Under the ALTA 2006 form policy, which of the following is NOT included under Covered Risk No. 2 regarding title defects?

Covered Risk No. 2 under the ALTA 2006 form policy addresses title defects. Option B is correct in stating that a document created, suffered, assumed, or agreed to by the insured is not included under the covered risks. This is significant because the ALTA policy is designed to protect against risks inherent to title defects that are outside the control of the insured. When an insured actively participates in the creation or agreement to a document that affects the title, the risk associated with that document is considered to be a known or voluntarily accepted risk by the insured, and thus, the title insurer does not cover it.

On the other hand, the other options all represent scenarios where title defects arise from outside actions, including legal issues or recording errors that the insured did not initiate or have control over. For instance, a document executed under a falsified power of attorney (option A) involves fraud or misrepresentation which could affect the validity of the title but is not a result of the insured's own actions. Similarly, a document not properly recorded or indexed (option C) presents a risk that could potentially obscure claims to the title, further justifying its inclusion under covered risks. Lastly, a defective judicial or administrative proceeding (option D) represents a