Under the ALTA 2006 form policy, the extent of Company liability for loss or damage shall not exceed?

The correct option establishes that under the ALTA 2006 form policy, the extent of the title insurance company’s liability for loss or damage is determined by two key factors: the amount of insurance provided in the policy and the valuation of the title as insured versus the specific risk that was insured against.

This structure serves to limit the insurer's financial responsibility to a measure that aligns with both the coverage purchased and the actual risk presented. Essentially, if a claim arises, the insurer will evaluate the situation based on the value of the title as it was insured and assess any loss based on the insured risk. This ensures that the policyholder receives compensation not exceeding what they originally paid for in coverage or the specific value they would have lost due to the insured risk, thus balancing both parties' interests in the transaction.

By defining liability in this manner, the policy effectively protects both the title insurance company and the insured from financial overreach or undercompensation, which represents a fair approach to managing risks associated with title insurance.