Escrow & Title

Subrogation in a title insurance context allows the title insurer to:

ADeny a claim without explanation
BStep into the insured's shoes and pursue legal remedies against the party responsible for the title defect after paying a claim✓ Correct
CTransfer the policy to a new owner
DReduce the policy amount each year

Explanation

Subrogation allows the title insurer, after paying a claim, to pursue the party who caused the title defect (such as a fraudster or negligent attorney) to recover the amount paid.

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