Escrow & TitleIntermediateArizona Exam

Arizona title insurance does NOT cover losses arising from:

AForged deeds in the chain of title
BUndisclosed heirs claiming an interest
CMatters known to the insured and not disclosed to the insurerCorrect
DClerical errors in recording

Why Matters known to the insured and not disclosed to the insurer Is Correct

Answer C: Matters known to the insured and not disclosed to the insurer

Title insurance policies exclude from coverage matters known to the insured (buyer/owner) at the time of the policy that were not disclosed to the title insurer. Known but undisclosed defects are not covered.

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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