Title insurance is unique in the world of insurance. It indemnifies a policyholder for losses caused by defects in the title found to have existed on the date of the policy.Education & Training
As a result of its unique nature, title insurance is often misunderstood, which can lead to lengthy, costly litigation and difficulty settling cases.
Title insurance is not casualty insurance, thus it is also difficult to reconcile with the claims handling parameters of many bad faith insurance statutes that place time limits on insurers.
Title insurance policies provide many options to an insurer for resolution of a claim; many of these options are at times difficult to reconcile with bad faith statutes.
This article will discuss the basics of what title insurance is and how to navigate the claims handling process to avoid bad faith traps.