COLORADO LICENSING STUDY GUIDE
QUESTIONS WITH ALL CORRECT & VERIFIED
ANSWERS
Applicant Correct answer-Prospective Insured
Business of Title Insurance Correct answer-a. Solicitation
b. Negotiation
c. Execution
Solicitation Correct answer-Selling & representing of the insurance product (commitment/Policies)
Negotiation Correct answer-Takes place prior to the issuance of policy, examples: closing
settlement services, calculating fees.
Execution Correct answer-When policy is issued commitment is executed.
Closing & Settlement Services Correct answer-Services to borrowers, sellers, lenders & buyers.
Gap Protection Correct answer-a. Date of Commitment Issuance
b. Prior to Recording
Net Retained Liability Correct answer-Total liability under the policy.
Premium Correct answer-Amount Charged for Insurance
Types of Charges for Insurance Correct answer-a. Service charge cost of procuring and examining
title.
b. Risk created by issuing policy.
Indemnification Contract Correct answer-a. Liens
b. Defects in Title
c. Unmarketability
Title Insurance Agent- Authorized by Title Company Correct answer-a. Solicit Business
b. Collect Premiums
C. Issue or Countersign policies
Financial Requirement or Underwriter Correct answer-a. Reserve Fund
b. Supervised by the Commissioner of Insurance
c. Reserves Against Unpaid Losses
Reserve Fund Correct answer-Payment of future claims
Supervised by the Commissioner of Insurance Correct answer-Filing Annual Report
Reserves Against Unpaid Losses Correct answer-Unresolved Claims
Preserve Evidence of Title for Correct answer-7 years
QUESTIONS WITH ALL CORRECT & VERIFIED
ANSWERS
Applicant Correct answer-Prospective Insured
Business of Title Insurance Correct answer-a. Solicitation
b. Negotiation
c. Execution
Solicitation Correct answer-Selling & representing of the insurance product (commitment/Policies)
Negotiation Correct answer-Takes place prior to the issuance of policy, examples: closing
settlement services, calculating fees.
Execution Correct answer-When policy is issued commitment is executed.
Closing & Settlement Services Correct answer-Services to borrowers, sellers, lenders & buyers.
Gap Protection Correct answer-a. Date of Commitment Issuance
b. Prior to Recording
Net Retained Liability Correct answer-Total liability under the policy.
Premium Correct answer-Amount Charged for Insurance
Types of Charges for Insurance Correct answer-a. Service charge cost of procuring and examining
title.
b. Risk created by issuing policy.
Indemnification Contract Correct answer-a. Liens
b. Defects in Title
c. Unmarketability
Title Insurance Agent- Authorized by Title Company Correct answer-a. Solicit Business
b. Collect Premiums
C. Issue or Countersign policies
Financial Requirement or Underwriter Correct answer-a. Reserve Fund
b. Supervised by the Commissioner of Insurance
c. Reserves Against Unpaid Losses
Reserve Fund Correct answer-Payment of future claims
Supervised by the Commissioner of Insurance Correct answer-Filing Annual Report
Reserves Against Unpaid Losses Correct answer-Unresolved Claims
Preserve Evidence of Title for Correct answer-7 years
