Escrow & Title
What is 'subrogation' in the context of title insurance in Idaho?
AThe division of title insurance premiums between buyer and seller
BThe title insurer's right to step into the insured's shoes and pursue any parties responsible for the title defect after paying a claim✓ Correct
CThe substitution of one insured for another
DThe process of subordinating a title policy to a mortgage
Explanation
Subrogation gives the title insurance company, after paying a claim, the right to pursue the party who caused the title defect (such as the prior owner who forged a deed). The insurer recovers its losses from the responsible party.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EasementA non-possessory right to use another person's land for a specific purpose.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
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