Under the ALTA 2006 form policy, which of the following is NOT covered risk?

The correct answer is based on the understanding of coverage provided under the ALTA 2006 form policy. This policy is designed to protect an insured claimant from certain risks associated with their property title.

When it comes to defects and encumbrances agreed to by the insured claimant, these are typically considered risks that are known and accepted by the claimant at the time of the policy issuance. Since title insurance is intended to cover unknown risks or issues that can affect ownership or marketability of the property, any defects or encumbrances that the insured has agreed to would not qualify for coverage. This essentially implies that if the claimant is aware of a defect and chooses to accept it, the insurer should not be responsible for covering any claims arising from that acceptance.

In contrast, unmarketable title, lack of access, and eminent domain rights are risks that could impact the value or use of the property but may not be known or voluntarily accepted by the claimant. Therefore, the policy covers these risks to protect the insured from potential losses resulting from issues outside their control.