Escrow & Title
What is 'subrogation' in title insurance, and how does it protect the insurer?
AThe insurer's right to take over the insured's claim and pursue the responsible party to recover funds paid✓ Correct
BThe insurer's right to charge higher premiums after a claim
CThe insurer's right to transfer the policy to a new owner
DThe insurer's right to deny a claim based on a known defect
Explanation
After paying a title insurance claim, the insurer is subrogated to the insured's rights — meaning the insurer steps into the insured's legal shoes to pursue the responsible party (e.g.
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