MaryLand State Portion of Title Producer Exam Questions &
Answers | Latest Already Graded A+ UPDATE 2026|2027!!
Q1. In Maryland, the Insurance Commissioner oversees licensing, regulation, and
consumer protection within the insurance industry. Which of the following best
describes their role in relation to title insurance?
A. Regulating real estate brokers
B. Overseeing title insurance companies and producers
C. Approving mortgage loan applications
D. Licensing attorneys
Correct Answer: B. Overseeing title insurance companies and producers
Q2. Title producer licenses in Maryland are not permanent. They must be
renewed on a recurring schedule to ensure compliance and competency. How
often does a title producer license need to be renewed?
A. Every year
B. Every 2 years
C. Every 3 years
D. Every 5 years
Correct Answer: B. Every 2 years
Q3. Title insurance is designed to protect parties in a real estate transaction. Its
primary purpose is to safeguard against what specific type of risk?
A. Guaranteeing property value
B. Protecting against undisclosed liens or title defects
C. Covering damage to the home’s structure
D. Replacing homeowner’s insurance policies
Correct Answer: B. Protecting against undisclosed liens or title defects
Q4. During closing, a Closing Protection Letter (CPL) is often issued in Maryland.
This document is primarily intended to protect which party in the transaction?
A. The seller’s real estate agent
B. The lender from settlement agent fraud
C. The buyer’s personal property
,D. The seller’s commission payout
Correct Answer: B. The lender from settlement agent fraud
Q5. When handling escrow funds in Maryland, producers must comply with state
laws about where these funds are held. Where must escrow funds be deposited?
A. Into the producer’s personal checking account
B. Into a separate, dedicated trust account
C. Held by the real estate agent until disbursement
D. Sent directly to the seller before closing
Correct Answer: B. Into a separate, dedicated trust account
Q6. Maryland requires full disclosure of conflicts of interest by title producers. If a
producer fails to disclose such a conflict, what consequence might occur?
A. Fine or suspension of license
B. Automatic cancellation of the property sale
C. Requirement to refund the buyer’s premium
D. Penalty assessed against the lender
Correct Answer: A. Fine or suspension of license
Q7. Standard owner’s title policies provide a wide range of protections, but not all
risks are covered. Which of the following is excluded from coverage?
A. Forgery within the chain of title
B. Claims by undisclosed heirs
C. Mechanic’s liens recorded before issuance
D. Zoning or land use violations
Correct Answer: D. Zoning or land use violations
Q8. Title commitments provide important information before issuance of a policy.
They include exceptions, requirements, and search results. Which of the following
is not part of a commitment?
A. Exceptions to coverage
B. Requirements for issuing the policy
C. Buyer’s credit history
D. Effective date of title search
Correct Answer: C. Buyer’s credit history
Q9. Maryland requires all forms used for title insurance policies to be reviewed
, for compliance. Who has the authority to approve these forms before they are
used?
A. Local county clerk
B. The underwriter alone
C. The Maryland Insurance Administration
D. The Real Estate Commission
Correct Answer: C. The Maryland Insurance Administration
Q10. A title may have small imperfections but still be considered acceptable for
insurance purposes. What is the proper definition of “insurable title”?
A. Title with no encumbrances whatsoever
B. Title acceptable to a reasonable and prudent insurer
C. Title that guarantees current market value
D. Title issued only by government authorities
Correct Answer: B. Title acceptable to a reasonable and prudent insurer
Q11. Title producers are required to retain their business records, including
escrow account details and settlement records. For how many years must these
records be kept in Maryland?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Correct Answer: C. 5 years
Q12. A lender’s title policy differs from an owner’s policy because it is designed to
protect which specific party in the transaction?
A. The seller
B. The mortgage lender
C. The buyer’s heirs
D. The real estate broker
Correct Answer: B. The mortgage lender
Q13. Escrow handling is one of the most critical responsibilities of a title
producer. If a Maryland producer commingles client escrow funds with personal
funds, what penalty could occur?
A. License suspension or revocation
B. Warning letter only
Answers | Latest Already Graded A+ UPDATE 2026|2027!!
Q1. In Maryland, the Insurance Commissioner oversees licensing, regulation, and
consumer protection within the insurance industry. Which of the following best
describes their role in relation to title insurance?
A. Regulating real estate brokers
B. Overseeing title insurance companies and producers
C. Approving mortgage loan applications
D. Licensing attorneys
Correct Answer: B. Overseeing title insurance companies and producers
Q2. Title producer licenses in Maryland are not permanent. They must be
renewed on a recurring schedule to ensure compliance and competency. How
often does a title producer license need to be renewed?
A. Every year
B. Every 2 years
C. Every 3 years
D. Every 5 years
Correct Answer: B. Every 2 years
Q3. Title insurance is designed to protect parties in a real estate transaction. Its
primary purpose is to safeguard against what specific type of risk?
A. Guaranteeing property value
B. Protecting against undisclosed liens or title defects
C. Covering damage to the home’s structure
D. Replacing homeowner’s insurance policies
Correct Answer: B. Protecting against undisclosed liens or title defects
Q4. During closing, a Closing Protection Letter (CPL) is often issued in Maryland.
This document is primarily intended to protect which party in the transaction?
A. The seller’s real estate agent
B. The lender from settlement agent fraud
C. The buyer’s personal property
,D. The seller’s commission payout
Correct Answer: B. The lender from settlement agent fraud
Q5. When handling escrow funds in Maryland, producers must comply with state
laws about where these funds are held. Where must escrow funds be deposited?
A. Into the producer’s personal checking account
B. Into a separate, dedicated trust account
C. Held by the real estate agent until disbursement
D. Sent directly to the seller before closing
Correct Answer: B. Into a separate, dedicated trust account
Q6. Maryland requires full disclosure of conflicts of interest by title producers. If a
producer fails to disclose such a conflict, what consequence might occur?
A. Fine or suspension of license
B. Automatic cancellation of the property sale
C. Requirement to refund the buyer’s premium
D. Penalty assessed against the lender
Correct Answer: A. Fine or suspension of license
Q7. Standard owner’s title policies provide a wide range of protections, but not all
risks are covered. Which of the following is excluded from coverage?
A. Forgery within the chain of title
B. Claims by undisclosed heirs
C. Mechanic’s liens recorded before issuance
D. Zoning or land use violations
Correct Answer: D. Zoning or land use violations
Q8. Title commitments provide important information before issuance of a policy.
They include exceptions, requirements, and search results. Which of the following
is not part of a commitment?
A. Exceptions to coverage
B. Requirements for issuing the policy
C. Buyer’s credit history
D. Effective date of title search
Correct Answer: C. Buyer’s credit history
Q9. Maryland requires all forms used for title insurance policies to be reviewed
, for compliance. Who has the authority to approve these forms before they are
used?
A. Local county clerk
B. The underwriter alone
C. The Maryland Insurance Administration
D. The Real Estate Commission
Correct Answer: C. The Maryland Insurance Administration
Q10. A title may have small imperfections but still be considered acceptable for
insurance purposes. What is the proper definition of “insurable title”?
A. Title with no encumbrances whatsoever
B. Title acceptable to a reasonable and prudent insurer
C. Title that guarantees current market value
D. Title issued only by government authorities
Correct Answer: B. Title acceptable to a reasonable and prudent insurer
Q11. Title producers are required to retain their business records, including
escrow account details and settlement records. For how many years must these
records be kept in Maryland?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Correct Answer: C. 5 years
Q12. A lender’s title policy differs from an owner’s policy because it is designed to
protect which specific party in the transaction?
A. The seller
B. The mortgage lender
C. The buyer’s heirs
D. The real estate broker
Correct Answer: B. The mortgage lender
Q13. Escrow handling is one of the most critical responsibilities of a title
producer. If a Maryland producer commingles client escrow funds with personal
funds, what penalty could occur?
A. License suspension or revocation
B. Warning letter only
