Escrow & Title

In South Dakota, a title insurance policy exclusion for 'matters known to the insured but not disclosed to the company' means:

AThe policy doesn't cover title defects that the buyer knew about before purchasing but didn't tell the title company✓ Correct
BAll defects known by anyone in the county are excluded
CThe seller's knowledge of defects is excluded from coverage
DOnly newly discovered defects are covered

Explanation

Title insurance policies exclude known defects that the insured was aware of before the policy was issued but failed to disclose to the title company. Concealing known defects from the title company voids coverage.

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