Escrow & Title
In Rhode Island, a 'lender's title insurance policy' protects:
AThe buyer against title defects
BThe lender's interest in the property against title defects✓ Correct
CBoth buyer and lender equally
DThe real estate agent if the sale falls through
Explanation
A lender's title insurance policy (loan policy) protects the lender's security interest in the property. A separate owner's title insurance policy is needed to protect the buyer's ownership interest.
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