Escrow & Title
In South Dakota, 'title insurance' is distinguished from other insurance products because:
AIt protects against future risks rather than past events
BIt protects against losses from past events (pre-existing title defects) not discovered in the title search, rather than future risks✓ Correct
CIt must be renewed annually like homeowner's insurance
DIt is issued by the government rather than private companies
Explanation
Title insurance is unique in that it protects against losses from events that already occurred (defects existing in the title before the policy date), unlike other insurance that protects against future risks. It is a one-time premium for the lender's policy (as long as the loan is outstanding) or indefinitely for the owner's policy.
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