Missouri Title Insurance Producer Exam EXPECTED
QUESTIONS WITH VERIFIED ANSWERS
Question 1.
Title Insurance
ANSWER
Insured statement of the condition of title or ownership of real property. For a one-time-only
premium, the named insured and their heirs are protected against title defects, liens,
encumbrances existing as of the date of the policy and not specifically excluded from it. In the
event of a claim , the title company provides legal defense from the policyholder and pays any
covered losses incurred as a result of such claim.
Question 2.
Commitment/Binder 1
ANSWER
Also called a "preliminary certificate", it's a contract with a title company to issue a specific title
policy, showing only those exceptions contained in the -- and any intervening matters after the
date of the -- and prior to the effective date of the policy. The -- contains all information
included in the preliminary title report, plus a list of requirements that must be met in order to
insure the transaction and standard exceptions from coverage that will appear in the policy
Question 3.
Commitment/Binder 2
ANSWER
1. A preliminary report as to the condition of a title and a -- to issue a title insurance policy
when certain conditions are met.
2. A document issued by a title insurance company that contains the conditions under which a
policy of title insurance will be issued.
Question 4.
Endorsement
ANSWER
An addition to or modification of a title insurance policy which expands or changes coverage of
the policy, fulfilling specific requirements of the insured.
,Question 5.
Exception
ANSWER
A provision in a title insurance binder or policy that excludes liability for a specific title defect
or an outstanding lien or encumbrance, such as easements and restrictions
Question 6.
Requirements
ANSWER
Conditions in a title insurance binder that must be met or otherwise cleared before title can be
insured and a policy can be issued,
Question 7.
Encumbrance
ANSWER
Anything which affects or limits the fee simple title to property, such as mortgages,
easements, or restrictions which do not prevent alienation of the fee title by the owner. Liens
are special -- which make the property security for the debt.
Question 8.
Encroachment
ANSWER
The situation that exists when a structure is built in whole or part on a neighboring property.
Disputes arising from a confusion of boundaries may be the result
of incorrect surveys, or mistakes by builders and/or owners when erecting an improvement;
and may be generally settled by an action at law. However, courts of equity will entertain a bill
for the settlement of boundaries when the rights may be established upon equitable grounds.
-- may be corrected by giving or selling the said party an easement or lease for the lifetime of
the building, or in the case of small structures, actually moving it onto the owner's own
property.
,Question 9.
Insurance Companies
ANSWER
Protect individuals and organizations from financial loss by assuming risk. They analyze
information in insurance applications to determine if a risk is acceptable and is not expected to
result in a loss. Applications are often supplemented with reports from loss-control
consultants.
Question 10.
Underwriters
ANSWER
Must decide whether top issue the policy, the appropriate premium to charge, and write
policies that cover these risks. In making this determination, -- serve as the main link between
the insurance carrier and the insurance agent. An insurance company may lose business if the
-- appraises risks too conservatively, or may have to pay claims if the -- actions are too liberal.
Question 11.
Chain of Title
ANSWER
The history of passing of title ownership from the present owner back to the original owner.
They include notations of deeds, distribution from estates, certificates of death, foreclosures,
quiet title, and other recorded transfers of title. Before purchasing property, the purchaser will
usually hire a title company to search out the -- and provide a report. In many real estate
transactions, insurance companies issue title insurance based upon the -- to the property
when it is transferred.
Question 12.
Closing and Settlement
ANSWER
In a real estate transaction, the -- is the final exchange in the sale and purchase of real estate
where the title is transferred, financial documents are executed, title insurance policies are
created, and costs are paid. Some of the final documents are then delivered to the county
recorder to be recorded. Depending on local practice, the -- is handled by a title company,
escrow company, or attorney.
, Question 13.
Escrow
ANSWER
The deposit of instruments, funds and instructions to an independent third party to carry out
the provisions of an agreement or contracts. When everything is deposited to enable carrying
out the instructions, it is complete and perfect --. The transfer of property or document is
completed upon fulfillment of specified conditions, whereupon the necessary deeds and other
instruments are recorded.
Question 14.
Transfer Tax and Recording
ANSWER
In the state of Missouri, there is no -- (which is a tax paid by a buyer or seller each time a
property is transferred, as evidenced by the recorder of deeds).
Question 15.
Paper - Document Formatting Requirements
ANSWER
- White, light-colored, 20# weight without watermarks or logos
- Printed in black or dark ink on one side only
- No continuous forms or permanent binding; stapled documents are acceptable
Question 16.
Margins & Formatting - Document Formatting Requirements
ANSWER
- First page shall have top 3 inches of vertical space for recorder's use shall be blank
- Minimum 3/4" margins on all other margins on first page and all subsequent pages
- Print or type size shall not be smaller than 8-point type (non-essential information such as
page numbers, form numbers, etc., is exempt)
- Document must be sufficiently legible to produce a clear and legible reproduction
QUESTIONS WITH VERIFIED ANSWERS
Question 1.
Title Insurance
ANSWER
Insured statement of the condition of title or ownership of real property. For a one-time-only
premium, the named insured and their heirs are protected against title defects, liens,
encumbrances existing as of the date of the policy and not specifically excluded from it. In the
event of a claim , the title company provides legal defense from the policyholder and pays any
covered losses incurred as a result of such claim.
Question 2.
Commitment/Binder 1
ANSWER
Also called a "preliminary certificate", it's a contract with a title company to issue a specific title
policy, showing only those exceptions contained in the -- and any intervening matters after the
date of the -- and prior to the effective date of the policy. The -- contains all information
included in the preliminary title report, plus a list of requirements that must be met in order to
insure the transaction and standard exceptions from coverage that will appear in the policy
Question 3.
Commitment/Binder 2
ANSWER
1. A preliminary report as to the condition of a title and a -- to issue a title insurance policy
when certain conditions are met.
2. A document issued by a title insurance company that contains the conditions under which a
policy of title insurance will be issued.
Question 4.
Endorsement
ANSWER
An addition to or modification of a title insurance policy which expands or changes coverage of
the policy, fulfilling specific requirements of the insured.
,Question 5.
Exception
ANSWER
A provision in a title insurance binder or policy that excludes liability for a specific title defect
or an outstanding lien or encumbrance, such as easements and restrictions
Question 6.
Requirements
ANSWER
Conditions in a title insurance binder that must be met or otherwise cleared before title can be
insured and a policy can be issued,
Question 7.
Encumbrance
ANSWER
Anything which affects or limits the fee simple title to property, such as mortgages,
easements, or restrictions which do not prevent alienation of the fee title by the owner. Liens
are special -- which make the property security for the debt.
Question 8.
Encroachment
ANSWER
The situation that exists when a structure is built in whole or part on a neighboring property.
Disputes arising from a confusion of boundaries may be the result
of incorrect surveys, or mistakes by builders and/or owners when erecting an improvement;
and may be generally settled by an action at law. However, courts of equity will entertain a bill
for the settlement of boundaries when the rights may be established upon equitable grounds.
-- may be corrected by giving or selling the said party an easement or lease for the lifetime of
the building, or in the case of small structures, actually moving it onto the owner's own
property.
,Question 9.
Insurance Companies
ANSWER
Protect individuals and organizations from financial loss by assuming risk. They analyze
information in insurance applications to determine if a risk is acceptable and is not expected to
result in a loss. Applications are often supplemented with reports from loss-control
consultants.
Question 10.
Underwriters
ANSWER
Must decide whether top issue the policy, the appropriate premium to charge, and write
policies that cover these risks. In making this determination, -- serve as the main link between
the insurance carrier and the insurance agent. An insurance company may lose business if the
-- appraises risks too conservatively, or may have to pay claims if the -- actions are too liberal.
Question 11.
Chain of Title
ANSWER
The history of passing of title ownership from the present owner back to the original owner.
They include notations of deeds, distribution from estates, certificates of death, foreclosures,
quiet title, and other recorded transfers of title. Before purchasing property, the purchaser will
usually hire a title company to search out the -- and provide a report. In many real estate
transactions, insurance companies issue title insurance based upon the -- to the property
when it is transferred.
Question 12.
Closing and Settlement
ANSWER
In a real estate transaction, the -- is the final exchange in the sale and purchase of real estate
where the title is transferred, financial documents are executed, title insurance policies are
created, and costs are paid. Some of the final documents are then delivered to the county
recorder to be recorded. Depending on local practice, the -- is handled by a title company,
escrow company, or attorney.
, Question 13.
Escrow
ANSWER
The deposit of instruments, funds and instructions to an independent third party to carry out
the provisions of an agreement or contracts. When everything is deposited to enable carrying
out the instructions, it is complete and perfect --. The transfer of property or document is
completed upon fulfillment of specified conditions, whereupon the necessary deeds and other
instruments are recorded.
Question 14.
Transfer Tax and Recording
ANSWER
In the state of Missouri, there is no -- (which is a tax paid by a buyer or seller each time a
property is transferred, as evidenced by the recorder of deeds).
Question 15.
Paper - Document Formatting Requirements
ANSWER
- White, light-colored, 20# weight without watermarks or logos
- Printed in black or dark ink on one side only
- No continuous forms or permanent binding; stapled documents are acceptable
Question 16.
Margins & Formatting - Document Formatting Requirements
ANSWER
- First page shall have top 3 inches of vertical space for recorder's use shall be blank
- Minimum 3/4" margins on all other margins on first page and all subsequent pages
- Print or type size shall not be smaller than 8-point type (non-essential information such as
page numbers, form numbers, etc., is exempt)
- Document must be sufficiently legible to produce a clear and legible reproduction
