Escrow & Title

Subrogation in title insurance means:

AThe insured pays the deductible before the insurer pays
BAfter paying a claim, the insurer steps into the insured's shoes to recover from the responsible party✓ Correct
CThe lender's policy substitutes for the owner's policy
DThe insurance company assigns the policy to a new owner

Explanation

Subrogation allows the title insurance company, after paying a claim to the insured, to stand in the insured's place and pursue recovery against the party responsible for the title defect.

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