Escrow & TitleIntermediateAlaska Exam

In Alaska, which type of title insurance policy protects the buyer from title defects that existed before the policy date?

ALender's policy only, in general
BOwner's title insurance policyCorrect
CHazard insurance
DE&O insurance

Why Owner's title insurance policy Is Correct

Answer B: Owner's title insurance policy

An owner's title insurance policy protects the buyer from financial losses due to covered title defects that existed as of the date of the policy. It continues for as long as the owner holds title and is a one-time premium paid at closing.

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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