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

Practice More Arkansas Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Arkansas Quiz →