Louisiana Insurance Exam Prep (Title),
Louisiana Title Insurance Exam
Questions and Answers Latest Version
Already Passed
What is the difference between a lender’s title insurance policy and an owner’s title insurance
policy?
✔✔The lender’s policy protects the lender’s interest in the property, while the owner’s policy
protects the buyer’s interest.
What is an abstract of title?
✔✔A summary of the public records related to the ownership history of a property.
What is the role of the title insurer?
✔✔The title insurer protects against financial loss due to defects in the title and issues the title
insurance policy.
What is the chain of title?
✔✔The historical sequence of events showing the transfer of ownership of a property.
1
,What does “marketable title” refer to in title insurance?
✔✔A title that is free from defects or issues that could affect its transferability or ownership.
What is a title commitment?
✔✔A document issued by a title insurance company that outlines the terms and conditions under
which a title insurance policy will be issued.
What is a title search?
✔✔A process of examining public records to determine the legal ownership of a property and
uncover any potential issues with the title.
What is an encumbrance?
✔✔A claim, lien, or liability attached to a property that may affect its title or use.
What is a deed restriction?
✔✔A limitation or condition placed on the use or transfer of property by the seller or a
governing body.
2
,What is a lien?
✔✔A legal claim against property for the payment of a debt.
What does a title insurance policy typically cover?
✔✔It covers losses resulting from defects in title, such as unknown liens, fraudulent claims, or
mistakes in the public record.
What is the "effective date" of a title insurance policy?
✔✔The date when the title insurance policy becomes active, often the date of closing or the date
a title commitment is issued.
What is the purpose of a title endorsement?
✔✔To modify or add coverage to a title insurance policy to address specific risks or issues
related to the property.
What does “constructive notice” mean in relation to title insurance?
✔✔A legal concept that ensures a person is presumed to have knowledge of a document once it
is publicly recorded.
3
, What is a quitclaim deed?
✔✔A type of deed that transfers whatever interest the grantor has in a property without any
warranties or guarantees.
What is a warranty deed?
✔✔A type of deed in which the grantor guarantees that they hold clear title to the property and
have the right to sell it.
What is a title defect?
✔✔Any issue or claim against the title that could affect the property’s ownership or
marketability.
What is an affidavit of title?
✔✔A sworn statement by the seller that discloses any known defects, encumbrances, or claims
against the title of the property.
What does “cloud on the title” mean?
✔✔An unresolved issue or claim on a property’s title that may affect its transfer or validity.
4
Louisiana Title Insurance Exam
Questions and Answers Latest Version
Already Passed
What is the difference between a lender’s title insurance policy and an owner’s title insurance
policy?
✔✔The lender’s policy protects the lender’s interest in the property, while the owner’s policy
protects the buyer’s interest.
What is an abstract of title?
✔✔A summary of the public records related to the ownership history of a property.
What is the role of the title insurer?
✔✔The title insurer protects against financial loss due to defects in the title and issues the title
insurance policy.
What is the chain of title?
✔✔The historical sequence of events showing the transfer of ownership of a property.
1
,What does “marketable title” refer to in title insurance?
✔✔A title that is free from defects or issues that could affect its transferability or ownership.
What is a title commitment?
✔✔A document issued by a title insurance company that outlines the terms and conditions under
which a title insurance policy will be issued.
What is a title search?
✔✔A process of examining public records to determine the legal ownership of a property and
uncover any potential issues with the title.
What is an encumbrance?
✔✔A claim, lien, or liability attached to a property that may affect its title or use.
What is a deed restriction?
✔✔A limitation or condition placed on the use or transfer of property by the seller or a
governing body.
2
,What is a lien?
✔✔A legal claim against property for the payment of a debt.
What does a title insurance policy typically cover?
✔✔It covers losses resulting from defects in title, such as unknown liens, fraudulent claims, or
mistakes in the public record.
What is the "effective date" of a title insurance policy?
✔✔The date when the title insurance policy becomes active, often the date of closing or the date
a title commitment is issued.
What is the purpose of a title endorsement?
✔✔To modify or add coverage to a title insurance policy to address specific risks or issues
related to the property.
What does “constructive notice” mean in relation to title insurance?
✔✔A legal concept that ensures a person is presumed to have knowledge of a document once it
is publicly recorded.
3
, What is a quitclaim deed?
✔✔A type of deed that transfers whatever interest the grantor has in a property without any
warranties or guarantees.
What is a warranty deed?
✔✔A type of deed in which the grantor guarantees that they hold clear title to the property and
have the right to sell it.
What is a title defect?
✔✔Any issue or claim against the title that could affect the property’s ownership or
marketability.
What is an affidavit of title?
✔✔A sworn statement by the seller that discloses any known defects, encumbrances, or claims
against the title of the property.
What does “cloud on the title” mean?
✔✔An unresolved issue or claim on a property’s title that may affect its transfer or validity.
4
