Under what condition can title coverage be denied?

The correct answer highlights that title coverage can be denied based on standards that are applied uniformly and are directly related to the extent of coverage. Title insurance companies assess various factors related to the property, the title history, and associated risks when determining coverage eligibility. These standards include issues such as existing liens, prior ownership disputes, and the presence of easements, which can impact the insurability of a title. By relying on consistent guidelines, insurers ensure they are making fair and informed decisions when offering title coverage, thereby protecting themselves and their policyholders from potential disputes.

In contrast, personal preference of the insurer is not considered a valid reason for denying coverage, as decisions must be based on objective criteria rather than subjective opinions. The color of the property has no bearing on the title insurance process and is irrelevant to the coverage assessment. Similarly, the age of the property alone does not inherently affect its insurability, though older properties may carry certain risks that could be evaluated within the established standards.