A lender's title insurance policy terminates under which circumstances?

A lender's title insurance policy terminates

Multiple choice — select the best answer

AA home equity line of credit is taken against the property.
BThe mortgagor dies.
CThe mortgagee dies.
DThe mortgage debt is paid in full.

✓ Correct answer: D. The mortgage debt is paid in full. Title insurance provides protection against losses arising from defects in the title to a specified piece of real property. The majority of title insurance policies are designed to cover the lender, and the policy terminates upon full repayment of the mortgage debt. Owner's title insurance policies also exist to shield the property owner from title defects.

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