Which of the following is NOT an Exclusion from Coverage under the ALTA 2006 form policy?

Prepare for the Alabama Title Insurance Test. Practice with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

The correct answer is unmarketable title because unmarketable title is a term that refers to a title that cannot be sold or mortgaged due to various legal issues, such as liens, easements, or other encumbrances that may not allow free transfer of ownership. Under the ALTA 2006 form policy, exclusions typically include defects or claims that arise from certain circumstances, such as governmental powers or actions, but unmarketable title itself is not listed as a specific exclusion from coverage.

In contrast, any governmental police power refers to the authority of the state to regulate behavior and enforce order within its territory, which can impact ownership rights but is not covered under the title policy. Rights of eminent domain involve the government's right to take private property for public use, which is also excluded from coverage because it affects the title's usability. Defects or claims created by the Insured Claimant signify issues that arise due to the actions or decisions of the insured party themselves, which is a classic exclusion in title insurance policies, as it highlights conflicts or complications that are the result of the insured's own transactions or behaviors. These exclusions highlight situations that the insurer does not cover due to the risk inherent in those specific circumstances.

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