What is defined as each contract of title insurance issued by the company?

The term that defines each contract of title insurance issued by the company is referred to as "the policy." In the context of title insurance, a policy serves as a formal agreement between the insurance provider and the policyholder. It outlines the terms, coverage, and conditions under which the title insurance is provided, protecting the insured against potential losses arising from defects in the title of the property.

A title insurance policy effectively provides assurance that the title is clear and free from encumbrances or claims that could affect ownership rights. It is essential for property buyers and mortgage lenders, as it safeguards their investments by covering legal fees and other costs associated with disputes or issues concerning the title.

Other terms such as endorsement and commitment refer to specific aspects related to title insurance but do not represent the overarching contract. An endorsement may modify or add coverage to an existing policy, while a commitment is often a preliminary document issued before the actual policy, stating what the company will insure upon closing. The term "agreement" is too broad and non-specific to title insurance, failing to capture the unique contractual nature of the title insurance policy.