SECTION 22 - AFFIRMATIVE COVENANT INSURANCE (NEW CONSTRUCTION OR ALTERATION)

1. 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.