Missouri Title Insurance Producer EXAM,
comprehensive questions and verified answers
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Terms in this set (158)
Title Insurance Insured statement of the condition of title or
ownership of real property. For a one-time-only
premium, the named insured and their heirs are
protected against title defects, liens,
encumbrances existing as of the date of the
policy and not specifically excluded from it. In
the event of a claim , the title company provides
legal defense from the policyholder and pays
any covered losses incurred as a result of such
claim.
Commitment/Binder 1 Also called a "preliminary certificate", it's a
contract with a title company to issue a specific
title policy, showing only those exceptions
contained in the -- and any intervening matters
after the date of the -- and prior to the effective
date of the policy. The -- contains all information
included in the preliminary title report, plus a list
of requirements that must be met in order to
insure the transaction and standard exceptions
from coverage that will appear in the policy
,Commitment/Binder 2 1. A preliminary report as to the condition of a
title and a -- to issue a title insurance policy when
certain conditions are met.
2. A document issued by a title insurance
company that contains the conditions under
which a policy of title insurance will be issued.
Endorsement An addition to or modification of a title insurance
policy which expands or changes coverage of
the policy, fulfilling specific requirements of the
insured.
Exception A provision in a title insurance binder or policy
that excludes liability for a specific title defect or
an outstanding lien or encumbrance, such as
easements and restrictions
Requirements Conditions in a title insurance binder that must be
met or otherwise cleared before title can be
insured and a policy can be issued,
Encumbrance Anything which affects or limits the fee simple
title to property, such as mortgages, easements,
or restrictions which do not prevent alienation of
the fee title by the owner. Liens are special --
which make the property security for the debt.
, Encroachment The situation that exists when a structure is built
in whole or part on a neighboring property.
Disputes arising from a confusion of boundaries
may be the result of incorrect surveys, or
mistakes by builders and/or owners when
erecting an improvement; and may be generally
settled by an action at law. However, courts of
equity will entertain a bill for the settlement of
boundaries when the rights may be established
upon equitable grounds. -- may be corrected by
giving or selling the said party an easement or
lease for the lifetime of the building, or in the
case of small structures, actually moving it onto
the owner's own property.
Insurance Companies Protect individuals and organizations from
financial loss by assuming risk. They analyze
information in insurance applications to
determine if a risk is acceptable and is not
expected to result in a loss. Applications are
often supplemented with reports from loss-
control consultants.
Underwriters Must decide whether top issue the policy, the
appropriate premium to charge, and write
policies that cover these risks. In making this
determination, -- serve as the main link between
the insurance carrier and the insurance agent. An
insurance company may lose business if the --
appraises risks too conservatively, or may have to
pay claims if the -- actions are too liberal.
comprehensive questions and verified answers
|| QUESTIONS WITH ACCURATE ANSWERS | GET
IT RIGHT |!
Save
Terms in this set (158)
Title Insurance Insured statement of the condition of title or
ownership of real property. For a one-time-only
premium, the named insured and their heirs are
protected against title defects, liens,
encumbrances existing as of the date of the
policy and not specifically excluded from it. In
the event of a claim , the title company provides
legal defense from the policyholder and pays
any covered losses incurred as a result of such
claim.
Commitment/Binder 1 Also called a "preliminary certificate", it's a
contract with a title company to issue a specific
title policy, showing only those exceptions
contained in the -- and any intervening matters
after the date of the -- and prior to the effective
date of the policy. The -- contains all information
included in the preliminary title report, plus a list
of requirements that must be met in order to
insure the transaction and standard exceptions
from coverage that will appear in the policy
,Commitment/Binder 2 1. A preliminary report as to the condition of a
title and a -- to issue a title insurance policy when
certain conditions are met.
2. A document issued by a title insurance
company that contains the conditions under
which a policy of title insurance will be issued.
Endorsement An addition to or modification of a title insurance
policy which expands or changes coverage of
the policy, fulfilling specific requirements of the
insured.
Exception A provision in a title insurance binder or policy
that excludes liability for a specific title defect or
an outstanding lien or encumbrance, such as
easements and restrictions
Requirements Conditions in a title insurance binder that must be
met or otherwise cleared before title can be
insured and a policy can be issued,
Encumbrance Anything which affects or limits the fee simple
title to property, such as mortgages, easements,
or restrictions which do not prevent alienation of
the fee title by the owner. Liens are special --
which make the property security for the debt.
, Encroachment The situation that exists when a structure is built
in whole or part on a neighboring property.
Disputes arising from a confusion of boundaries
may be the result of incorrect surveys, or
mistakes by builders and/or owners when
erecting an improvement; and may be generally
settled by an action at law. However, courts of
equity will entertain a bill for the settlement of
boundaries when the rights may be established
upon equitable grounds. -- may be corrected by
giving or selling the said party an easement or
lease for the lifetime of the building, or in the
case of small structures, actually moving it onto
the owner's own property.
Insurance Companies Protect individuals and organizations from
financial loss by assuming risk. They analyze
information in insurance applications to
determine if a risk is acceptable and is not
expected to result in a loss. Applications are
often supplemented with reports from loss-
control consultants.
Underwriters Must decide whether top issue the policy, the
appropriate premium to charge, and write
policies that cover these risks. In making this
determination, -- serve as the main link between
the insurance carrier and the insurance agent. An
insurance company may lose business if the --
appraises risks too conservatively, or may have to
pay claims if the -- actions are too liberal.
