NJ Title insurance exam questions with Correctly Answered Solutions

NJ Title insurance exam questions with Correctly Answered Solutions Which of the following statements is true? A domestic company is one chartered in this country. B. a foreign company is one chartered in another country C. an alien company is one chartered in another state D. a certificate of authority is used to companies authorized to transact business in the state - CORRECT ANSWER-D Which of the following statements is not true? A. A single insurance risk can include two or more policies on the same real property. B. A single insurance risk does not include certain mortgage interest except in fee or leasehold policies. C. A single insurance risk can me the insured face amount of a title insurance policy. D. A single insurance risk can include both real and personal property. - CORRECT ANSWER-D 3. The statutory definition of title insurance includes which of the following I. Guaranteeing the correctness of title searches II. The guaranteed by the title company of the existence of amenities in connection with the purchase of real property. III. The Ensuring by a title company of the validity of a mortgage loan A. I and II only B. II and III only C. I and III only D. I, II and III - CORRECT ANSWER-C The statutory definition of title insurance includes which of the following I. Guaranteeing the credit worthiness of the mortgagor II. Indemnifying owners against loss suffered as a result of the title being on marketable III. Indemnifying owners against hidden property defects in the title to real policy. A. I and II only B. II and III only C. I and III only D. I, II and III - CORRECT ANSWER-B title insurance companies are permitted to do which of the following I. Guarantee the completion of construction projects II. Guarantee the repayment of mortgages III. Indemnify a lender for losses resulting from acts of the closing attorney or closing agent A. I and II only B. II and III only C. I and III only D. III only - CORRECT ANSWER-D In New Jersey title insurance companies are not required to do which of the following? A. Become a member of a reading bureau in order to file their forms and rates B. File their forms with the New Jersey Dep