Escrow & Title
Subrogation in title insurance means the title insurer:
ATransfers the policy to a new owner
BAssumes the insured's rights to pursue the party responsible for the title defect after paying a claim✓ Correct
CIssues a new policy each time the property is sold
DProvides coverage for physical damage to the property
Explanation
Subrogation allows the title insurer, after paying a claim, to step into the insured's shoes and pursue any party responsible for the title defect to recover the amount paid.
Related Arkansas Escrow & Title Questions
- The purpose of a power of attorney in real estate closing is to:
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