Which of the following is NOT a Covered Risk under the ALTA 2006 form policy?

The correct answer is the rights of eminent domain, which are not considered a covered risk under the ALTA 2006 form policy. Eminent domain refers to the power of the government to take private property for public use, with compensation to the owner. This risk is typically excluded from title insurance because it is a government action that can occur independently of any title defects.

In contrast, the other options relate directly to issues that can affect the ownership or marketability of a title. Title vested other than as stated refers to discrepancies in how the ownership is represented, while any defect or lien on the title deals with encumbrances that may encroach on the owner’s rights. Adverse circumstances affecting the title encompass a broad range of issues, such as unknown heirs or changes made without proper legal authority. These are risks covered by the title insurance policy since they relate to the actual ownership and rights associated with the property.