Escrow & Title
A title company that issues a title insurance policy must maintain which type of financial reserve?
ANo reserves are required for title companies in Illinois
BStatutory reserves to ensure they can pay future claims on outstanding policies✓ Correct
CReserves equal to 100% of all policies issued
DReserves held by the county recorder on behalf of all title companies
Explanation
Title insurance companies are required by insurance regulations to maintain statutory reserves sufficient to pay anticipated claims on outstanding policies. Illinois regulates title companies through the Illinois Department of Insurance to ensure they have adequate financial resources to honor their insurance commitments.
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