LOUISIANA TITLE INSURANCE EXAM 2026
COMPLETE QUESTION SET AND CORRECT
ANSWERS GRADED A PLUS
◉ 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) income benefit 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.
Answer: immovable object that has been attached to the land and
increases the value, such as fences and driveways
◉ PROPERTY RIGHTS (Surface) - Riparian.
Answer: having to do with water
◉ PROPERTY RIGHTS (Surface) - Riparian (navigable waters).
Answer: identified waterway on a federal survey map, owned by the
state, can be sold or leased, leased term is 15 years
COMPLETE QUESTION SET AND CORRECT
ANSWERS GRADED A PLUS
◉ 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) income benefit 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.
Answer: immovable object that has been attached to the land and
increases the value, such as fences and driveways
◉ PROPERTY RIGHTS (Surface) - Riparian.
Answer: having to do with water
◉ PROPERTY RIGHTS (Surface) - Riparian (navigable waters).
Answer: identified waterway on a federal survey map, owned by the
state, can be sold or leased, leased term is 15 years
