Define "prior policy" in the context of title insurance.

In the context of title insurance, a "prior policy" refers to an existing title insurance policy that can be referenced to underwrite a new policy. This means that when a new title insurance policy is issued for a property, the underwriter may examine any previous policies that have been issued for that property. These prior policies provide valuable information regarding the title history, conditions, and potential issues that may affect the current transaction.

By reviewing a prior policy, the underwriter can better assess the risk involved in insuring the title. It often contains details about prior claims, exceptions, and other matters that have been previously addressed, which can inform the underwriting process for the new policy. This practice helps in maintaining consistency and accuracy in title insurance coverage, which is critical for ensuring that property owners and lenders are adequately protected from unforeseen title defects or claims.

The other options do not accurately encapsulate the definition or purpose of a prior policy in the realm of title insurance, highlighting the unique role that existing policies play in the underwriting of new title insurance offerings.