountering in the market today.
Do you work with only national collections or do you work with both national and international collections?
ARIS works with collections all over the world.