Escrow & Title
What is 'subrogation' in the context of Rhode Island title insurance?
AThe process of subordinating a junior lien
BThe right of the title insurance company to step into the insured's position and pursue claims against third parties after paying a loss✓ Correct
CA title search conducted by a junior title company
DThe cancellation of a title insurance policy
Explanation
Subrogation gives the title insurer, after paying a claim to the insured, the right to pursue any third party who caused the loss. This allows the insurer to recover what it paid from the responsible party.
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