Under the ALTA 2006 form policy, "Insured Claimant" refers to whom?

In the context of the ALTA 2006 form policy, the term "Insured Claimant" is specifically defined as the insured party who is actively asserting a claim for loss or damage under the title insurance policy. This is a critical aspect of understanding how claims are processed in title insurance, as it identifies who has the right to seek compensation or remediation under the policy terms.

In practice, the "Insured Claimant" is typically the individual or entity that has suffered a loss due to a covered risk as outlined in the policy. This can include issues like defects in title, liens, or encumbrances that were not disclosed before the policy was issued. By defining "Insured Claimant" in this way, the policy ensures there is clarity on who has the claim rights, thereby facilitating the claims process.

The other choices mention parties relevant to title insurance but do not correctly define "Insured Claimant." For instance, the proposed insured or the insured named in the title policy may hold coverage but are not necessarily the ones filing a claim at any given time. Thus, the focus on the active claimant emphasizes the role and rights of those affected by potential losses, reinforcing the claims process in the insurance industry.