Page 1 of 258
NJ TITLE INSURANCE EXAM COMPLETE 300 QUESTIONS
AND CORRECT DETAILED ANSWERS LATEST UPDATE
THIS YEAR - JUST RELEASED
NJ Title Insurance Exam
QUESTION: In New Jersey title insurance companies are not required to do which of the
following?
A. Become a member of a reading bureau in order to file their forms and rates
B. File their forms with the New Jersey Department of insurance before using them.
C. Maintain loss reserves
D. Maintain evidence of having exercise sound underwriting practice for at least 15 years -
ANSWER-A
QUESTION: Which of the following best describes title insurance?
A. A contract that guarantees and owner of land that all governmental police powers have been
properly exercise and disclosed of record.
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B. A contract with indemnifies an owner of land against loss or damages from defects and title
subject to the terms of the policy.
C. A contract of adhesion which indemnifies owners of land against fraud.
D. An indemnification contract that's protects insurers from losses resulting defects in title
originating after the policy is issued. - ANSWER-B
QUESTION: In New Jersey, title companies may:
A. Issue policies on a casualty basis if they file an appropriate rate with the Commissioner.
B. Issue policies only after making an appropriate search of the records.
C. Issue policies not conforming with the forms filed with the Department provided they inform
the insured that this is an un approved form - ANSWER-B
QUESTION: Which of the following does NOT constitute rebating?
A. 30% of an agents total "book" of business for the year is derived from a single source of
controlled business
B. Waiving a fee or charge for a good customer
C. 60% of an agents total "book" of business for the year is derived from sources of controlled
business
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D. Allowing a "discount" as filed with the Department of Insurance in the company's rating plan,
for the simultaneous issue of two policies - ANSWER-D
Which of the following statements is true?
A domestic company is one chartered in this country.
B. a foreign company is one chartered in another country
C. an alien company is one chartered in another state
D. a certificate of authority is used to companies authorized to transact business in the state -
ANSWER-D
QUESTION: Which of the following statements is not true?
A. A single insurance risk can include two or more policies on the same real property.
B. A single insurance risk does not include certain mortgage interest except in fee or leasehold
policies.
C. A single insurance risk can me the insured face amount of a title insurance policy.
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D. A single insurance risk can include both real and personal property. - ANSWER-D
QUESTION: 3. The statutory definition of title insurance includes which of the following
I. Guaranteeing the correctness of title searches
II. The guaranteed by the title company of the existence of amenities in connection with the
purchase of real property.
III. The Ensuring by a title company of the validity of a mortgage loan
A. I and II only
B. II and III only
C. I and III only
D. I, II and III - ANSWER-C
QUESTION: The statutory definition of title insurance includes which of the following
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NJ TITLE INSURANCE EXAM COMPLETE 300 QUESTIONS
AND CORRECT DETAILED ANSWERS LATEST UPDATE
THIS YEAR - JUST RELEASED
NJ Title Insurance Exam
QUESTION: In New Jersey title insurance companies are not required to do which of the
following?
A. Become a member of a reading bureau in order to file their forms and rates
B. File their forms with the New Jersey Department of insurance before using them.
C. Maintain loss reserves
D. Maintain evidence of having exercise sound underwriting practice for at least 15 years -
ANSWER-A
QUESTION: Which of the following best describes title insurance?
A. A contract that guarantees and owner of land that all governmental police powers have been
properly exercise and disclosed of record.
1
,Page 2 of 258
B. A contract with indemnifies an owner of land against loss or damages from defects and title
subject to the terms of the policy.
C. A contract of adhesion which indemnifies owners of land against fraud.
D. An indemnification contract that's protects insurers from losses resulting defects in title
originating after the policy is issued. - ANSWER-B
QUESTION: In New Jersey, title companies may:
A. Issue policies on a casualty basis if they file an appropriate rate with the Commissioner.
B. Issue policies only after making an appropriate search of the records.
C. Issue policies not conforming with the forms filed with the Department provided they inform
the insured that this is an un approved form - ANSWER-B
QUESTION: Which of the following does NOT constitute rebating?
A. 30% of an agents total "book" of business for the year is derived from a single source of
controlled business
B. Waiving a fee or charge for a good customer
C. 60% of an agents total "book" of business for the year is derived from sources of controlled
business
2
,Page 3 of 258
D. Allowing a "discount" as filed with the Department of Insurance in the company's rating plan,
for the simultaneous issue of two policies - ANSWER-D
Which of the following statements is true?
A domestic company is one chartered in this country.
B. a foreign company is one chartered in another country
C. an alien company is one chartered in another state
D. a certificate of authority is used to companies authorized to transact business in the state -
ANSWER-D
QUESTION: Which of the following statements is not true?
A. A single insurance risk can include two or more policies on the same real property.
B. A single insurance risk does not include certain mortgage interest except in fee or leasehold
policies.
C. A single insurance risk can me the insured face amount of a title insurance policy.
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, Page 4 of 258
D. A single insurance risk can include both real and personal property. - ANSWER-D
QUESTION: 3. The statutory definition of title insurance includes which of the following
I. Guaranteeing the correctness of title searches
II. The guaranteed by the title company of the existence of amenities in connection with the
purchase of real property.
III. The Ensuring by a title company of the validity of a mortgage loan
A. I and II only
B. II and III only
C. I and III only
D. I, II and III - ANSWER-C
QUESTION: The statutory definition of title insurance includes which of the following
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