Exam Questions Flashcards
Pursuant to Maryland anti-rebating statute, the following items cannot be given to a client as inducement for business
home warranty, legal services, uber rides
permissible promotional items used in marketing title insurance services include
pens, calendars and mugs,
the loan estimate form must be given to a consumers
at least three days after submitting a loan application
a producer may not knowingly offer, promise, or give any valuable consideration not specified in the policy, except for education materials, promotional materials, or articles of merchandise that cost no more
than $50 regardless of whether a policy is purchased
Which pre-requisite is not required to become a title producer
be at least twenty-one years of age
giving something of value in exchange to an insured to induce the purchase of an insurance policy is
rebating
the blocked person’s list of specifically designated nationals is maintained by
department of treasury
the closing disclosure form must be delivered
three days before settlement
Pursuant to RESPA, the only thing of value that can be received by an affiliate business in a title insurance transaction is
a fee as defined by the company bylaws
RESPA applies to
residential transactions involving 1-4 family units. It DOES NOT apply to commercial transactions
Insurers must maintain for inspection by the Maryland Insurance Administration
a producer’s register
A title insurer must update their producer’s register within how many days of a termination or an appointment
30 days
The commissioner of insurance has the authority to do all of the following except
change state insurance law at any time
In Maryland criminal or prohibited acts committed by insurance producers under Maryland insurance law are prosecuted by
The attorney general’s office
Which of the following statements best describe insurance rates
the regulatory objectives of insurance rating are that rates shall be adequate, not excessive and not unfairly discriminatory
The following is true regarding remote online notarizations
the law became effective October 1, 2020
page one of maryland intake sheet
will accommodate two documents and an addendum can be used for the remaining documents
Non-allowable behavior pursuant to RESPA includes
all of the above
The authority given by an insurance company to agent that is usually not specifically told or communicated is called
implied authority
Pursuant to RESPA when there is an affiliated business arrangement fees appearing on a closing disclosure should only be charged based on
services rendered
pursuant to Maryland’s wet settlement act in purchase transaction funds must be disbursed
the day of settlement
a simultaneous issue rate is given when
a buyer purchases an owner’s and lender’s policy
which of the following statements is correct about the insurance commissioner
all of the above ( he or she is appointed by the governor, he or she can demand an examination of records, he or she can approve deny or revoke a license)
the maximum penalty for someone in the insurance business who has been prosecuted and convicted by the attorney general for knowingly engaging in fraud is
10 years in prison and a $50,000 fine
when a title company established an escrow account the account must be labeled as
a trust account
unless specified in the deed of trust, the most that can be charged for a release in Maryland is
$15
Non-MD residents who sell property in MD are charged a percentage based on what
total payment
which of the following statements is with regards to rebating
all of the above (rebating is a form of unfair discrimination, rebating is illegal under maryland insurance laws and laws related to unfair practices, rebating is the act of giving back the insured money or some other form of consideration for the purpose of inducing the person to purchase insurance)
Unclaimed checks must be handled pursuant to
Maryland’s escheatment law
Maryland is a RATE file and use state. This means
the insurer can file a rate and use if the Commissioner doesn’t object within 30 days
A fiduciary or agency relationship exist between
underwriters and title insurance producers, title insurance producers and independent contractors, and title insurance producers and lenders
Which of the following is required before a Title Insurance Agency/ Title Insurer ca be issued a certificate of authority
they must be organized as a stock company or mutual insurance company and if a stock company, they must have and maintain $750,000 paid-in capital stock
This relationship between a title insurance producer and a TIPIC can be best described as
principal and agent
Express authority can be described as
written or oral
The Maryland Affordable Housing Trust
is managed by the department of housing and community development, requires title companies to deposit funds into their MAHT account when interest on deposits will be less than 50 dollars, is a type of escrow account and permits commingling (all of the above)
A title insurance producer’s license must be renewed
every other year
instead of your typical escrow account, an attorney can establish
and IOLTA account
In Maryland, title insurance rates
all of the above (are competitive, must be filled with insurance commissioner, must be approved by the insurance commissioner)
A title agent can do business with a title producer as long as
the title producer is licensed
The most common discount for a title policy reissue rate is
40%
Beginning October 1, 2024 the maximum monetary penalty that the administration may impose upon a licensed insurance producer for each violation of the insurance article is
$5000
A person who bears special relationship of trust and responsibility in an agency relationship
all of the above (fiduciary, agent, trustee)
how often must a producer sent out privacy notice to customers
annually
producers are required to notify the insurance department within
30 days of any change of address
a foreign insurer is
an insurance company that is incorporated and domiciled outside the state of maryland but in another state in the US
the purpose of the statutory notice regarding title insurance is to protect
owners who are consumers of title insurance products
another name for an impound account is
an escrow account
the consumer is informed of the right to purchase an owner’s title insurance policy and its cost on what type of document
statutory notice to buyer
A title agent is required to received the following number of continuing education hours prior to renewal
16 hours
this type of misrepresentation occurs when a person makes incomplete comparisons about the terms and conditions of a policy for the purpose of inducing a policy holder to forfeit, surrender, retain exchange, convert or allow a policy to lapse is known as
twisting
a producer’s register should be updated
every 30 days
a title producer must comply with the commissioner’s request
to examine records, to provide documents, and to respond to complaints
businesses that are controlled by a common corporation and offer settlement services are called
all of the above (ABA, an affiliated business, an affiliated business arangement)
At the last land title association meeting, Jack the owner of an insurance company, told members that Diane’s insurance business was failing although it is not . This is an example of
Defamation
Rates for title insurance are regulated by
state insurance agencies
the statutory notice of availability of title insurance must be maintained by the title company for
3 years
Pursuant to a Fair credit reporting act, anyone who uses a credit report to deny an application for insurance or take an adverse action against a consumer must do which of the following:
tell the consumer, given the name, address and phone number of the agency that provided the information (both a and b)
if a deed is not dated on page 1 the date of the deed will be
the last acknowledgement date
underwriters are required to conduct audits of their title agents/companies or examine the books of their title agents/companies
at least once every year
a title insurer has a right to examiner the records of a title producer
at any reasonable time
if a lender fails to disburse funds at time of settlement
the lender may not charge interest to the borrower for the first 30 days after closing
types of illegal rebating and acts prohibited by RESPA include
all of the above (a title company offering you something of value for business, a title company offering something of value for steering business to their company, a rebate on the title premium)
A title insurance producer can be
all of the above ( license individual who provides closing and settlement services, title insurance insurer, a person who solicits title)
Who may exercise control over escrow funds maintained in a title agency escrow account
licensed title producer
exceptions to the anti-rebating statute allows for which of the following marketing activities
all of the above are exceptions to anti-rebating statute regardless of whether a policy is purchased
which of the following is true regarding real estate transaction in MD by non-resident sellers
Non-resident individuals pay SDAT 8.0% of the total payment for the transaction and non-resident corporations by SDAT 8.25% of the total payment for the transaction
In Maryland first time home buyers are exempt from paying transfer taxes therefore
the seller pays .25%
first focus title offers customers a 10% reduction on their title policy for their business. this unfair trade package is known as
rebating
the homestead credit limits the amount of assessment increase on which a homeowner will pay property taxes on property used as the owner’s principal residence to what percentage
10%
a business entity seeking an insurance license, must provide the Commissioner with the name of their
point of contact that is a licensed as a title producer
all of the following are parties to a deed of trust except
seller
all of the following are true regarding probate maryland except
a last will and testament must be available in order for an estate to be probated
all of the following is true regarding leasehold estates except
tenant occupying a leasehold estate have no legal rights
all of the following are necessary for a complete title search except
search of employment history
before a foreclosure can occur in maryland a notice of intent to foreclosure must be sent to the borrower
45 days
which of the following is true regarding fee simple ownership
all of the above
a tenant who executes a lease is the
the lessee
a trust that is created during the life of the trustor is
an inter vivos trust
adverse possession may be claimed after
20 years
an abstract of title is
a historical summary of all of the recorded instruments and proceedings that affect the title to a particular piece of property
Constructive notice of an interest in real estate is imputed by law when
a deed is recorded among the land records
foreclosure is a method of legally enforcing the terms of
deed of trust and note
an instrument used to determined the location boundaries and area of land and structures upon the ground surface
location survey
a bankruptcy cased is filed
in the us bankruptcy court
a trustee is granted this type of title through a trust
legal title
a land description in which boundaries are described by courses, directions, distances and monuments
meets and bounds
an acre is
4840 square yards
a line of credit is considered
an open end mortgage
a trust agreement that cannot be revoked is
an irrevocable trust
a chain of title is created by
reviewing deeds in a reverse chronological order
a tenancy is omitted from a deed with two owners, the tenancy is presumed to be
tenants in common
a proceeding in federal court that eliminates a debtor’s obligation to pay is
a bankruptcy action
all of the following are elements of a legal contract except
an exchange of equal considersation
a deed which warrants the title only to the acts of grantor
special warranty deed
which of the following is true
the effective date of a deed is the delivery date and the delivery date is presumed to be date of the last acknowledgement or the date stated in the deed whichever is later
characteristics of tenants in common include
co-tenancy/unequal shares, no right of to survivorship, interest passes to heirs
a life estate tenant may freely transfer the life estate property
if the tenant has full powers
a jurisdiction may place limits on the use of a residential property by way of
zoning restriction
creditors have how many months from the date the decedent’s death to file claims against the estate if notification has not been given by the personal representative
6 months
a life estate may be conveyed by
a deed
title to real estate may be transferred pursuant to a last will and testament by
a personal representative or executor
a loan in which the lender agrees to lend a maximum amount within a certain term and the collateral serve as the equity in a home
a second mortgage and HELOC or home equity line of credit
a mile is
5280 feet
a full title search is generally for what period
60 years
which of the following statements best describe legal title
there are more rights associated with legal title than equitable title
the release or discharge of a mortgage that has been assigned can be executed by
the assignee of the mortgagee
which clause in a deed of trust enables a trustee to initiate a foreclosure
the power of sale clause
when a trust terminates legal and equitable title passes to
the beneficiary
all of the following statements are true regarding life estates except
probate is required
a set of books found in the public records containing recorded maps, plats, and surveys
plat book
a structure of two or more units, in which the interior space of which are individually owned, the balance of the property both land and building is owned in common by the owners of the individuals units
condominium
A personal representative is appointed using which of the following
letter of
foreclosure actions are filed
in the circuit court
a document issued by a title insurance company in connection with an about to be issued title insurance policy that protects a mortgagee who is forwarding funds to a title insurance company’s agent or attorney against an embezzlement of funds or failure to follow specific closing instructions
closing protection letter
a system of individual ownership of units combined with joint ownership of common areas of the structure and the land is known as
condominium ownership
another name for condominium declaration is
master deed
a title search should always contain this type of date
through date of when the records were last search
a tenancy by the entirety may be severed by which of the following acts
an absolute divorce of a couple
