Which of the following affects title insurance policies?

Title insurance policies are significantly affected by title defects. Title defects refer to any issues or irregularities in the chain of title that can cloud ownership rights. Examples of title defects include outstanding liens, claims from heirs who did not consent to the sale, or errors in public records. These defects can affect the insurability of the title and expose the policyholder to potential loss, making it essential for title insurance to address and cover these risks.

While factors like state economic conditions, property location, and insurance premium rates do play roles in the broader insurance landscape, they do not directly impact the validity or reliability of the title itself. Title insurance is specifically designed to protect against defects in the title, which is why title defects are a fundamental consideration in the issuance and effectiveness of title insurance policies.