Which of the Following Statements About Title Insurance Is True

question 28

Multiple Choice

Which of the following statements about title insurance is true?

• A)A premium must be paid annually to keep the policy in force.
• B)The policy term runs for 20 years or the length of the insured's mortgage loan,whichever is shorter.
• C)The policy guarantees that the owner will keep possession of the property if a defect in the title is discovered.
• D)The policy provides protection against title defects occur prior to the effective date of the policy.

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Definitions:

Total Cost

The total amount of money spent on creating goods or services, encompassing both constant and fluctuating expenses.

Implicit Cost

Represents the opportunity costs of using resources owned by the firm for its own production processes, without direct payment.

Interest Income

The income earned from lending funds or investing in interest-bearing financial instruments, such as saving accounts, bonds, or loans.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs related to production.