Insurance Producer Study Guide Verified - Comprehensive Answer Key

Insurance Producer Study Guide Verified - Comprehensive Answer Key What does ALTA mean? - answer - American land Title Association All of the following are characteristics of an ALTA loan policy - answer - Exceptions Exclusions Conditions Chain of Title - answer - A listing of the chronological order of conveyances of a parcel of land, from the original owner to the present owner. The policy limit noted in a title insurance policy applies to - answer - Cumulative Claims Closing - answer - The process of completing a real estate transaction during which deeds, mortgages, leases and other required instruments are signed an/or delivered, an accounting between parties is made, and the money is disbursed. Closing Protection Letters - answer - A document issued by a title insurance company in connection with an about-to-be-issued title insurance policy. It protects a mortgagee who is forwarding funds to a title insurance company's agent or attorney against an embezzlement of funds or a failure to follow specific closing instructions The title insurance Insure Closing Letter/Closing Protection Letter is issued to the lender along with - answer - The title commitment In a deed, the borrower is the - answer - Grantee In a deed of trust, the borrower is the - answer - Grantor Commitment - answer - The preliminary report or binder issued prior to the issuance of a title insurance policy. Serves as title company's good faith intention to issue policy containing the terms, conditions, exceptions, and any other matters under which the title insurer is willing to issue its title insurance policy. Encroachment - answer - The extension of a structure from the real estate to which it belongs across a boundary line and onto adjoining property. Encumbrances - answer - A claim, lien charge, or liability attached to and binding real property. Escrow - answer - "A system of document transfer in which a deed, funds, or other property is delivered to a third person to hold until all conditions to a contract are fulfilled." Foreclosure - answer - A proceeding in and out of court, to extinguish all rights, title, and interest, of owners of property in order to sell the property to satisfy a lien against it. Gap Coverage: - answer - Issuing title insurance is generally a two-step procedure, and the time between those two steps. Period between closing and the recording of title. HUD-1 Settlement Statement: - answer - Is a standard form in use in the United States of America which is used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate. Borrower has right to inspect 1 day before settlement Title underwriters do the following - answer - 1. Determine risk 2. Authorize the issuance of blank endorsements 3. Authorize the settlements related to properties in bankruptcy or foreclosure Insurance: - answer - A contract under which, for consideration, one party agrees to indemnify another for a possible loss under certain conditions. The habendum clause ("to have and to hold" clause) purpose is to further define the rights of a grantee in a - answer - Deed Lender's Policy: - answer - When a mortgage is granted, the lender seeks protection for their investment and requires a policy be issued to protect against losses resulting from claims made by others against the property. Loan Closing: - answer - The time agreed upon by a borrower and a lender when the execution of the loan documents by the borrower occurs. Owner's Policy: - answer - A policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, liens against, or un-marketability of the owner's title. Policy - answer - A contract insuring or indemnifying owners of, or other persons lawfully interested in, real or personal property or an interest in real or personal property against loss or damage. Premium Rates: - answer - Price for a un