Property OwnershipIntermediateDelaware Exam

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

ASimply the routine substitution of a new owner only after a completed foreclosure sale, as a general rule
BThe insurer's right to step into the insured's position and sue the party responsible for a title lossCorrect
CThe assignment of a mortgage to a new lender
DThe transfer of an owner's policy to a new buyer

Why The insurer's right to step into the insured's position and sue the party responsible for a title loss Is Correct

Answer B: The insurer's right to step into the insured's position and sue the party responsible for a title loss

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.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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