Escrow & Title

A 'waiver of subrogation' in a Pennsylvania title insurance policy means:

AThe insurer waives the right to collect the premium
BAfter paying a claim, the title company waives its right to sue the party who caused the title defect✓ Correct
CThe insured waives the right to file claims
DThe title company waives the endorsement requirement

Explanation

Subrogation gives an insurer who pays a claim the right to step into the insured's shoes and sue the party that caused the loss. A waiver of subrogation in a title policy means the title company agrees not to pursue the party who caused the title defect after paying the insured's claim.

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