NEW JERSEY TITLE PRODUCER 2024 Final Exam Q & A

NEW JERSEY TITLE PRODUCER 2024 Final Exam Q & A ALTA 1 - CORRECT ANSWER-Street Assessments ALTA 2 - CORRECT ANSWER-Truth in lending owners policy - CORRECT ANSWER-insures estates of ownership, remains constant over the life of the property. Covers property line disputes. A type of title insurance issued in the name of the property owner. Coverage runs from the time of purchase for as long as the policyholder owns the property. mortgage lender policy (loan policy) - CORRECT ANSWER-lender policy insures mortgage company interest (written for the loan amount) Broader coverage than the owner policy. Should foreclosure occur it becomes owner policy- lender takes possession of property. leaseholder coverage - CORRECT ANSWER-NOT an owner policy. Lease for a specified period of time. State requires that a leasehold interest be recorded. When are covered risks included in title policies insured? - CORRECT ANSWER-as of the date of the policy Title Assurance - CORRECT ANSWER-All aspects of title are valid (surveys, examination of records, registry of deeds) Does a title insurance policy provide absolute assurance of title ? What does title insurance protect against? - CORRECT ANSWER-No, title insurance protects against the risk of financial harm due to some error or omission that occurred in the past. Examples of what title insurance insures.. - CORRECT ANSWER-only matters of title - insures against risks, accurancy and sufficiency of abstract, title examination and matters disclosed in a survey and site inspections of property. Easements - CORRECT ANSWER-rights landowner has to use land of another, road or pathway to access land , any right that is material to dominant estate. Easement Appurtenant - CORRECT ANSWER-Right or privilege improvement passing with principal property. Not always part of property. Ex. a right of way through the neighbors yard. Passes with title to the dominant estate. May be encumbrance on the land, reduce the value of the land. How are easements created? - CORRECT ANSWER-Dedication, deed or grant. Not by oral agreement, are transferrable. Easement by Necessity - CORRECT ANSWER-Access to property through adjoining property. Essential for the use and enjoyment to a tract of land. Easement by Prescription - CORRECT ANSWER-Acquired through open uninterrupted and adverse use of another's real property. Adjoining owner does not stop the use of his or her property, time lapses and the use becomes an easement. Easement in Gross (aka Easement of Condemnation) - CORRECT ANSWER-Under the rights of eminent domain government established an easement on the property when it is for the good of public. -does not pass with title, -right for a private person to use another's land. Ex. billboard License - CORRECT ANSWER-temporary right to use another person's land (Not an Easement) Revocable at will of landowner. Profit a Prendre - CORRECT ANSWER-Not an Easement.. right to go on the land of another to remove minerals or similar purpose. (Not in writing generally nontransferable.) Unfair methods of competition & deceptive acts, violates cease & desist order - CORRECT ANSWER-$5000 per violation When are premium funds remitted to the insurer or other insurance producer? - CORRECT ANSWER-within 5 business days after receipt of funds Within how many days must title insurance settlement funds be disbursed? - CORRECT ANSWER-Within 5 days after settlement An insurance producer is required to establish this to hold any premium for more than 5 business days before remitting premiums to the insurer or insurance producer, an insurance producer deposits collected premiums into financial institution. - CORRECT ANSWER-Trust Account When does an insurance producer issue a receipt? - CORRECT ANSWER-at the time payment is tendered how long does an insurance producer maintain a file for each client and customer after termination of coverage. - CORRECT ANSWER-5 years Electronic Record keeping - CORRECT ANSWER-books and records may be maintained if conditions are met. - all elements required to be maintained under regulations in electronic system. -upon request of the dept. electronically kept records can be reproduced in a hard copy. - electronic backups are produced daily, @ least every 30 days, records maintained electronically are reproduced & stored off site. NJ statutes provide that any insurer authorized to transact business in the state may appoint as its agent a person - CORRECT ANSWER-that holds a valid insurance producer license issued in accordance with Produc