Final answer:
Title insurance is false to make changes to remedy title defects; it provides financial coverage against loss from title issues. It includes a title search and covers past events, not future risks.
Step-by-step explanation:
The statement "Title insurance protects the insured from title related issues by making the necessary changes to resolve a defect" is false. Title insurance primarily serves as a risk management tool designed to protect a property owner or lender against loss due to title defects, liens, or other issues related to the ownership of real property. Unlike other types of insurance, which provide coverage for future events, title insurance covers events that occurred in the past of the property's history, ensuring the title is clear at the time of purchase.
Title insurance companies perform extensive research into the property's history before issuing a policy, known as a title search. If any problems are identified during this process, the insurance company usually works to resolve them before issuing the policy. Once the policy is issued, if a covered defect is discovered later, the insurance will typically provide financial compensation up to the policy limit, rather than physically altering the records or resolving legal issues directly. Legal action to correct title defects, if necessary, would be conducted separately from the title insurance process, often with legal professionals.