Maryland Title Producers Insurance: Questions &
Accurate Solutions
Trustee's deed Right Ans - A deed executed by a trustee (bankruptcy
trustee, substitute trustee or
personal representative). A trustee's deed generally does not provide any
warranties with
Trustee Right Ans - One who holds property in trust for another to secure
the performance of an
obligation. Third party under a deed of trust.
Title Insurance Right Ans - Insurance designed to indemnify against loss
resulting from defects in title.
A Title Contract that states that if the conditions are satisfied, a title policy will
be issued.
A. Covenant
B. CCR
C. Compact
D. Commitment Right Ans - D. Commitment
What is the definition of the legal term, Presumption.
A. A document need not be notarized
B. Property is assumed to be public
C. Property is assumed to be private
D. Something may be assumed without proof Right Ans - D. Something may
be assumed without proof
In an insurance contract who makes the offer?
A. The agent
B. The applicant
C. The insurer
D. The government Right Ans - The applicant
A clause in a mortgage that states that the rights of the holder of the mortgage
are subordinate to a subsequent lien is called a:
A. loan to value clause
,B. lien clause
C. future lien clause
D. subordination clause Right Ans - D. subordination clause
Which term is used to denote a security in which risk is exchanged by two
parties?
A. Trade
B. Shuffle
C. Swap
D. Switch Right Ans - C. Swap
Generally, judgement liens are effective for:
A. 3 to 5 years
B. An amount determined by state law
C. 5 to 10 years
D. 2 years Right Ans - A. 3 to 5 years
Who does an escrow agent represent?
A. The courts
B. The buyer only
C. Both the buyer and the seller
D. The seller only Right Ans - C. Both the buyer and the seller
A homeowner takes out a second mortgage on a home. Due to an error by the
title company, the first mortgage was never recorded. The second mortgage is
recorded, The first mortgage
A. has a lower lien priority than the second mortgage
B. has equal lien priority with the second mortgage
C. has lien priority over the second mortgage
D. is not recorded, so is not a lien on the property. Right Ans - D. is not
recorded, so is not a lien on the property
A stream changes it's channel, and land removed. This is known as:
A. easement
B. accretion
C. avulsion
D. accession Right Ans - C. Avulsion. Alluvion rights are those that occur
when soil is added to the property.
, Interest that would be disclosed by a survey is explicitly included in the 2006
ALTA owners policy and:
A. provides that a survey will always be performed by the insurer issuing the
2006 form.
B. is included because courts ordered ALTA to revise its policy forms so that
this coverage is provided.
C. was not explicitly included in the 1992 version of the policy.
D. was also included on the 1992 version of the policy. Right Ans - C. was
not explicitly included in the 1992 version of the policy.
If a property agents binds coverage for a risk that actually falls outside the
insurer's underwriting requirement, what kind of authority does the agent
have?
A. Implies authority
B. mediated authority
C. Apparent authority
D. Express authority Right Ans - C. Apparent authority
Including a grantee of an insured that is a trustee of beneficiary of a trust
established for estate planning purpose as an insured under the 2006 owners
policy makes it clear that coverage is provided when real estate is transferred
to:
A. An estate planning trust
B. A real estate investment trust
C. A person as the result of a bequest in a will
D. An heir of the insured Right Ans - A. An estate planning trust
In an insurance contract, what is a material fact?
A. A statement made by a witness to the signing of the insurance contract
B. A fact which would prompt an issuer to decline an insurance application or
not cover the risk related to the fact
C. A misstated zip code in the applicant's address
D. A circumstance which directly and accidentally causes loss or damage to
property Right Ans - B. A fact which would prompt an issuer to decline an
insurance application or not cover the risk related to the fact
The loan policy is a and payment from it is meant to restore an insured to the
financial position the insurer was in prior to the loss.
A Term policy
Accurate Solutions
Trustee's deed Right Ans - A deed executed by a trustee (bankruptcy
trustee, substitute trustee or
personal representative). A trustee's deed generally does not provide any
warranties with
Trustee Right Ans - One who holds property in trust for another to secure
the performance of an
obligation. Third party under a deed of trust.
Title Insurance Right Ans - Insurance designed to indemnify against loss
resulting from defects in title.
A Title Contract that states that if the conditions are satisfied, a title policy will
be issued.
A. Covenant
B. CCR
C. Compact
D. Commitment Right Ans - D. Commitment
What is the definition of the legal term, Presumption.
A. A document need not be notarized
B. Property is assumed to be public
C. Property is assumed to be private
D. Something may be assumed without proof Right Ans - D. Something may
be assumed without proof
In an insurance contract who makes the offer?
A. The agent
B. The applicant
C. The insurer
D. The government Right Ans - The applicant
A clause in a mortgage that states that the rights of the holder of the mortgage
are subordinate to a subsequent lien is called a:
A. loan to value clause
,B. lien clause
C. future lien clause
D. subordination clause Right Ans - D. subordination clause
Which term is used to denote a security in which risk is exchanged by two
parties?
A. Trade
B. Shuffle
C. Swap
D. Switch Right Ans - C. Swap
Generally, judgement liens are effective for:
A. 3 to 5 years
B. An amount determined by state law
C. 5 to 10 years
D. 2 years Right Ans - A. 3 to 5 years
Who does an escrow agent represent?
A. The courts
B. The buyer only
C. Both the buyer and the seller
D. The seller only Right Ans - C. Both the buyer and the seller
A homeowner takes out a second mortgage on a home. Due to an error by the
title company, the first mortgage was never recorded. The second mortgage is
recorded, The first mortgage
A. has a lower lien priority than the second mortgage
B. has equal lien priority with the second mortgage
C. has lien priority over the second mortgage
D. is not recorded, so is not a lien on the property. Right Ans - D. is not
recorded, so is not a lien on the property
A stream changes it's channel, and land removed. This is known as:
A. easement
B. accretion
C. avulsion
D. accession Right Ans - C. Avulsion. Alluvion rights are those that occur
when soil is added to the property.
, Interest that would be disclosed by a survey is explicitly included in the 2006
ALTA owners policy and:
A. provides that a survey will always be performed by the insurer issuing the
2006 form.
B. is included because courts ordered ALTA to revise its policy forms so that
this coverage is provided.
C. was not explicitly included in the 1992 version of the policy.
D. was also included on the 1992 version of the policy. Right Ans - C. was
not explicitly included in the 1992 version of the policy.
If a property agents binds coverage for a risk that actually falls outside the
insurer's underwriting requirement, what kind of authority does the agent
have?
A. Implies authority
B. mediated authority
C. Apparent authority
D. Express authority Right Ans - C. Apparent authority
Including a grantee of an insured that is a trustee of beneficiary of a trust
established for estate planning purpose as an insured under the 2006 owners
policy makes it clear that coverage is provided when real estate is transferred
to:
A. An estate planning trust
B. A real estate investment trust
C. A person as the result of a bequest in a will
D. An heir of the insured Right Ans - A. An estate planning trust
In an insurance contract, what is a material fact?
A. A statement made by a witness to the signing of the insurance contract
B. A fact which would prompt an issuer to decline an insurance application or
not cover the risk related to the fact
C. A misstated zip code in the applicant's address
D. A circumstance which directly and accidentally causes loss or damage to
property Right Ans - B. A fact which would prompt an issuer to decline an
insurance application or not cover the risk related to the fact
The loan policy is a and payment from it is meant to restore an insured to the
financial position the insurer was in prior to the loss.
A Term policy
