Escrow & Title
An 'exception' in a title insurance policy is a matter that:
AIs covered by the policy
BIs excluded from coverage — the policy does not insure against that specific matter✓ Correct
CMust be resolved before the policy is issued
DTriggers an automatic claim payment
Explanation
Title insurance exceptions are specific items listed in the policy that are excluded from coverage. Common exceptions include easements, covenants, and encumbrances found in the title search. The buyer accepts these known items as part of the title.
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