Which of these statements is true regarding title insurance policies?

The correct statement regarding title insurance policies is that all agents must be licensed to issue policies. This requirement ensures that the agents have the necessary knowledge and understanding of the title insurance process and related regulations, which helps protect consumers in real estate transactions. Licensing typically involves meeting educational requirements, passing exams, and adhering to state regulations, ensuring that only qualified individuals handle title insurance matters.

Although other statements may address various aspects of title insurance, they do not align with standard industry practices and regulations. For example, while certain types of policies may undergo state approval, not all policies necessarily need to be cleared for each transaction. Additionally, title insurance can be issued without a purchase contract in specific circumstances, such as refinance transactions. Lastly, state laws govern the issuance of insurance policies, preventing just any agency from issuing them without the proper licenses and approvals.