What happens to the obligations of the Company under the ALTA 2006 policy after payment is made to the Insured?

The obligations of the Company under the ALTA 2006 policy are terminated after payment is made to the Insured. This includes any liability or obligation the Company has to defend, prosecute, or continue any litigation related to the claim. When the title insurance company makes a payment for a claim, it essentially fulfills its obligation under the policy regarding that specific claim.

Once the payment is made, the policy no longer requires the Company to engage in any further actions, such as defending against legal challenges or pursuing additional claims. This termination of obligations ensures that the insurer has limited its liability after addressing the claim, allowing it to resolve issues quickly without endless ongoing obligations.

Other options suggest varying forms of continuing obligations, reactivation through additional payment, or transferring the matter to arbitration, which do not align with the standard provisions of the ALTA 2006 policy. These alternatives imply ongoing liability or the need for further premiums, neither of which accurately reflects the outcome of the Company’s obligations post-payment.