When a title company issues a California standard policy of title insurance, the policyholder is insured against loss which occurs because of:

A: Unrecorded liens and encumbrances;
B: The rights of parties in possession;
C: Forgery in the chain of recorded title;
D: A defect in the chain of title, already known by the insured prior to the issuance of the policy.

Answer: C: Forgery in the chain of recorded title;

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