Escrow & Title
In South Carolina, what is a 'title guaranty' versus 'title insurance'?
AThey are identical products
BTitle guaranty is a contract to pay damages if title fails; title insurance is a contract to defend and indemnify against covered claims✓ Correct
CTitle guaranty is issued by the state government; title insurance is private
DTitle insurance is more expensive but provides less coverage
Explanation
Title guaranty is an older concept of guaranteeing title validity. Modern title insurance is a contract of indemnity — the insurer agrees to defend the insured against covered title claims and pay losses. Title insurance is prospective and proactive in defense.
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