**FORM      10-K**

**INVESTORS      TITLE COMPANY**

| **North                Carolina**              | **56-1110199**                     |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |

**21      North Columbia Street**

**Chapel      Hill, North Carolina 27514**

**(919)      968-2200**

**Common      Stock, no par value**

**DOCUMENTS      INCORPORATED BY REFERENCE**

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**SAFE      HARBOR FOR FORWARD-LOOKING STATEMENTS**

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**INVESTORS      TITLE COMPANY AND SUBSIDIARIES**

| PART                I   |                                                                                                                                                         |   |
|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| ITEM                1.  | BUSINESS                                                                                                                                                     | 4      |
| ITEM                1A. | RISK                FACTORS                                                                                                                                  | 12     |
| ITEM                1B. | UNRESOLVED                STAFF COMMENTS                                                                                                                     | 15     |
| ITEM                2.  | PROPERTIES                                                                                                                                                   | 15     |
| ITEM                3.  | LEGAL                PROCEEDINGS                                                                                                                             | 16     |
| ITEM                4.  | SUBMISSION                OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                                           | 16     |
|                    |                                                                                                                                                         |   |
| PART                II  |                                                                                                                                                         |   |
| ITEM                5.  | MARKET                FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND                ISSUER                PURCHASES OF EQUITY SECURITIES | 17     |
| ITEM                6.  | SELECTED                FINANCIAL DATA                                                                                                                       | 18     |
| ITEM                7.  | MANAGEMENT'S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS                                          | 18     |
| ITEM                7A. | QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                    | 18     |
| ITEM                8.  | FINANCIAL                STATEMENTS AND SUPPLEMENTARY DATA                                                                                                   | 18     |
| ITEM                9.  | CHANGES                IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL                DISCLOSURE                                           | 19     |
| ITEM                9A. | CONTROLS                AND PROCEDURES                                                                                                                       | 19     |
| ITEM                9B. | OTHER                INFORMATION                                                                                                                             | 19     |
|                    |                                                                                                                                                         |   |
| PART                III |                                                                                                                                                         |   |
| ITEM                10. | DIRECTORS                AND EXECUTIVE OFFICERS OF THE REGISTRANT                                                                                            | 20     |
| ITEM                11. | EXECUTIVE                COMPENSATION                                                                                                                        | 20     |
| ITEM                12. | SECURITY                OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED                STOCKHOLDER MATTERS                                 | 20     |
| ITEM                13. | CERTAIN                RELATIONSHIPS AND RELATED TRANSACTIONS                                                                                                | 20     |
| ITEM                14. | PRINCIPAL                ACCOUNTANT FEES AND SERVICES                                                                                                        | 20     |
|                    |                                                                                                                                                         |   |
| PART                IV  |                                                                                                                                                         |   |
| ITEM                15. | EXHIBITS                AND FINANCIAL STATEMENT SCHEDULES                                                                                                    | 21     |
|                    |                                                                                                                                                         |   |
| SIGNATURES              |                                                                                                                                                         | 22     |

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**PART      I**

**ITEM      1.**
**BUSINESS**

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**ITEM      1A. RISK FACTORS**

**The      Company’s results of operations and financial condition are susceptible to      housing markets and changes in mortgage interest rates and general economic      conditions and seasonality.**

**Insurance      regulations limit the ability of the Company’s insurance subsidiaries to pay      dividends to it**

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**The      Company’s insurance subsidiaries are subject to additional complex state      government regulations.**

**The      Company’s non-insurance subsidiaries are also subject to state and federal      regulations.**

**The      performance of the Company’s investments depends on conditions that are outside      its control.**

**The      Company may encounter difficulties managing growth, which could adversely affect      its results.**

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**Competition      in the Company’s business affects its revenues**

**The      Company’s success depends on its ability to attract and retain key      personnel and agents.**

**Differences      between actual claims experience and underwriting and reserving assumptions      may      adversely affect the Company’s financial results.**

**The      Company may experience significant claims relating to its title insurance      operations **
**which      would adversely affect its results.**

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**A      downgrade or a potential downgrade in one of the Company’s financial strength      ratings could result in a loss of business. **

**Regulatory      and legal actions may result in financial losses and harm to the Company’s      reputation.**

**The      Company may experience losses resulting from fraud, defalcation or      misconduct.**

**ITEM      1B. UNRESOLVED STAFF COMMENTS**

**ITEM      2. PROPERTIES**

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**ITEM      3. LEGAL PROCEEDINGS**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**EXECUTIVE      OFFICERS OF THE COMPANY**
** **

| Name                              | Age    | Position                with Registrant                                                                            |
|-----------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|
|                              |   |                                                                                                               |
| J.                Allen Fine      | 71     | Chief                Executive Officer and Chairman of the Board                                                   |
|                              |   |                                                                                                               |
| James                A. Fine, Jr. | 43     | President,                Treasurer, Chief Financial Officer, Chief Accounting                Officer and Director |
|                              |   |                                                                                                               |
| W.                Morris Fine     | 39     | Executive                Vice President, Secretary and                Director                                     |

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**PART      II**

**ITEM      5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND      ISSUER PURCHASES OF EQUITY SECURITIES **

| **Plan                Category**             |   | **Number                of Securities to be Issued Upon Exercise of Outstanding                Options,****Warrants and Rights** |   | **Weighted                Average Price of Outstanding Options, Warrants****and Rights** |   | **Number                of Securities Remaining Available for Future Issuance Under Equity****Compensation                Plans** |
|----------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|
| Equity                compensation plans     |   | 82,001                                                                                                                           |   | $                20.50                                                                   |   | 239,860                                                                                                                           |
| approved                by shareholders      |   |                                                                                                                             |   |                                                                                     |   |                                                                                                                              |
|                                         |   |                                                                                                                             |   |                                                                                     |   |                                                                                                                              |
| Equity                compensation plans not |   | —                                                                                                                          |   | —                                                                                  |   | —                                                                                                                           |
| approved                by shareholders      |   |                                                                                                                             |   |                                                                                     |   |                                                                                                                              |
| Total                                        |   | 82,001                                                                                                                           |   | $                20.50                                                                   |   | 239,860                                                                                                                           |

**Issuer      Purchases of Equity Securities**

|  **Period**                              |   | **Total                Number of Shares****Purchased** |      | **Average                Price**** ****Paid                per Share** |   | **Total                Number of Shares Purchased as Part of Publicly****Announced                Plan** |   | **Maximum                Number of Shares that May Yet Be Purchased Under the****Plan** |      |
|-----------------------------------------------|--------|--------------------------------------------------------|-----------|-----------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|-----------|
| Beginning                of period            |   |                                              |      |                                                                   |   |                                                                                                |   |  407,829                                                                           |      |
| 10/01/05 –                10/31/05 |   |                                                   | —   |                                                                        |   | —                                                                                                  |   |                                                                                    | —   |   |   | 407,829 |   |
| 11/01/05 –                11/30/05 |   |                                                   | 312       |                                                                        | $      | 40.06                                                                                                    |   |                                                                                    | 312       |   |   | 407,517 |   |
| 12/01/05 –                12/31/05 |   |                                                   | 8,795     |                                                                        | $      | 42.67                                                                                                    |   |                                                                                    | 8,795     |   |   | 398,722 |   |
| Total:                                        |        |                                                   | **9,107** |                                                                        | **$**  | **42.58**                                                                                                |   |                                                                                    | **9,107** |   |   | **398,722** |   |

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| (1)   | For                  the quarter ended December 31, 2005, ITIC purchased an aggregate                  of                  9,107                  shares of the Company’s common stock pursuant to the purchase plan (the                  “Plan”) that was publicly announced on June 5,                  2000. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | In                  2000 and 2005, the Board of Directors of ITIC and ITC, respectively,                  approved the purchase by ITIC or ITC of up to an aggregate of 500,000                  shares of the Company’s common stock pursuant to the Plan. Subsequently,                  the Board approved the purchase of an additional 125,000 shares                  of the                  Company’s common stock pursuant to the Plan. Unless terminated earlier                  by                  resolution of the Board of Directors, the Plan will expire when                  ITIC or                  ITC has purchased all shares authorized for purchase                  thereunder. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | ITIC                  intends to make further purchases under this                  Plan. |
|-----------------|-------------------------------------------------------------------------------------------|

**ITEM        6. SELECTED FINANCIAL DATA**

**ITEM      7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS      OF      OPERATIONS**

**ITEM      7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**
** **

**ITEM      8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

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**ITEM      9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE**

**ITEM      9A. CONTROLS AND PROCEDURES**

**ITEM      9B. OTHER INFORMATION**

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**PART      III**

**ITEM      10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT**

**ITEM      11. EXECUTIVE COMPENSATION**

**ITEM      12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      STOCKHOLDER MATTERS**

**ITEM      13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS**

**ITEM      14. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

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**PART      IV**

**ITEM      15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**

|   | Consolidated                  Balance Sheets as of December 31, 2005 and 2004                                                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Consolidated                  Statements of Income for the Years Ended December 31, 2005, 2004                  and 2003                                      |
|   | Consolidated                  Statements of Stockholders' Equity for the Years Ended December                  31, 2005,                  2004 and 2003       |
|   | Consolidated                    Statements of Comprehensive Income for the Years Ended December                    31, 2005,                    2004 and 2003 |
|   | Consolidated                  Statements of Cash Flows for the Years Ended December 31, 2005,                  2004 and                  2003                 |
|   | Notes                  to Consolidated Financial Statements                                                                                                   |
|   | Report of                Independent                Registered Public Accounting Firm                                                                         |

| Schedule                Number | Description                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------|
| I                              | Summary                of Investments - Other Than Investments in Related                Parties |
| II                             | Condensed                Financial Information of Registrant                                     |
| III                            | Supplementary                Insurance Information                                               |
| IV                             | Reinsurance                                                                                      |
| V                              | Valuation                and Qualifying Accounts                                                 |

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**SIGNATURES**

|         |                                                                                                                                   |                                            |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
|         | **INVESTORS                  TITLE COMPANY**(Registrant)                                                                               |
|    |                                                                                                                              |                                       |
|         | By:                                                                                                                          | /s/                J.                Allen Fine |
|         | J.                  Allen Fine, Chairman and Chief Executive Officer                  *(Principal                  Executive Officer)* |
|         |                                                                                                                                   |

| /s/                J. Allen Fine                                                                                                                                                            |   | /s/                James R. Morton                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|
| J.                  Allen Fine, Chairman of the Board andChief                  Executive Officer *(Principal                  Executive Officer)*                                          |   | James                  R. Morton, Director             |
|                                                                                                                                                                                        |   |                                                        |
|                                                                                                                                                                                        |   |                                                        |
| /s/                James A. Fine, Jr                                                                                                                                                        |   | /s/                A. Scott Parker III                      |
| James                  A. Fine, Jr., President, Treasurer and Director                  *(Principal                  Financial Officer and**Principal                  Accounting Officer)* |   | A. Scott                Parker III,                Director |
|                                                                                                                                                                                        |   |                                                        |
|                                                                                                                                                                                        |   |                                                        |
| /s/                W. Morris Fine                                                                                                                                                           |   | /s/                H. Joe King, Jr.                         |
| W.                  Morris Fine, Executive Vice President,Secretary                  and Director                                                                                           |   | H. Joe King,                Jr.,                Director    |
|                                                                                                                                                                                        |   |                                                        |
| /s/                David L. Francis                                                                                                                                                         |   | /s/                R. Horace Johnson                        |
| David L.                Francis,                Director                                                                                                                                    |   | R.                  Horace Johnson, Director                |
|                                                                                                                                                                                        |   |                                                        |
|                                                                                                                                                                                        |   |                                                        |
| /s/                Loren B. Harrell, Jr.                                                                                                                                                    |   |                                                        |
| Loren B.                Harrell, Jr.,                Director                                                                                                                               |   |                                                        |

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**SCHEDULE        I**

| **INVESTORS                  TITLE COMPANY AND SUBSIDIARIES**                                            |
|----------------------------------------------------------------------------------------------------------|
| **SUMMARY                  OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED                  PARTIES** |
| **As                  of December 31, 2005**                                                             |

|                                                                       |   |        |       |                              |   |                                   |   |
|----------------------------------------------------------------------------|--------|-------------|------------|-----------------------------------|--------|----------------------------------------|--------|
|                                                                       |   |        |       |                              |   | **Amount                  at**         |   |
|                                                                       |   |        |       |                              |   | **which                  shown**       |   |
|                                                                       |   |        |       |                              |   | **in                  the**            |   |
| **Type                  of Investment**                                    |   | **Cost(1)** |       | **Market                  Value** |   | **Balance                  Sheet (2)** |   |
|                                                                       |   |        |       |                              |   |                                   |   |
| **Fixed                  Maturities:**                                     |   |        |       |                              |   |                                   |   |
| **Bonds:**                                                                 |   |        |       |                              |   |                                   |   |
| **States,                  municipalities and political **subdivisions**** |   | $           | 69,544,666 |                                   | $      | 70,349,139                             |        | $ | 70,278,657 |   |
| **Public                  utilities**                                      |   |        | 199,785    |                              |   | 206,187                                |   |   | 206,187 |   |
| **All                  other corporate bonds**                             |   |        | 6,322,651  |                              |   | 6,636,206                              |   |   | 6,636,206 |   |
| **Short                  term investments**                                |   |        | 6,475,509  |                              |   | 6,475,509                              |   |   | 6,475,509 |   |
| **Certificates                  of deposit**                               |   |        | 782,225    |                              |   | 782,225                                |   |   | 782,225 |   |
| **Total                  fixed maturities**                                |   |        | 83,324,836 |                              |   | 84,449,266                             |   |   | 84,378,784 |   |
|                                                                       |   |        |       |                              |   |                                   |   |   |   |   |
| **Equity                  Securities:**                                    |   |        |       |                              |   |                                   |   |   |   |   |
| **Common                  Stocks:**                                        |   |        |       |                              |   |                                   |   |   |   |   |
| **Public                  utilities**                                      |   |        | 170,125    |                              |   | 302,292                                |   |   | 302,292 |   |
| **Banks,                  trust and insurance companies**                  |   |        | 100,991    |                              |   | 481,110                                |   |   | 481,110 |   |
| **Industrial,                  miscellaneous and all other**               |   |        | 5,032,206  |                              |   | 7,573,596                              |   |   | 7,573,596 |   |
| **Nonredeemable                  preferred stocks**                        |   |        | 918,025    |                              |   | 1,080,680                              |   |   | 1,080,680 |   |
| **Total                  equity securities**                               |   |        | 6,221,347  |                              |   | 9,437,678                              |   |   | 9,437,678 |   |
|                                                                       |   |        |       |                              |   |                                   |   |   |   |   |
| **Other                  Investments**                                     |   |        | 1,336,111  |                              |   |                                   |   |   | 1,336,111 |   |
| **Total                  investments per the consolidated balance sheet**  |   | $           | 90,882,294 |                              |   |                                   |   | $ | 95,152,573 |   |
|                                                                       |   |        |       |                              |   |                                   |   |   |   |   |

| (1)     | Fixed                  maturities are shown at amortized cost and equity securities are                  shown at                  original cost. |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)     | Bonds                  of states, municipalities and political subdivisions are shown                  at                  amortized cost for held-to-maturity bonds and                  fair value for available-for-sale bonds. Equity securities are                  shown at                  fair value. |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SCHEDULE      II**

**INVESTORS      TITLE COMPANY (PARENT COMPANY)**

**CONDENSED      FINANCIAL INFORMATION OF REGISTRANT**

**BALANCE      SHEETS**

**AS      OF DECEMBER 31, 2005 AND 2004**

|                                                                                                      |   | **2005** |       | **2004** |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------|------------|----------|--------|
| **Assets**                                                                                                |   |     |       |     |   |
| Cash                and cash equivalents                                                                  |   | $        | 1,755,372  |     | $      | 207,849 |   |
| Investments                in fixed maturities, available-for-sale                                        |   |     | 12,249,500 |     |   | 8,956,400 |   |
| Investments                in equity securities,                available-for-sale                        |   |     | 130,800    |     |   | - |   |
| Short                term investments                                                                     |   |     | 4,482      |     |   | 1,012,182 |   |
| Investments                in affiliated companies                                                        |   |     | 65,072,364 |     |   | 58,936,521 |   |
| Other                investments                                                                          |   |     | 919,486    |     |   | 819,936 |   |
| Other                receivables                                                                          |   |     | 204,258    |     |   | 237,798 |   |
| Deferred                income taxes, net                                                                 |   |     | -          |     |   | 33,189 |   |
| Income                taxes receivable                                                                    |   |     | 1,233,462  |     |   | 2,123,917 |   |
| Prepaid                expenses and other assets                                                          |   |     | 108,201    |     |   | 45,713 |   |
| Property,                net                                                                              |   |     | 3,256,978  |     |   | 2,085,822 |   |
|                                                                                                      |   |     |       |     |   |   |   |
| **Total                Assets**                                                                           |   | $        | 84,934,903 |     | $      | 74,459,327 |   |
|                                                                                                      |   |     |       |     |   |   |   |
| **Liabilities                and Stockholders' Equity**                                                   |   |     |       |     |   |   |   |
| **Liabilities:**                                                                                          |   |     |       |     |   |   |   |
| Accounts                payable and accrued liabilities                                                   |   | $        | 633,407    |     | $      | 1,952,056 |   |
| Deferred                income taxes, net                                                                 |   |     | 4,240      |     |   | - |   |
| Total                liabilities                                                                          |   |     | 637,647    |     |   | 1,952,056 |   |
|                                                                                                      |   |     |       |     |   |   |   |
| **Stockholders'                Equity:**                                                                  |   |     |       |     |   |   |   |
| Class                A Junior Participating preferred stock - no par value                                |   |     |       |     |   |   |   |
| (shares                authorized 100,000; no shares issued)                                              |   |     | -          |     |   | - |   |
| Common                stock-no par (shares authorized 10,000,000; 2,549,434                               |   |     |       |     |   |   |   |
| and                2,481,024 shares issued and outstanding 2005 and 2004,                                 |   |     |       |     |   |   |   |
| respectively,                excluding 297,783 and 374,720 shares 2005 and                                |   |     |       |     |   |   |   |
| 2004,                respectively, of common stock held by the Company's                subsidiary)       |   |     | 1          |     |   | 1 |   |
| Retained                earnings                                                                          |   |     | 81,477,022 |     |   | 69,272,092 |   |
| Accumulated                other comprehensive income (net                unrealized gain on investments) |   |     | 2,820,233  |     |   | 3,235,178 |   |
| Total                stockholders' equity                                                                 |   |     | 84,297,256 |     |   | 72,507,271 |   |
|                                                                                                      |   |     |       |     |   |   |   |
| **Total                Liabilities and Stockholders' Equity**                                             |   | $        | 84,934,903 |     | $      | 74,459,327 |   |

|                                                        |   |   |   |   |   |   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| See                notes to condensed financial statements. |   |   |   |   |   |   |   |

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**SCHEDULE        II**

**INVESTORS        TITLE COMPANY (PARENT COMPANY)**

**CONDENSED        FINANCIAL INFORMATION OF REGISTRANT**

**STATEMENTS        OF INCOME**

**FOR            THE            YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003**

|                                                              |   | **2005** |       | **2004** |   | **2003**   |   |
|-------------------------------------------------------------------|--------|----------|------------|----------|--------|------------|--------|
| **Revenues:**                                                     |   |     |       |     |   |       |   |
| Investment                  income-interest and dividends         |   | $        | 280,145    |     | $      | 124,421    |   | $ | 96,952 |   |
| Net                  realized gain (loss) on sales of investments |   |     | 18,464     |     |   | (12,500    | )      |   | - |   |
| Rental                  income                                    |   |     | 553,222    |     |   | 519,991    |   |   | 503,031 |   |
| Miscellaneous                  income                             |   |     | 70,147     |     |   | 69,274     |   |   | 11,000 |   |
| Total                                                             |   |     | 921,978    |     |   | 701,186    |   |   | 610,983 |   |
| **Operating                  Expenses:**                          |   |     |       |     |   |       |   |   |   |   |
| Office                  occupancy and operations                  |   |     | 299,388    |     |   | 285,903    |   |   | 242,861 |   |
| Business                  development                             |   |     | 51,110     |     |   | 42,953     |   |   | 31,098 |   |
| Taxes-other                  than payroll and income              |   |     | 90,004     |     |   | 75,649     |   |   | 65,461 |   |
| Professional                  fees                                |   |     | 68,245     |     |   | 60,161     |   |   | 52,758 |   |
| Other                  expenses                                   |   |     | 78,304     |     |   | 59,738     |   |   | 47,635 |   |
| Total                                                             |   |     | 587,051    |     |   | 524,404    |   |   | 439,813 |   |
|                                                              |   |     |       |     |   |       |   |   |   |   |
| **Equity                  in Net Income of Affiliated Cos.***     |   |     | 12,984,996 |     |   | 10,583,384 |   |   | 10,850,844 |   |
| **Income                  Before Income Taxes**                   |   |     | 13,319,923 |     |   | 10,760,166 |   |   | 11,022,014 |   |
| **Provision                  for Income Taxes**                   |   |     | 27,000     |     |   | 41,000     |   |   | 57,000 |   |
| **Net                  Income**                                   |   | $        | 13,292,923 |     | $      | 10,719,166 |   | $ | 10,965,014 |   |
| **Basic                  Earnings per Common Share**              |   | $        | 5.19       |     | $      | 4.29       |   | $ | 4.38 |   |
| **Weighted                  Average Shares Outstanding-Basic**    |   |     | 2,560,418  |     |   | 2,496,711  |   |   | 2,503,659 |   |
| **Diluted                  Earnings Per Common Share**            |   | $        | 5.10       |     | $      | 4.09       |   | $ | 4.18 |   |
| **Weighted                  Average Shares Outstanding-Diluted**  |   |     | 2,607,633  |     |   | 2,620,916  |   |   | 2,624,473 |   |
|                                                              |   |     |       |     |   |       |   |   |   |   |
|                                                              |   |     |       |     |   |       |   |   |   |   |
| *                  Eliminated in consolidation                    |   |     |       |     |   |       |   |   |   |   |
|                                                              |   |     |       |     |   |       |   |   |   |   |
| See                  notes to condensed financial statements.     |   |     |       |     |   |       |   |   |   |   |

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**SCHEDULE      II**

**INVESTORS      TITLE COMPANY (PARENT COMPANY)**

**CONDENSED          FINANCIAL INFORMATION OF REGISTRANT**

**STATEMENTS          OF CASH FLOWS**

**FOR        THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003**

|                                                                                                   |   | **2005** |        | **2004** |   | **2003**    |   |
|--------------------------------------------------------------------------------------------------------|--------|----------|-------------|----------|--------|-------------|--------|
| **Operating                Activities:**                                                               |   |     |        |     |   |        |   |
| Net                income                                                                              |   | $        | 13,292,923  |     | $      | 10,719,166  |   | $ | 10,965,014 |   |
| Adjustments                to reconcile net income to net cash provided                                |   |     |        |     |   |        |   |   |   |   |
| by                operating activities:                                                                |   |     |        |     |   |        |   |   |   |   |
| Equity                in net earnings of subsidiaries                                                  |   |     | (12,984,996 | )        |   | (10,583,384 | )      |   | (10,850,844 | ) |
| Depreciation                                                                                           |   |     | 80,129      |     |   | 73,452      |   |   | 70,944 |   |
| Amortization,                net                                                                       |   |     | (1,391      | )        |   | 5,719       |   |   | 10,602 |   |
| Net                realized (gain) loss on sales of investments                                        |   |     | (18,464     | )        |   | 12,500      |   |   | - |   |
| Provision                (benefit) for deferred income taxes                                           |   |     | 33,000      |     |   | 59,000      |   |   | (12,000 | ) |
| (Increase)                decrease in receivables                                                      |   |     | 33,540      |     |   | 1,519,069   |   |   | (1,446,089 | ) |
| (Increase)                decrease in income taxes receivable-current                                  |   |     | 890,455     |     |   | (796,461    | )      |   | (1,327,456 | ) |
| (Increase)                decrease in prepaid expenses                                                 |   |     | (62,488     | )        |   | (28,786     | )      |   | 2,714 |   |
| Increase                (decrease) in accounts payable and accrued liabilities                         |   |     | (290,719    | )        |   | (5,357      | )      |   | 454,097 |   |
| Decrease                in income taxes payable-current                                                |   |     | -           |     |   | -           |   |   | (232,325 | ) |
| Net                cash provided by (used in) operating activities                                     |   |     | 971,989     |     |   | 974,918     |   |   | (2,365,343 | ) |
|                                                                                                   |   |     |        |     |   |        |   |   |   |   |
| **Investing                Activities:**                                                               |   |     |        |     |   |        |   |   |   |   |
| Capital                contribution to subsidiaries                                                    |   |     | (1,178,000  | )        |   | (1,783,000  | )      |   | (325,000 | ) |
| Dividends                received from subsidiaries                                                    |   |     | 7,291,120   |     |   | 5,050,819   |   |   | 3,782,400 |   |
| Purchases                of available-for-sale securities                                              |   |     | (9,435,060  | )        |   | (19,518,900 | )      |   | (2,000,000 | ) |
| Purchases                of short term securities                                                      |   |     | -           |     |   | (1,012,182  | )      |   | - |   |
| Purchases                of and net earnings from other investments                                    |   |     | (150,000    | )        |   | -           |   |   | (486,000 | ) |
| Proceeds                from sales and maturities of available-for-sale securities                     |   |     | 6,024,040   |     |   | 13,267,500  |   |   | 250,000 |   |
| Proceeds                from sales of short term securities                                            |   |     | 1,007,700   |     |   | 2,494,742   |   |   | 1,486,879 |   |
| Proceeds                from sales and distributions from other investments                            |   |     | 68,915      |     |   | 9,187       |   |   | 42,072 |   |
| Purchases                of property                                                                   |   |     | (1,251,285  | )        |   | (50,326     | )      |   | (105,048 | ) |
| Net                change in pending trades                                                            |   |     | (1,027,929  | )        |   | 1,027,929   |   |   | - |   |
| Net                cash provided by (used in) investing activities                                     |   |     | 1,349,501   |     |   | (514,231    | )      |   | 2,645,303 |   |
|                                                                                                   |   |     |        |     |   |        |   |   |   |   |
| **Financing                Activities:**                                                               |   |     |        |     |   |        |   |   |   |   |
| Retirement                of common stock                                                              |   |     | (363,765    | )        |   | -           |   |   | - |   |
| Dividends                paid (net dividends paid to subsidiary of $46,717, $53,936                and |   |     |        |     |   |        |   |   |   |   |
| $42,278                in 2005, 2004 and 2003, respectively)                                           |   |     | (410,202    | )        |   | (374,425    | )      |   | (300,411 | ) |
| Net                cash used in financing activities                                                   |   |     | (773,967    | )        |   | (374,425    | )      |   | (300,411 | ) |
|                                                                                                   |   |     |             |     |   |             |   |   |  |   |
| **Net                Increase (Decrease) in Cash and Cash Equivalents**                                |   |     | 1,547,523   |     |   | 86,262      |   |   | (20,451 | ) |
| **Cash                and Cash Equivalents, Beginning of Year**                                        |   |     | 207,849     |     |   | 121,587     |   |   | 142,038 |   |
| **Cash                and Cash Equivalents, End of Year**                                              |   | $        | 1,755,372   |     | $      | 207,849     |   | $ | 121,587 |   |
|                                                                                                   |   |     |        |     |   |        |   |   |   |   |
| **Supplemental                Disclosures:**                                                           |   |     |        |     |   |        |   |   |   |   |
| **Cash                Paid During the Year For:**                                                      |   |     |        |     |   |        |   |   |   |   |
| Income                Taxes                                                                            |   | $        | 896,000     |     | $      | 781,000     |   | $ | 1,639,000 |   |
|                                                                                                   |   |     |        |     |   |        |   |   |   |   |
|                                                                                                   |   |     |        |     |   |        |   |   |   |   |
|                                                                                                   |   |     |        |     |   |        |   |   |   |   |
| See                notes to condensed financial statements.                                            |   |     |        |     |   |        |   |   |   |   |

----

**SCHEDULE        II**

**INVESTORS        TITLE COMPANY AND SUBSIDIARIES**

****CONDENSED        FINANCIAL INFORMATION OF REGISTRANT****

**NOTES        TO THE CONDENSED FINANCIAL STATEMENTS**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |     |   |      |   |     |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|----------|--------|-----------|--------|----------|-----------|
| 1.                  The                  accompanying condensed financial statements should be read in conjunction                  with the consolidated financial statements and notes thereto of                  Investors                  Title Company and Subsidiaries.                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |     |   |      |   |     |      |
| 2.                  Cash                  dividends paid to Investors Title Company by its wholly owned subsidiaries                  were as follows:                                                                                                                                                                                                                                                                                                                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |     |   |      |   |     |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |     |   |      |   |     |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   | **2005** |   | **2004**  |   | **2003** |      |
| Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |     |   |      |   |     |      |
| Investors                  Title Insurance Company, net*                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |     | $      | 4,546,120 |   | $        | 3,950,819 |   | $ | 3,307,400 |   |
| Investors                  Title Exchange Corporation                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |     |   | 2,250,000 |   |     | 1,100,000 |   |   | 175,000 |   |
| Investors                  Title Accomodation Corporation                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |     |   | 195,000   |   |     |  --- |   |   | 100,000 |   |
| Investors                  Title Management Services, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |     |   | 275,000   |   |     |  --- |   |   | 200,000 |   |
| Investors                  Title Commercial Agency, LLC                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |     |   | 25,000    |   |     |  --- |   |   |  --- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |     |   |      |   |     |      |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |     | $      | 7,291,120 |   | $        | 5,050,819 |   | $ | 3,782,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |     |   |      |   |     |      |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |     |   |      |   |     |      |   |   |   |   |
| *                  Total                  dividends of $4,592,837,                  $4,004,755 and                  $3,349,678                  paid to the Parent Company in 2005,                  2004 and                  2003,                  respectively, netted with dividends of $46,717,                  $53,936 and $42,278                  received from the Parent in 2005,                  2004 and                  2003,                  respectively. |   |

----

**SCHEDULE      III**

| **INVESTORS                  TITLE COMPANY AND SUBSIDIARIES**                              |
|--------------------------------------------------------------------------------------------|
| **SUPPLEMENTARY                  INSURANCE INFORMATION**                                   |
| **For                  the Years Ended December 31, 2005, 2004 and                  2003** |

|                                   |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |
|----------------------------------------|--------|-----------------|--------|-------------------------------|--------|--------------|--------|--------------|--------|-------------|--------|----------------|--------|---------------------------------|------------|----------------------------------|--------|---------------|--------|--------------|-----------|
|                                   |   |            |   | **Future**                    |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |
|                                   |   |            |   | **Policy**                    |   |         |   | **Other**    |   |        |   |           |   |                            |       |                             |   |          |   |         |      |
|                                   |   |            |   | **Benefits,**                 |   |         |   | **Policy**   |   |        |   |           |   | **Benefits**                    |       | **Amortization**                 |   |          |   |         |      |
|                                   |   | **Deferred**    |   | **Losses,**                   |   |         |   | **Claims**   |   |        |   |           |   | **Claims,**                     |       | **of                  Deferred** |   |          |   |         |      |
|                                   |   | **Policy**      |   | **Claims**                    |   |         |   | **and**      |   |        |   | **Net**        |   | **Losses                  and** |       | **Policy**                       |   | **Other**     |   |         |      |
|                                   |   | **Acquisition** |   | **and                  Loss** |   | **Unearned** |   | **Benefits** |   | **Premium** |   | **Investment** |   | **Settlement**                  |       | **Acquisition**                  |   | **Operating** |   | **Premiums** |      |
| **Segment**                            |   | **Cost**        |   | **Expenses**                  |   | **Premiums** |   | **Payable**  |   | **Revenue** |   | **Income**     |   | **Expenses**                    |       | **Costs**                        |   | **Expenses**  |   | **Written**  |      |
|                                   |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |
| **Year                  Ended**        |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |
| **December                  31, 2005** |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |
| **Title                  Insurance**   |   |            | ---    |                          | $      | 34,857,000   |   |         | ---    |        | $      | 442,098        |   | $                               | 76,522,266 |                             | $      | 2,993,149     |   | $            | 8,164,783 |   |   | --- |   | $ | 57,850,106 |   |   | N/A |   |
| **Exchange                  Services** |   |            | ---    |                          |   | ---          |   |         | ---    |        |   | ---            |   |                            | ---        |                             |   | 18,463        |   |         | ---       |   |   | --- |   |   | 907,414 |   |   | N/A |   |
| **All                  Other**         |   |            | ---    |                          |   | ---          |   |         | ---    |        |   | ---            |   |                            | ---        |                             |   | 324,155       |   |         | ---       |   |   | --- |   |   | 2,358,652 |   |   | N/A |   |
|                                   |   |            | ---    |                          | $      | 34,857,000   |   |         | ---    |        | $      | 442,098        |   | $                               | 76,522,266 |                             | $      | 3,335,767     |   | $            | 8,164,783 |   |   | --- |   | $ | 61,116,172 |   |   |   |   |
|                                   |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |   |   |   |   |   |   |   |   |   |   |
| **Year                  Ended**        |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |   |   |   |   |   |   |   |   |   |   |
| **December                  31, 2004** |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |   |   |   |   |   |
| **Title                  Insurance**   |   |            | ---    |                          | $      | 31,842,000   |   |         | ---    |        | $      | 551,662        |   | $                               | 71,843,445 |                             | $      | 2,597,355     |   | $            | 7,984,339 |   |   | --- |   | $ | 53,456,152 |   |   | N/A |   |
| **Exchange                  Services** |   |            | ---    |                          |   | ---          |   |         | ---    |        |   | ---            |   |                            | ---        |                             |   | 7,821         |   |         | ---       |   |   | --- |   |   | 640,183 |   |   | N/A |   |
| **All                  Other**         |   |            | ---    |                          |   | ---          |   |         | ---    |        |   | ---            |   |                            | ---        |                             |   | 147,662       |   |         | ---       |   |   | --- |   |   | 2,258,336 |   |   | N/A |   |
|                                   |   |            | ---    |                          | $      | 31,842,000   |   |         | ---    |        | $      | 551,662        |   | $                               | 71,843,445 |                             | $      | 2,752,838     |   | $            | 7,984,339 |   |   | --- |   | $ | 56,354,671 |   |   |   |   |
|                                   |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |   |   |   |   |   |   |   |   |   |   |
| **Year                  Ended**        |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |   |   |   |   |   |   |   |   |   |   |
| **December                  31, 2003** |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |   |   |   |   |   |
| **Title                  Insurance**   |   |            | ---    |                          | $      | 30,031,000   |   |         | ---    |        | $      | 726,191        |   | $                               | 83,944,955 |                             | $      | 2,589,228     |   | $            | 9,292,739 |   |   | --- |   | $ | 63,495,050 |   |   | N/A |   |
| **Exchange                  Services** |   |            | ---    |                          |   | ---          |   |         | ---    |        |   | ---            |   |                            | ---        |                             |   | 2,818         |   |         | ---       |   |   | --- |   |   | 495,119 |   |   | N/A |   |
| **All                  Other**         |   |            | ---    |                          |   | ---          |   |         | ---    |        |   | ---            |   |                            | ---        |                             |   | 99,641        |   |         | ---       |   |   | --- |   |   | 1,375,949 |   |   | N/A |   |
|                                   |   |            | ---    |                          | $      | 30,031,000   |   |         | ---    |        | $      | 726,191        |   | $                               | 83,944,955 |                             | $      | 2,691,687     |   | $            | 9,292,739 |   |   | --- |   | $ | 65,366,118 |   |   |   |   |
|                                   |   |            |   |                          |   |         |   |         |   |        |   |           |   |                            |       |                             |   |          |   |         |      |   |   |   |   |   |   |   |   |   |   |

----

**SCHEDULE      IV**

**INVESTORS        TITLE COMPANY AND SUBSIDIARIES **

**REINSURANCE**

**For        the Years Ended December 31, 2005, 2004 and 2003**

|                                   |   | **Gross****Amount** | ** ** | **Ceded                      to****Other****Companies** | ** ** | **Assumed                      from****Other****Companies** | ** ** | **Net****Amount** | ** ** | **Percentage                      of****Amount****Assumed                  to                  Net** |   |
|----------------------------------------|--------|---------------------|------------|---------------------------------------------------------|------------|-------------------------------------------------------------|------------|-------------------|------------|------------------------------------------------------------------------------------------------------|--------|
|                                   |   |                |       |                                                    |       |                                                        |       |              |       |                                                                                                 |   |
| **YEAR                  ENDED**        |   |                |       |                                                    |       |                                                        |       |              |       |                                                                                                 |   |
| **DECEMBER                  31, 2005** |   |                |       |                                                    |       |                                                        |       |              |       |                                                                                                 |   |
| **Title                  Insurance**   |   | $                   | 76,817,423 |                                                    | $          | 316,133                                                     |       | $                 | 20,976     |                                                                                                 | $      | 76,522,266 |   |   | 0.03 | % |
|                                   |   |                |       |                                                    |       |                                                        |       |              |       |                                                                                                 |   |   |   |   |   |   |
| **YEAR                  ENDED**        |   |                |       |                                                    |       |                                                        |       |              |       |                                                                                                 |   |   |   |   |   |   |
| **DECEMBER                  31, 2004** |   |                |       |                                                    |       |                                                        |       |              |       |                                                                                                 |   |   |   |   |   |   |
| **Title                  Insurance**   |   | $                   | 72,132,121 |                                                    | $          | 294,639                                                     |       | $                 | 5,963      |                                                                                                 | $      | 71,843,445 |   |   | 0.01 | % |
|                                   |   |                |       |                                                    |       |                                                        |       |              |       |                                                                                                 |   |   |   |   |   |   |
| **YEAR                  ENDED**        |   |                |       |                                                    |       |                                                        |       |              |       |                                                                                                 |   |   |   |   |   |   |
| **DECEMBER                  31, 2003** |   |                |       |                                                    |       |                                                        |       |              |       |                                                                                                 |   |   |   |   |   |   |
| **Title                  Insurance**   |   | $                   | 84,376,953 |                                                    | $          | 438,229                                                     |       | $                 | 6,231      |                                                                                                 | $      | 83,944,955 |   |   | 0.01 | % |

----

**SCHEDULE        V**

**INVESTORS        TITLE COMPANY AND SUBSIDIARIES**

**VALUATION        AND QUALIFYING **
****ACCOUNTS****

**For          the          Years Ended December 31, 2005, 2004 and 2003**

|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |
|----------------------------------------------|--------|----------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------|--------------------------------------------------------------------------------|--------|
| **Description**                              |   | **Balance                    at****Beginning****of                Period** |       | **Additions                  Charged                  to****Costs                and                Expenses** |   | **Additions                    Charged****to                  Other****Accounts                - Describe** |   | **Deductions-****describe*** |   |   | ** ** | **Balance                  at****End                of                Period** |   |
|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |
| **2005**                                     |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |
| **Premiums                Receivable**       |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |
| **Valuation                Provision**       |   | $                                                                          | 2,240,000  |                                                                                                           | $      | 5,399,734                                                                                                   |   | $                            | -      |   | $          | (5,195,734                                                                     | )      |   | (a) |   | $ | 2,444,000 |   |
|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
| **Reserves                  for **Claims**** |   | $                                                                          | 31,842,000 |                                                                                                           | $      | 8,164,783                                                                                                   |   | $                            | -      |   | $          | (5,149,783                                                                     | )      |   | (b) |   | $ | 34,857,000 |   |
|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
| **2004**                                     |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
| **Premiums                Receivable**       |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
| **Valuation                Provision**       |   | $                                                                          | 2,474,000  |                                                                                                           | $      | 5,745,114                                                                                                   |   | $                            | -      |   | $          | (5,979,114                                                                     | )      |   | (a) |   | $ | 2,240,000 |   |
|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
| **Reserves                  for **Claims**** |   | $                                                                          | 30,031,000 |                                                                                                           | $      | 7,984,339                                                                                                   |   | $                            | -      |   | $          | (6,173,339                                                                     | )      |   | (b) |   | $ | 31,842,000 |   |
|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
| **2003**                                     |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
| **Premiums                Receivable**       |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
| **Valuation                Provision**       |   | $                                                                          | 1,800,000  |                                                                                                           | $      | 6,222,767                                                                                                   |   | $                            | -      |   | $          | (5,548,767                                                                     | )      |   | (a) |   | $ | 2,474,000 |   |
|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |
| **Reserves                  for **Claims**** |   | $                                                                          | 25,630,000 |                                                                                                           | $      | 9,292,739                                                                                                   |   | $                            | -      |   | $          | (4,891,739                                                                     | )      |   | (b) |   | $ | 30,031,000 |   |
|                                         |   |                                                                       |       |                                                                                                           |   |                                                                                                        |   |                         |   |   |       |                                                                           |   |   |   |   |   |   |   |

**(a)        Cancelled premiums**

**(b)          Payments of claims, net of recoveries**

----

**INDEX      TO EXHIBITS**

| Exhibit       |                                                                                                                                                                                                                                                                                                                                                                                              |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number        | Description                                                                                                                                                                                                                                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 3(i)          | Articles                of Incorporation dated January 22, 1973, incorporated by reference                to                Exhibit 1 to Form 10 dated June 12, 1984                                                                                                                                                                                                                              |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 3(ii)         | Bylaws –                Restated and Amended as of May 21, 2003, incorporated by reference                to                Exhibit 3(ii) to Form 10-K for the year ended December 31,                2003                                                                                                                                                                             |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 4   | Rights                Agreement, dated as of November 12, 2002, between Investors Title                Company                and Central Carolina Bank, a division of National Bank of Commerce,                incorporated by reference to Exhibit 1 to Form 8-A filed November                15,                2002                                                                         |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 10(i)         | 1997                Stock Option and Restricted Stock Plan, incorporated by reference                to                Exhibit 10(viii) to Form 10-K for the year ended December 31,                1996                                                                                                                                                                                          |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 10(ii)        | Form                of Nonqualified Stock Option Agreement to Non-employee Directors                dated May                13, 1997 under the 1997 Stock Option and Restricted Stock Plan,                incorporated by reference to Exhibit 10(ix) to Form 10-Q for the                quarter                ended June 30, 1997                                                            |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 10(iii)       | Form                of Nonqualified Stock Option Agreement under 1997 Stock Option and                Restricted Stock Plan, incorporated by reference to Exhibit 10(x)                to Form                10-K for the year ended December 31, 1997                                                                                                                                           |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 10(iv)        | Form                of Incentive Stock Option Agreement under 1997 Stock Option and Restricted                Stock Plan, incorporated by reference to Exhibit 10(xi) to Form 10-K                for                the year ended December 31, 1997                                                                                                                                             |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 10(v)         | Form                of Amendment to Incentive Stock Option Agreement between Investors                Title                Company and James Allen Fine, James Allen Fine, Jr., William Morris                Fine,                George Abbitt Snead, respectively, incorporated by reference to Exhibit                10(xii) to Form 10-Q for the quarter ended June 30,                2000 |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 10(vi)        | 2001                Stock Option and Restricted Stock Plan, incorporated by reference                to                Exhibit 10(xiii) to Form 10-K for the year ended December 31,                2000                                                                                                                                                                                          |
|          |                                                                                                                                                                                                                                                                                                                                                                                              |
| 10(vii)       | Form                of Employment Agreement dated November 17, 2003 with each of J. Allen                Fine, James A. Fine, Jr. and W. Morris Fine, incorporated by reference                to                Exhibit 10(ix) to Form 10-K for the year ended December 31,                2003                                                                                                  |

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| 10(viii)              | Amended                and Restated Employment Agreement dated June 1, 2004 with J. Allen                Fine,                incorporated by reference to Exhibit 10(x) to Form 10-Q for the quarter                ended June 30, 2004                                                                        |
|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                                                                                                                                                                            |
| 10(ix)                | Form                of Amended and Restated Employment Agreement dated June 1, 2004 with                each                of James A. Fine, Jr. and W. Morris Fine, incorporated by reference                to                Exhibit 10(xi) to Form 10-Q for the quarter ended June 30,                2004 |
|                  |                                                                                                                                                                                                                                                                                                            |
| 10(x)                 | Nonqualified                Deferred Compensation Plan dated June 1, 2004, incorporated by reference                to Exhibit 10(xii) to Form 10-Q for the quarter ended June 30,                2004                                                                                                          |
|                  |                                                                                                                                                                                                                                                                                                            |
| 10(xi)                | Nonqualified                Supplemental Retirement Benefit Plan dated November 17, 2003, incorporated                by reference to Exhibit 10(xiii) to Form 10-Q for the quarter ended                June                30, 2004                                                                           |
|                  |                                                                                                                                                                                                                                                                                                            |
| 10(xii)               | Death                Benefit Plan Agreement dated April 1, 2004 with J. Allen Fine,                incorporated by reference to Exhibit 10(xiv) to Form 10-Q for the                quarter                ended June 30, 2004                                                                                  |
|                  |                                                                                                                                                                                                                                                                                                            |
| 10(xiii)              | Death                Benefit Plan Agreement dated May 19, 2004 with James A. Fine, Jr.,                incorporated by reference to Exhibit 10(xv) to Form 10-Q for the                quarter                ended June 30, 2004                                                                               |
|                  |                                                                                                                                                                                                                                                                                                            |
| 13                    | Portions                of 2005 Annual Report to Shareholders incorporated by reference in                this                report as set forth in Parts I, II and IV hereof                                                                                                                                  |
|                  |                                                                                                                                                                                                                                                                                                            |
| 14                    | Code                of Business Conduct and Ethics, incorporated by reference to Exhibit                14 to                Form 10-K for the year ended December 31, 2003                                                                                                                                     |
|                  |                                                                                                                                                                                                                                                                                                            |
| 16                    | Letter                regarding Change in Certifying Accountant, incorporated by reference                to                Exhibit 16 to Form 8-K dated September 24, 2004                                                                                                                                     |
|                  |                                                                                                                                                                                                                                                                                                            |
| 21                    | Subsidiaries                of Registrant, incorporated by reference to Exhibit 21 to Form 10-K                for                the year ended December 31, 2003                                                                                                                                              |
|                  |                                                                                                                                                                                                                                                                                                            |
| 23                (a) | Consent                of Dixon Hughes PLLC                                                                                                                                                                                                                                                                     |
|                  |                                                                                                                                                                                                                                                                                                            |
| 23                (b) | Consent                of Deloitte & Touche LLP                                                                                                                                                                                                                                                             |
|                  |                                                                                                                                                                                                                                                                                                            |
| 31(i)                 | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                                                                                                                                |
|                  |                                                                                                                                                                                                                                                                                                            |
| 31(ii)                | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                                                                                                                                |
|                  |                                                                                                                                                                                                                                                                                                            |
| 32                    | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                Section                906 of the Sarbanes-Oxley Act of                2002                                                                                                                      |

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