Escrow & Title
What is 'subrogation' in title insurance?
AThe substitution of one insurer for another
BThe right of the title insurer, after paying a claim, to step into the insured's shoes and pursue any legal claims against the party who caused the title defect✓ Correct
CThe process of adding additional coverage to a title policy
DThe cancellation of a title policy
Explanation
Subrogation gives the title insurance company the right to pursue, in the name of the insured, any legal remedies against third parties who caused the loss. After paying a claim, the insurer 'steps into the shoes' of the insured to recover the payout.
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