What is the approved manner in which a title insurer is supposed to write over, or insure through, record encumbrances or defects in title?

• A. By a specially filed endorsement
• B. By a general policy endorsement
• C. By a rider endorsement
• D. By an endorsement to ALTA lender's policy

Answer: (A)

In title insurance, coverage is tailored by endorsements attached to the policy. When a recorded encumbrance or title defect needs to be insured through, the insurer uses a specially filed endorsement. These endorsements are approved forms filed with the state and then attached to the policy, allowing or modifying coverage for that specific issue. A general policy endorsement is too broad to address a particular defect, a rider endorsement isn’t the standard method for insuring through a specific encumbrance, and an endorsement to ALTA lender's policy is specific to lender coverage rather than the insured’s title. Therefore, the approved method is a specially filed endorsement.