Escrow & Title
What is 'subrogation' in title insurance?
AThe process of subordinating a lien to a new mortgage
BThe right of the title insurer, after paying a claim, to step into the insured's shoes and pursue the party responsible for the title defect to recover the amount paid✓ Correct
CThe process of substituting one title insurance company for another
DThe requirement for a sub-agent to obtain their own title insurance
Explanation
Subrogation is the title insurer's right, after paying an insurance claim, to step into the insured's position and pursue legal remedies against the party who caused the title defect. For example, if a forged deed caused a loss and the insurer pays the claim, the insurer can then sue the forger to recover its payment.
Related Delaware Escrow & Title Questions
- What is a 'mechanic's lien' filing deadline in Delaware?
- What is the difference between 'actual notice' and 'constructive notice' in Delaware real property law?
- What is a 'title commitment' (also called a title binder or preliminary title report) in Delaware?
- What is a 'survey exception' in a Delaware title insurance policy?
- What is a 'FIRPTA withholding' requirement in Delaware real estate transactions?
- What is a 'deed of trust' and how does it differ from a traditional mortgage in Delaware?
- What is an 'escrow holdback' in a Delaware real estate closing?
- What is a 'deed restriction release' in Delaware?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →