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Exam PA-Title-Insurance-Agent Topic 1 Question 27 Discussion

Actual exam question for Insurance Licensing's PA-Title-Insurance-Agent exam
Question #: 27
Topic #: 1
Under the terms of a title insurance policy, when a disputed claim is decided by a neutral third party, the process is called

Suggested Answer: D Vote an answer

When a disputed claim is decided by a neutral third party outside the ordinary court process, the process is arbitration. Litigation means resolving the dispute in court. Subrogation is the insurer's right, after paying a covered loss, to step into the insured's position and pursue responsible parties or recover priority rights.
Indemnification is the insurer's promise to compensate the insured for covered loss, not the dispute-resolution method. Title policies contain conditions that govern notice of claim, defense, settlement, payment, subrogation, and dispute resolution. Therefore, the neutral third-party decision process is arbitration. The Pennsylvania title outline tests title policy conditions and stipulations, insuring provisions, covered risks, and claim-related policy structure.

by Arabela at Jul 10, 2026, 01:37 AM

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