Escrow & Title

A title insurance company in Connecticut that discovers a prior unrecorded easement after issuing a policy must:

ARetroactively increase the premium
BHonor the policy and compensate the insured for covered losses due to the easement✓ Correct
CCancel the policy
DRefer the matter to the Commission

Explanation

Title insurance is designed to protect against exactly this type of defect—an undiscovered easement existing before the policy date. The insurer must honor the policy and indemnify the insured for covered losses.

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