Missouri title insurance Exam with precise detailed answers

Missour i title in sur ance Exam w ith |! |! |! |! |!




pr ecise detailed an sw er s |! |!




Title Insurance - Correct answer ✔Insured statement of the condition of
|! |! |! |! |! |! |! |! |! |! |!




title or ownership of real property. For a one time only premium, the
|! |! |! |! |! |! |! |! |! |! |! |! |!




named insured and their heirs are protected against title defects , liens,
|! |! |! |! |! |! |! |! |! |! |! |!




and encumbrances existing as of date of the policy and not specifically
|! |! |! |! |! |! |! |! |! |! |! |!




excluded from it. |! |!




Commitment/Binder - Correct answer ✔Also called preliminary |! |! |! |! |! |! |!




certificate or commitment, it's a binding contract with a title company to
|! |! |! |! |! |! |! |! |! |! |! |!




issue a specific title policy, showing only those exceptions contained in
|! |! |! |! |! |! |! |! |! |! |!




the commitment and any intervening matters after date of the
|! |! |! |! |! |! |! |! |! |!




commitment and prior to the effective date of the policy.
|! |! |! |! |! |! |! |! |!




endorsement - Correct answer ✔An addition to or modification of a title
|! |! |! |! |! |! |! |! |! |! |! |!




insurance policy which expands or changes coverage of the policy,
|! |! |! |! |! |! |! |! |! |!




fulfilling specific requirements of the insured
|! |! |! |! |!




exception - Correct answer ✔A provision in a title insurance binder or
|! |! |! |! |! |! |! |! |! |! |! |!




policy that excludes Liability for a specific title defect or an outstanding
|! |! |! |! |! |! |! |! |! |! |! |!




lien or encumbrance, such as easements or restrictions
|! |! |! |! |! |! |!

, Requirements - Correct answer ✔conditions in a title insurance binder |! |! |! |! |! |! |! |! |! |!




that must be met or otherwise cleared before title can be insured and a
|! |! |! |! |! |! |! |! |! |! |! |! |! |!




policy can be issued |! |! |!




encumbrance - Correct answer ✔Anything which affects or limits the fee |! |! |! |! |! |! |! |! |! |! |!




simple title to or value of property, e.g., mortgages or easements.
|! |! |! |! |! |! |! |! |! |!




encroachment - Correct answer ✔The situation that exists when a |! |! |! |! |! |! |! |! |! |!




structure is built in whole or part on neighbors property
|! |! |! |! |! |! |! |! |!




insurance company - Correct answer ✔A financial institution that
|! |! |! |! |! |! |! |! |!




protects persons against the risk of financial loss.
|! |! |! |! |! |! |!




Underwriters - Correct answer ✔must decide whether to issue the policy, |! |! |! |! |! |! |! |! |! |! |!




the appropriate premium to charge, and write policies the cover these
|! |! |! |! |! |! |! |! |! |! |!




risks. In making this determination, underwriters serve as the main link
|! |! |! |! |! |! |! |! |! |! |!




between the insurance carrier and agent. An insurance company may lose
|! |! |! |! |! |! |! |! |! |!




business of the underwriter appraises risks too conservatively, or may
|! |! |! |! |! |! |! |! |! |! |!




have to pay claims if the underwriting actions are too liberal.
|! |! |! |! |! |! |! |! |! |!




Chain of title - Correct answer ✔The history of passing of title ownership
|! |! |! |! |! |! |! |! |! |! |! |!




from present owner back to the original owner.
|! |! |! |! |! |! |! |!




Closing/Settlement - Correct answer ✔In a real estate transaction, the |! |! |! |! |! |! |! |! |! |!




closing is the final exchange in the sale and purchase of real estate where
|! |! |! |! |! |! |! |! |! |! |! |! |!




the title is transferred, financing documents, title insurance policies are
|! |! |! |! |! |! |! |! |! |! |!




exchanged, and costs are paid. Some of the final documents are then
|! |! |! |! |! |! |! |! |! |! |! |!