Pursuant to the current form of commitment for title insurance, the obligation of the issuing company is:

Pursuant to the current form of commitment for title insurance, the obligation of the issuing company is:

• A. The same as in ALTA Owner's Policy
• B. The same as in ALTA Lender's Policy
• C. Not intended to be in lieu of either of the above
• D. A & B

Answer: (C)

The key idea is that a title insurance commitment is a preliminary promise, not the actual insurance coverage. It lays out the terms, conditions, and requirements for issuing the final policy, but it does not itself insure the title. Because of that, it is not intended to replace either of the final policies—the ALTA Owner’s Policy or the ALTA Lender’s Policy. The commitment’s obligation is to issue the final policy once closing occurs and the conditions are satisfied, with coverage reflecting the policy chosen (owner or lender). The commitment therefore serves as a roadmap for what the final policy will contain, not as the coverage itself.

The key idea is that a title insurance commitment is a preliminary promise, not the actual insurance coverage. It lays out the terms, conditions, and requirements for issuing the final policy, but it does not itself insure the title. Because of that, it is not intended to replace either of the final policies—the ALTA Owner’s Policy or the ALTA Lender’s Policy. The commitment’s obligation is to issue the final policy once closing occurs and the conditions are satisfied, with coverage reflecting the policy chosen (owner or lender). The commitment therefore serves as a roadmap for what the final policy will contain, not as the coverage itself.