Title Insurance

Title Insurance

• A. Covers events that happened before the date of the policy and protects legal ownership of the airplane.
• B. Covers only physical damage to the aircraft.
• C. Covers liability arising from ownership and operation.
• D. Covers loss of use due to downtime.

Answer: (A)

Title insurance protects your ownership by guarding against defects in the title that existed before the policy starts. It covers issues that arise from events in the past—things like forged transfers, undisclosed liens, or errors in public records—that could threaten your legal ownership of the aircraft. Because it addresses title problems, it isn’t about physical damage to the aircraft, liability from owning or operating it, or loss of use from downtime. Those areas are handled by other types of insurance. So this choice best reflects what title insurance does: it ensures the buyer actually owns the aircraft and covers pre-existing title defects or claims related to those defects.

Title insurance protects your ownership by guarding against defects in the title that existed before the policy starts. It covers issues that arise from events in the past—things like forged transfers, undisclosed liens, or errors in public records—that could threaten your legal ownership of the aircraft. Because it addresses title problems, it isn’t about physical damage to the aircraft, liability from owning or operating it, or loss of use from downtime. Those areas are handled by other types of insurance. So this choice best reflects what title insurance does: it ensures the buyer actually owns the aircraft and covers pre-existing title defects or claims related to those defects.