MARYLAND TITLE PRODUCERS INSURANCE EXAM QUESTIONS WITH VERIFIED ANSWERS

MARYLAND TITLE PRODUCERS INSURANCE EXAM QUESTIONS
WITH VERIFIED ANSWERS.


1) A Title Contract that states that if the conditions are satisfied, a title policy will be
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issued.
A. Covenant
B. CCR
C. Compact
D. Commitment -- Correct Answer ✔✔ D. Commitment t t t t t t




2) What is the definition of the legal term, Presumption.
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A. A document need not be notarized
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B. Property is assumed to be public t t t t t




C. Property is assumed to be private t t t t t




D. Something may be assumed without proof -- Correct Answer ✔✔ D. t t t t t t t t t t t




Something may be assumed without proof t t t t t




3) In an insurance contract who makes the offer?
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A. The agent t




B. The applicant t




C. The insurer t




D. The government -- Correct Answer ✔✔ The applicant
t t t t t t t




4) A clause in a mortgage that states that the rights of the holder of the mortgage are
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subordinate to a subsequent lien is called a: t t t t t t t




A. loan to value clause t t t




B. lien clause t




C. future lien clause t t




D. subordination clause -- Correct Answer ✔✔ D. subordination clause t t t t t t t t




5) Which term is used to denote a security in which risk is exchanged by two parties?
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A. Trade
B. Shuffle

, C. Swap
D. Switch -- Correct Answer ✔✔ C. Swap t t t t t t




6) Generally, judgement liens are effective for:
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A. 3 to 5 years t t t




B. An amount determined by state law
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C. 5 to 10 years t t t




D. 2 years -- Correct Answer ✔✔ A. 3 to 5 years
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7) Who does an escrow agent represent?
t t t t t




A. The courts t




B. The buyer only t t




C. Both the buyer and the seller t t t t t




D. The seller only -- Correct Answer ✔✔ C. Both the buyer and the seller
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8) A homeowner takes out a second mortgage on a home. Due to an error by the title
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company, the first mortgage was never recorded. The second mortgage is
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recorded, The first mortgage t t t




A. has a lower lien priority than the second mortgage
t t t t t t t t




B. has equal lien priority with the second mortgage
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C. has lien priority over the second mortgage
t t t t t t




D. is not recorded, so is not a lien on the property. -- Correct Answer ✔✔ D.
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is not recorded, so is not a lien on the property
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9) A stream changes it's channel, and land removed. This is known as:
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A. easement
B. accretion
C. avulsion
D. accession -- Correct Answer ✔✔ C. Avulsion. Alluvion rights are those that t t t t t t t t t t t t




occur when soil is added to the property. t t t t t t t




10) Interest that would be disclosed by a survey is explicitly included in the 2006 ALTA
t t t t t t t t t t t t t t t




owners policy and:
t t




A. provides that a survey will always be performed by the insurer issuing the t t t t t t t t t t t t t




2006 form. t

, B. is included because courts ordered ALTA to revise its policy forms so that
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this coverage is provided. t t t




C. was not explicitly included in the 1992 version of the policy.
t t t t t t t t t t




D. was also included on the 1992 version of the policy. -- Correct Answer ✔✔
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C. was not explicitly included in the 1992 version of the policy.
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11) If a property agents binds coverage for a risk that actually falls outside the insurer's
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underwriting requirement, what kind of authority does the agent have? t t t t t t t t t




A. Implies authority t




B. mediated authority t




C. Apparent authority t




D. Express authority -- Correct Answer ✔✔ C. Apparent authority t t t t t t t t




12) Including a grantee of an insured that is a trustee of beneficiary of a trust established
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t for estate planning purpose as an insured under the 2006 owners policy makes it
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clear that coverage is provided when real estate is transferred to:
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A. An estate planning trust t t t




B. A real estate investment trust
t t t t




C. A person as the result of a bequest in a will
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D. An heir of the insured -- Correct Answer ✔✔ A. An estate planning trust
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13) In an insurance contract, what is a material fact?
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A. A statement made by a witness to the signing of the insurance contract
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B. A fact which would prompt an issuer to decline an insurance application or
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not cover the risk related to the fact t t t t t t t




C. A misstated zip code in the applicant's address
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D. A circumstance which directly and accidentally causes loss or damage to
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property -- Correct Answer ✔✔ B. A fact which would prompt an issuer to t t t t t t t t t t t t t t




decline an insurance application or not cover the risk related to the fact
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14) The loan policy is a and payment from it is meant to restore an insured to the
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financial position the insurer was in prior to the loss.
t t t t t t t t t




A. Term policy t t




B. Contract of indemnity t t t




C. Bond t




D. surety contract -- Correct Answer ✔✔ B. Contract of indemnity
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