Maryland Title Producers
Insurance Exam
Questions and Complete
Solutions Graded A+
Denning [Date] [Course title]
,Trustee's deed - Answer: A deed executed by a trustee (bankruptcy trustee, substitute trustee or
personal representative). A trustee's deed generally does not provide any warranties with
Trustee - Answer: One who holds property in trust for another to secure the performance of an
obligation. Third party under a deed of trust.
Title Insurance - Answer: Insurance designed to indemnify against loss resulting from defects in title.
A Title Contract that states that if the conditions are satisfied, a title policy will be issued.
A. Covenant
B. CCR
C. Compact
D. Commitment - Answer: D. Commitment
What is the definition of the legal term, Presumption.
A. A document need not be notarized
B. Property is assumed to be public
C. Property is assumed to be private
D. Something may be assumed without proof - Answer: D. Something may be assumed without proof
In an insurance contract who makes the offer?
A. The agent
B. The applicant
C. The insurer
D. The government - Answer: The applicant
A clause in a mortgage that states that the rights of the holder of the mortgage are subordinate to a
subsequent lien is called a:
A. loan to value clause
, B. lien clause
C. future lien clause
D. subordination clause - Answer: D. subordination clause
Which term is used to denote a security in which risk is exchanged by two parties?
A. Trade
B. Shuffle
C. Swap
D. Switch - Answer: C. Swap
Generally, judgement liens are effective for:
A. 3 to 5 years
B. An amount determined by state law
C. 5 to 10 years
D. 2 years - Answer: A. 3 to 5 years
Who does an escrow agent represent?
A. The courts
B. The buyer only
C. Both the buyer and the seller
D. The seller only - Answer: C. Both the buyer and the seller
A homeowner takes out a second mortgage on a home. Due to an error by the title company, the first
mortgage was never recorded. The second mortgage is recorded, The first mortgage
A. has a lower lien priority than the second mortgage
B. has equal lien priority with the second mortgage
C. has lien priority over the second mortgage
D. is not recorded, so is not a lien on the property. - Answer: D. is not recorded, so is not a lien on the
property
Insurance Exam
Questions and Complete
Solutions Graded A+
Denning [Date] [Course title]
,Trustee's deed - Answer: A deed executed by a trustee (bankruptcy trustee, substitute trustee or
personal representative). A trustee's deed generally does not provide any warranties with
Trustee - Answer: One who holds property in trust for another to secure the performance of an
obligation. Third party under a deed of trust.
Title Insurance - Answer: Insurance designed to indemnify against loss resulting from defects in title.
A Title Contract that states that if the conditions are satisfied, a title policy will be issued.
A. Covenant
B. CCR
C. Compact
D. Commitment - Answer: D. Commitment
What is the definition of the legal term, Presumption.
A. A document need not be notarized
B. Property is assumed to be public
C. Property is assumed to be private
D. Something may be assumed without proof - Answer: D. Something may be assumed without proof
In an insurance contract who makes the offer?
A. The agent
B. The applicant
C. The insurer
D. The government - Answer: The applicant
A clause in a mortgage that states that the rights of the holder of the mortgage are subordinate to a
subsequent lien is called a:
A. loan to value clause
, B. lien clause
C. future lien clause
D. subordination clause - Answer: D. subordination clause
Which term is used to denote a security in which risk is exchanged by two parties?
A. Trade
B. Shuffle
C. Swap
D. Switch - Answer: C. Swap
Generally, judgement liens are effective for:
A. 3 to 5 years
B. An amount determined by state law
C. 5 to 10 years
D. 2 years - Answer: A. 3 to 5 years
Who does an escrow agent represent?
A. The courts
B. The buyer only
C. Both the buyer and the seller
D. The seller only - Answer: C. Both the buyer and the seller
A homeowner takes out a second mortgage on a home. Due to an error by the title company, the first
mortgage was never recorded. The second mortgage is recorded, The first mortgage
A. has a lower lien priority than the second mortgage
B. has equal lien priority with the second mortgage
C. has lien priority over the second mortgage
D. is not recorded, so is not a lien on the property. - Answer: D. is not recorded, so is not a lien on the
property
