Escrow & Title
A Kentucky title insurance company that receives a claim must:
APay the claim immediately without investigation
BInvestigate the claim and defend or pay based on the policy coverage✓ Correct
CNotify KREC of the claim within 10 days
DRequire the insured to resolve the matter before the insurer becomes involved
Explanation
When a title insurance claim is filed, the title insurer must investigate and either defend the insured's title (through legal proceedings if necessary) or pay the covered loss up to the policy amount. The insurer has a duty to defend and/or indemnify as provided in the policy.
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