Final answer:
A mortgagor's title insurance policy is based on the loan amount, not the purchase price, making the statement false.
Step-by-step explanation:
The statement that a mortgagor's title insurance policy is based on purchase price is false. The cost of a title insurance policy for a mortgagor (the borrower in a mortgage) typically reflects the loan amount, not the purchase price of the property. This policy is intended to protect the borrower in case there are issues with the property's title after the purchase.