Escrow & Title
A Mississippi title insurance company discovers a flaw in the title after issuing the owner's policy. The company's obligation is to:
ANotify the owner but take no further action
BDefend the insured against claims arising from the covered defect and pay losses up to the policy limit✓ Correct
CCancel the policy and refund the premium
DReport the defect to MREC
Explanation
Title insurance obligates the insurer to defend the insured against covered title claims and to compensate for losses up to the policy amount. This is the fundamental purpose of the title insurance policy.
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