Property Ownership

What is 'subrogation' in a Delaware title insurance context?

AThe substitution of a new owner after a foreclosure sale
BThe insurer's right to step into the insured's position and sue the party responsible for a title loss✓ Correct
CThe assignment of a mortgage to a new lender
DThe transfer of an owner's policy to a new buyer

Explanation

Subrogation allows the title insurance company, after paying a claim, to step into the insured's legal position and sue the party responsible for the title defect to recover the amount paid.

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