Chapter Nine: The New Jersey Title Insurance Act 2024

Chapter Nine: The New Jersey Title Insurance Act 2024 When a licensed rating organization changes its list of members and subscribers, it must notify the Commissioner: - CORRECT ANSWER-Promptly If the rates and charges for "personal or controlled insurance" from any one source is issued in any one calendar year received by a title insurance company or by a title insurance agent exceeds _______, or from all such sources exceeds ________ of the total rates and charges received by the title insurance company or by such title insurance agent for title insurance issued in the same year, the excess is deemed to be an unlawful rebate. - CORRECT ANSWER-25%; 50% The insured on the title policy the agent wrote is a person that owns 70% of the voting stock of the title insurer. This policy is: - CORRECT ANSWER-Personal or controlled insurance of the agent The Commissioner approves rates that are: - CORRECT ANSWER-Not inadequate for the safeness and soundness of the insurer A title insurer is domiciled in Massachusetts, and does business in Massachusetts, New Jersey and Virginia. How much must it have on deposit for the security and protection of its policyholders or beneficiaries under title policies according to the New Jersey Title Insurance Act? - CORRECT ANSWER-$200,000 If the Commissioner has reason to believe that any title insurance agent has violated and is violating any of the provisions in the Title Insurance Act pertaining to the payment of inducements, rebates or reduced fees, the Commissioner will then: - CORRECT ANSWER-Examine the title insurance agent's books of account and record and vouchers pertaining to the business of title insurance. Unless an applicable endorsement has been filed and approved by the Commissioner, a title insurer _____________ delete or insure over an exception to or exclusion from coverage that is contained in forms of title insurance filed with the Commissioner. - CORRECT ANSWER-may not Funds over and above minimum capital, other than the statutory premium reserve, may be retained as cash on hand or on deposit in banks, or may be invested in any of the following classes of investments, except: - CORRECT ANSWER-Corporate stock or shares of any solvent corporation incorporated under the laws of any country in the European Union If a title insurance rating organization, title insurance company, or title insurance agent fails to comply with an order of the Commissioner within the time limited by the order, or any extension of the time limit, the Commissioner may: - CORRECT ANSWERSuspend the organization or person's license If the capital of a domestic title insurance company becomes impaired and the impairment is not eliminated within ______________________ from its inception, the company must give written notice to the Commissioner. - CORRECT ANSWER-30 days The unearned portions of premiums due or received that are charged as a reserve liability of the title insurance company in determining its financial condition is: - CORRECT ANSWER-Statutory premium reserve A title insurance company may satisfy its obligations to make rate filings by becoming a member of, or a subscriber to _______________________ which makes the filings on behalf of its members, and by authorizing the Commissioner to accept the filings on its behalf. - CORRECT ANSWER-a licensed title insurance rating organization In meeting the minimum capital requirements, the aggregate amount invested at any time in the classes of investments allowed under the New Jersey Title Insurance Act may not, without written approval of the Commissioner, exceed _________ of the sum of the capital and surplus of the title insurance company as shown by its most recent statement on file with the Commissioner. - CORRECT ANSWER-50% All title insurers authorized in New Jersey must have minimum capital, which must be paid-in and maintained, of not less than _______________________, and, in addition, paid-in surplus of at least _______________________. - CORRECT ANSWER- $500,000; $250,000 All members of or subscribers to a title insurance rating organization must generally adhere to the filings made on its behalf by the organization. However, any title insurance company which is a member of or subscriber to a rating organization may file with the Commissioner: - CORRECT ANSWER-A uniform percentage of decrease or increase Under the Title Insurance Act, the "total liability retained by a title insurance company under any policy or contract of insurance, or under a single insurance risk as defined in or computed in accordance with [the definition of single insurance risk], after the purchase of reinsurance" is: - CORRECT ANSWER-net retained liability If the Commissioner finds that any title insurance rating organization, title insurance company or title insurance agent has violated any provision of the Act, the Commissioner may impose a penalty of not more than __________ for each violation, but if he finds that the violation is willful, the Commissioner will impose a penalty of not more than __________ for each violation. - CORRECT ANSWER-$1000; $5000 Any of the following may request a hearing as an aggrieved person or organization with respect to any rate filing in effect, except: - CORRECT ANSWER-A title insurance company The fee for a title examination filed with the New Jersey Commissioner by the title insurer is $250. Of the following options, the title producer may charge a fee for a title examination of: - CORRECT ANSWER-$25