LOUISIANA TITLE INSUARANCE EXAM 2026/2027 PRACTICE
QUESTIONS AND A NEW UPDATED STUDY GUIDE
ACCURATE EXAM APPROVED QUESTIONS AND CORRECT
VERIFIED ANSWERS WITH DETAILED RATIONALES (A
NEW UPDATED VERSION 2026 EDITION) |ALREADY
GRADED A+ (BRAND NEW!) FULL REVISED LOUISIANA
TITLE INSUARANCE EXAM
1. Which of the following best defines the purpose of title insurance?
A) To guarantee the physical condition of the property
B) To protect against losses from defects in title that exist as of the
policy date
C) To insure the current market value of the property
D) To cover future zoning changes affecting the property
CORRECT ANSWER: B – Title insurance protects against losses
arising from defects, liens, or encumbrances that existed on the title prior
to the policy effective date. It does not insure physical condition, market
value fluctuations, or future governmental actions like zoning changes.
Rationale: Title insurance is retrospective, covering past title issues
not discoverable through a standard title search, unlike property or
casualty insurance which is forward-looking.
2. A Louisiana title insurance policy typically contains which of the
following two main coverage parts?
,A) Loan policy and leasehold policy
B) Owner’s policy and lender’s policy
C) Survey policy and tax policy
D) Abstract policy and attorney’s opinion policy
CORRECT ANSWER: B – The two primary title insurance policies are
the owner’s policy (protecting the property buyer) and the lender’s
policy (protecting the mortgage lender’s security interest).
Rationale: In Louisiana, as elsewhere, the lender’s policy amount
decreases as the loan is paid down, while the owner’s policy remains
at the purchase price for covered risks.
3. Under Louisiana law, a title insurance policy must be issued by:
A) Any licensed real estate agent
B) Any licensed Louisiana attorney
C) A title insurance producer licensed by the Louisiana Department of
Insurance
D) A notary public with 10 years of experience
CORRECT ANSWER: C – Only title insurance producers (agents) or
direct underwriters licensed by the Louisiana Department of Insurance
may issue title insurance policies.
,Rationale: Louisiana Revised Statutes Title 22 requires licensing of
title insurance producers; real estate agents, attorneys, and notaries
are not automatically authorized.
4. A “marked-up exception” in a Louisiana title commitment refers to:
A) An exception that the insurer refuses to remove under any
circumstances
B) An exception that has been deleted or modified based on curative
evidence provided
C) A tax lien that exceeds 50% of the property value
D) A survey discrepancy that is automatically waived
CORRECT ANSWER: B – “Marked up” means the title agent has
reviewed the exception and, based on curative documents (e.g., release
of lien), has removed or modified it from the final policy.
Rationale: The commitment lists exceptions; those that are satisfied or
resolved are marked as deleted or amended before the policy is issued.
5. Which of the following is a standard exception in most Louisiana
owner’s title insurance policies unless eliminated by an endorsement?
A) Rights of tenants in possession
B) Federal estate tax liens
C) Pre-existing mortgages
D) Zoning ordinances
, CORRECT ANSWER: D – Zoning ordinances, land use regulations, and
building setback lines are standard exceptions unless specific zoning
endorsements are purchased.
Rationale: Title insurance does not guarantee compliance with
zoning; a zoning endorsement requires additional underwriting and
premium.
6. The “curative period” in Louisiana title insurance practice is best
described as:
A) The time after closing during which the insurer can cancel the policy
B) The time allowed between title commitment and closing to resolve
title defects
C) The mandatory 30-day waiting period for property inspections
D) The period after recording the deed to file a claim
CORRECT ANSWER: B – The curative period is the timeframe
between issuance of the title commitment and the closing date, during
which the buyer or seller can cure defects (e.g., pay off liens, correct
errors).
Rationale: Standard practice allows 10–30 days, but this varies by
contract and underwriter.
QUESTIONS AND A NEW UPDATED STUDY GUIDE
ACCURATE EXAM APPROVED QUESTIONS AND CORRECT
VERIFIED ANSWERS WITH DETAILED RATIONALES (A
NEW UPDATED VERSION 2026 EDITION) |ALREADY
GRADED A+ (BRAND NEW!) FULL REVISED LOUISIANA
TITLE INSUARANCE EXAM
1. Which of the following best defines the purpose of title insurance?
A) To guarantee the physical condition of the property
B) To protect against losses from defects in title that exist as of the
policy date
C) To insure the current market value of the property
D) To cover future zoning changes affecting the property
CORRECT ANSWER: B – Title insurance protects against losses
arising from defects, liens, or encumbrances that existed on the title prior
to the policy effective date. It does not insure physical condition, market
value fluctuations, or future governmental actions like zoning changes.
Rationale: Title insurance is retrospective, covering past title issues
not discoverable through a standard title search, unlike property or
casualty insurance which is forward-looking.
2. A Louisiana title insurance policy typically contains which of the
following two main coverage parts?
,A) Loan policy and leasehold policy
B) Owner’s policy and lender’s policy
C) Survey policy and tax policy
D) Abstract policy and attorney’s opinion policy
CORRECT ANSWER: B – The two primary title insurance policies are
the owner’s policy (protecting the property buyer) and the lender’s
policy (protecting the mortgage lender’s security interest).
Rationale: In Louisiana, as elsewhere, the lender’s policy amount
decreases as the loan is paid down, while the owner’s policy remains
at the purchase price for covered risks.
3. Under Louisiana law, a title insurance policy must be issued by:
A) Any licensed real estate agent
B) Any licensed Louisiana attorney
C) A title insurance producer licensed by the Louisiana Department of
Insurance
D) A notary public with 10 years of experience
CORRECT ANSWER: C – Only title insurance producers (agents) or
direct underwriters licensed by the Louisiana Department of Insurance
may issue title insurance policies.
,Rationale: Louisiana Revised Statutes Title 22 requires licensing of
title insurance producers; real estate agents, attorneys, and notaries
are not automatically authorized.
4. A “marked-up exception” in a Louisiana title commitment refers to:
A) An exception that the insurer refuses to remove under any
circumstances
B) An exception that has been deleted or modified based on curative
evidence provided
C) A tax lien that exceeds 50% of the property value
D) A survey discrepancy that is automatically waived
CORRECT ANSWER: B – “Marked up” means the title agent has
reviewed the exception and, based on curative documents (e.g., release
of lien), has removed or modified it from the final policy.
Rationale: The commitment lists exceptions; those that are satisfied or
resolved are marked as deleted or amended before the policy is issued.
5. Which of the following is a standard exception in most Louisiana
owner’s title insurance policies unless eliminated by an endorsement?
A) Rights of tenants in possession
B) Federal estate tax liens
C) Pre-existing mortgages
D) Zoning ordinances
, CORRECT ANSWER: D – Zoning ordinances, land use regulations, and
building setback lines are standard exceptions unless specific zoning
endorsements are purchased.
Rationale: Title insurance does not guarantee compliance with
zoning; a zoning endorsement requires additional underwriting and
premium.
6. The “curative period” in Louisiana title insurance practice is best
described as:
A) The time after closing during which the insurer can cancel the policy
B) The time allowed between title commitment and closing to resolve
title defects
C) The mandatory 30-day waiting period for property inspections
D) The period after recording the deed to file a claim
CORRECT ANSWER: B – The curative period is the timeframe
between issuance of the title commitment and the closing date, during
which the buyer or seller can cure defects (e.g., pay off liens, correct
errors).
Rationale: Standard practice allows 10–30 days, but this varies by
contract and underwriter.
