Escrow & Title

A Wisconsin lender's title insurance policy (mortgagee's policy) decreases in value as:

AThe property appreciates
BThe loan balance is paid down✓ Correct
CMarket interest rates rise
DTime passes without a claim

Explanation

A lender's title insurance policy protects the lender up to the outstanding loan balance; as the mortgage is paid down, the coverage amount (and lender's risk exposure) decreases accordingly.

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