Missour i Title Agen t Pr oduce Exam |! |! |! |! |!
(pr actice test) question s & ver ifi ed |! |! |! |! |!
an sw er s
What is the name of the Missouri statutory chapter - Ch. 381 - governing
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the "title insurance" business? - Correct answer ✔Missouri Title
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Insurance Act |!
According to Section 381.015, RSMO, a "title insurance commitment" is
|! |! |! |! |! |! |! |! |! |!
also known as: (3) - Correct answer ✔Preliminary report
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Commitment
Binder
On a "purchase transaction" where a LOAN POLICY is required by the
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purchaser's lender, what is the obligation of the title agency if the buyer
|! |! |! |! |! |! |! |! |! |! |! |! |!
DOES NOT request a simultaneously-issued owner's policy? - Correct
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answer ✔Give written notice on an approved form to the purchaser that
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the Loan Policy does not cover the purchaser and that purchaser has 60
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days to purchase an Owner's Policy
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The NOTICE OF PURCHASER'S RIGHTS TO PURCHASE AN OWNER'S
|! |! |! |! |! |! |! |! |!
POLICY - issued in situations where the purchaser has decided to not
|! |! |! |! |! |! |! |! |! |! |! |!
purchase an Owner's Policy - must be retained in the "underwriting file"
|! |! |! |! |! |! |! |! |! |! |! |!
for what period of time? - Correct answer ✔15 years
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,T/F
A title insurer (title underwriter) may allow an agency or title agent to
|! |! |! |! |! |! |! |! |! |! |! |! |!
issue its title commitments and policies even if the insurer does not have
|! |! |! |! |! |! |! |! |! |! |! |! |!
a written contract with the title agency - Correct answer ✔False
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T/F
An agreement between a title agent and a title insurer, whereby the title
|! |! |! |! |! |! |! |! |! |! |! |! |!
insurer authorizes the title agent to issue its commitments and policies,
|! |! |! |! |! |! |! |! |! |! |!
DOES NOT have to be in WRITING - Correct answer ✔False
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T/F
An underwriter/insurer may enter into an agreement with a title agent,
|! |! |! |! |! |! |! |! |! |! |!
allowing the agent to issue the underwriter's commitments and policies,
|! |! |! |! |! |! |! |! |! |!
before the title agent is licensed with the State of Missouri - Correct
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answer ✔False |!
If a title insurer/underwriter terminate its agreement with a title agency,
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the insurer has how many days to notify the Director of the Department
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of Insurance of the reasons for the termination? - Correct answer ✔7
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days
According to Section 381.019, RSMO, a title insurer, title agency or title
|! |! |! |! |! |! |! |! |! |! |! |!
agent must provide "clear, conspicuous and distinct disclosure of
|! |! |! |! |! |! |! |! |!
premiums and charges" |! |!
, Specifically, the charges should be referenced in what category(ies)? (3) -
|! |! |! |! |! |! |! |! |! |! |!
Correct answer ✔- Premium (risk-rate)|! |! |! |!
- Abstract or title search and exam fees
|! |! |! |! |! |! |!
- Settlement, escrow, or closing fees
|! |! |! |! |!
Funds deposited with a title agency must be deposited into a "Qualified
|! |! |! |! |! |! |! |! |! |! |! |!
Depository Institution" no later than (?) - Correct answer ✔the close of
|! |! |! |! |! |! |! |! |! |! |! |!
the second business day after receipt
|! |! |! |! |!
T/F
Funds deposited with the title agency must be held in a manner that
|! |! |! |! |! |! |! |! |! |! |! |! |!
permits the funds to be identified on an individual basis and in
|! |! |! |! |! |! |! |! |! |! |! |!
accordance with the terms of the written instruction or agreements under
|! |! |! |! |! |! |! |! |! |!
which the funds were accepted - Correct answer ✔True
|! |! |! |! |! |! |! |! |!
T/F
A title agent may apply the deposited funds in a manner inconsistent
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with the written instructions from the party that deposited the funds -
|! |! |! |! |! |! |! |! |! |! |! |!
Correct answer ✔False |! |!
(3) unlawful for a title agent to do - Correct answer ✔1. Commingle
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personal funds with funds deposited by clients
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2. Use escrow funds to pay title company expenses and debts
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3. Use escrow funds for any purpose other than as stated in written
|! |! |! |! |! |! |! |! |! |! |! |! |!
escrow instructions |!
(pr actice test) question s & ver ifi ed |! |! |! |! |!
an sw er s
What is the name of the Missouri statutory chapter - Ch. 381 - governing
|! |! |! |! |! |! |! |! |! |! |! |! |!
the "title insurance" business? - Correct answer ✔Missouri Title
|! |! |! |! |! |! |! |! |! |!
Insurance Act |!
According to Section 381.015, RSMO, a "title insurance commitment" is
|! |! |! |! |! |! |! |! |! |!
also known as: (3) - Correct answer ✔Preliminary report
|! |! |! |! |! |! |! |!
Commitment
Binder
On a "purchase transaction" where a LOAN POLICY is required by the
|! |! |! |! |! |! |! |! |! |! |! |!
purchaser's lender, what is the obligation of the title agency if the buyer
|! |! |! |! |! |! |! |! |! |! |! |! |!
DOES NOT request a simultaneously-issued owner's policy? - Correct
|! |! |! |! |! |! |! |! |!
answer ✔Give written notice on an approved form to the purchaser that
|! |! |! |! |! |! |! |! |! |! |! |!
the Loan Policy does not cover the purchaser and that purchaser has 60
|! |! |! |! |! |! |! |! |! |! |! |! |!
days to purchase an Owner's Policy
|! |! |! |! |!
The NOTICE OF PURCHASER'S RIGHTS TO PURCHASE AN OWNER'S
|! |! |! |! |! |! |! |! |!
POLICY - issued in situations where the purchaser has decided to not
|! |! |! |! |! |! |! |! |! |! |! |!
purchase an Owner's Policy - must be retained in the "underwriting file"
|! |! |! |! |! |! |! |! |! |! |! |!
for what period of time? - Correct answer ✔15 years
|! |! |! |! |! |! |! |! |!
,T/F
A title insurer (title underwriter) may allow an agency or title agent to
|! |! |! |! |! |! |! |! |! |! |! |! |!
issue its title commitments and policies even if the insurer does not have
|! |! |! |! |! |! |! |! |! |! |! |! |!
a written contract with the title agency - Correct answer ✔False
|! |! |! |! |! |! |! |! |! |!
T/F
An agreement between a title agent and a title insurer, whereby the title
|! |! |! |! |! |! |! |! |! |! |! |! |!
insurer authorizes the title agent to issue its commitments and policies,
|! |! |! |! |! |! |! |! |! |! |!
DOES NOT have to be in WRITING - Correct answer ✔False
|! |! |! |! |! |! |! |! |! |!
T/F
An underwriter/insurer may enter into an agreement with a title agent,
|! |! |! |! |! |! |! |! |! |! |!
allowing the agent to issue the underwriter's commitments and policies,
|! |! |! |! |! |! |! |! |! |!
before the title agent is licensed with the State of Missouri - Correct
|! |! |! |! |! |! |! |! |! |! |! |! |!
answer ✔False |!
If a title insurer/underwriter terminate its agreement with a title agency,
|! |! |! |! |! |! |! |! |! |! |!
the insurer has how many days to notify the Director of the Department
|! |! |! |! |! |! |! |! |! |! |! |! |!
of Insurance of the reasons for the termination? - Correct answer ✔7
|! |! |! |! |! |! |! |! |! |! |! |!
days
According to Section 381.019, RSMO, a title insurer, title agency or title
|! |! |! |! |! |! |! |! |! |! |! |!
agent must provide "clear, conspicuous and distinct disclosure of
|! |! |! |! |! |! |! |! |!
premiums and charges" |! |!
, Specifically, the charges should be referenced in what category(ies)? (3) -
|! |! |! |! |! |! |! |! |! |! |!
Correct answer ✔- Premium (risk-rate)|! |! |! |!
- Abstract or title search and exam fees
|! |! |! |! |! |! |!
- Settlement, escrow, or closing fees
|! |! |! |! |!
Funds deposited with a title agency must be deposited into a "Qualified
|! |! |! |! |! |! |! |! |! |! |! |!
Depository Institution" no later than (?) - Correct answer ✔the close of
|! |! |! |! |! |! |! |! |! |! |! |!
the second business day after receipt
|! |! |! |! |!
T/F
Funds deposited with the title agency must be held in a manner that
|! |! |! |! |! |! |! |! |! |! |! |! |!
permits the funds to be identified on an individual basis and in
|! |! |! |! |! |! |! |! |! |! |! |!
accordance with the terms of the written instruction or agreements under
|! |! |! |! |! |! |! |! |! |!
which the funds were accepted - Correct answer ✔True
|! |! |! |! |! |! |! |! |!
T/F
A title agent may apply the deposited funds in a manner inconsistent
|! |! |! |! |! |! |! |! |! |! |! |!
with the written instructions from the party that deposited the funds -
|! |! |! |! |! |! |! |! |! |! |! |!
Correct answer ✔False |! |!
(3) unlawful for a title agent to do - Correct answer ✔1. Commingle
|! |! |! |! |! |! |! |! |! |! |! |! |!
personal funds with funds deposited by clients
|! |! |! |! |! |!
2. Use escrow funds to pay title company expenses and debts
|! |! |! |! |! |! |! |! |! |!
3. Use escrow funds for any purpose other than as stated in written
|! |! |! |! |! |! |! |! |! |! |! |! |!
escrow instructions |!
