If a title agent is not required to use a title plant, what should the policy of insurance be based on?

In the context of a title agent not being required to use a title plant, the policy of insurance should be based on the best title evidence available. This is crucial because title insurance relies on accurate and reliable information to determine ownership and any liens or encumbrances on the property. By focusing on the best title evidence, the agent ensures that they are providing a policy that limits risk and protects all parties involved in a real estate transaction.

When an agent does not utilize a title plant, which serves as a repository of historical title information, they must instead seek out the most comprehensive and authoritative records available. This can include public records, official documents, and other verifiable sources that provide a clear picture of the title status.

The other choices do not accurately reflect the primary principle guiding title insurance in this context. Discretion may lead to inconsistent standards, standard industry practices could be insufficient in specific cases, and relying solely on the most recent information might not encompass the full history of the title, which is essential for thorough coverage. Thus, grounding the policy on the best title evidence available is the most prudent approach to ensure the integrity and reliability of the title insurance offered.