LOUISIANA INSURANCE EXAM PREP (TITLE), LOUISIANA TITLE INSURANCE EXAM ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS

LOUISIANA INSURANCE EXAM PREP (TITLE), LOUISIANA TITLE INSURANCE EXAM ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS CONTRACTS - Aleatory Contract - Answer -A contract in which the performance of either party's obligation depends on an uncertain event INSURANCE - Benchmark Rate(s) - Answer -The rate set annually by the Commissioner of Insurance by line, relative to which the flexibility bands and statutory rate limitations apply. INSURANCE - Churning - Answer -Can occur when an agent persuades a consumer to borrow against an existing life insurance policy to pay the premium on a new one. INSURANCE - Dividend - Answer -The amount of money an insurance company may decide to distribute to policyholders. INSURANCE - Insurable Interest - Answer -A financial interest in the property insured, prerequisite to a valid contract of insurance. In life insurance, a person's or party's interest, financial or emotional, in the continuing life of the insured.INSURANCE - Misrepresentation (Material) - Answer -A significant misstatement in an application form. If a company had access to the correct information at the time of application, the company might not have agreed to accept the application. INSURANCE - Rated Policy - Answer -A policy issued at a higher premium to cover a person classified as a greater-than-average risk, usually due to impaired health or a dangerous occupation. INSURANCE - Redlining - Answer -Refusal by an insurance company to underwrite or to continue to underwrite questionable risks in a given geographical area. INSURANCE - Surplus Lines - Answer -Insurance coverage not available from an admitted company in the regular market; thus a surplus lines broker/agent representing an applicant seeks coverage in the surplus lines market from a nonadmitted insurer according to the insurance regulations of a particular state. INSURANCE - Underwriting - Answer -An insurance company issues a policy when it believes you have a certain level of "risk" or chance of a claim. Underwriting is the process the company uses to decide whether to accept or reject an application. Companies do not make their underwriting guidelines public because they are considered to be trade secrets. INSURANCE - Unearned Premium - Answer -The insured's remaining premium equity in his policy; that part of the policy premium that has not been "used up." INSURANCE - Annuity - Answer -contract sold by insurance companies that pays a monthly (or quarterly, semiannual, or annual) incomebenefit for the life of a person (annuitant), for the lives of two or more persons, or for a specified period of time. INSURANCE - Binder - Answer -temporary insurance contract providing coverage until a permanent policy is issued. INSURANCE - Reinsurance - Answer -form of insurance that insurance companies buy for their own protection, "a sharing of insurance." An insurer (the reinsured) reduces its possible maximum loss on either an individual risk or a large number of risks by giving (ceding) a portion of liability to another insurance company (reinsurer). PROPERTY - Real Property - Answer -immovable property PROPERTY - Personal Property - Answer -movable property, exluded from sale PROPERTY RIGHTS - Appurtenances - Answer -rights, privileges, improvements that will pass to the new owner upon conveyance of the land PROPERTY - Improvements - An