Escrow & Title

What is 'equitable subrogation' in Rhode Island title insurance?

AThe buyer's right to step into the seller's position
BThe title insurer's right to stand in the insured's position to recover losses from those responsible for a title defect after paying a claim✓ Correct
CThe substitution of one form of title insurance for another
DThe transfer of a mortgage from one lender to another

Explanation

Equitable subrogation gives the title insurer the right to step into the insured's legal position after paying a claim and pursue recovery from the parties responsible for the title defect.

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