Escrow & TitleIntermediateAlaska Exam

A title insurance policy that protects the lender's interest is called a:

AOwner's policy
BLender's (mortgagee's) policyCorrect
CStandard coverage policy
DHomebuyer's warranty policy, in general

Why Lender's (mortgagee's) policy Is Correct

Answer B: Lender's (mortgagee's) policy

A lender's (mortgagee's) title insurance policy protects the lender against losses from title defects up to the loan amount. It does not protect the buyer's equity.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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