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Title Insurance Producer Independent Contractor Exam > Exam Questions > Flashcards

Exam Questions Flashcards

1
Q

Pursuant to Maryland anti-rebating statute, the following items cannot be given to a client as inducement for business

A

home warranty, legal services, uber rides

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2
Q

permissible promotional items used in marketing title insurance services include

A

pens, calendars and mugs,

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3
Q

the loan estimate form must be given to a consumers

A

at least three days after submitting a loan application

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4
Q

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

A

than $50 regardless of whether a policy is purchased

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5
Q

Which pre-requisite is not required to become a title producer

A

be at least twenty-one years of age

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6
Q

giving something of value in exchange to an insured to induce the purchase of an insurance policy is

A

rebating

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7
Q

the blocked person’s list of specifically designated nationals is maintained by

A

department of treasury

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8
Q

the closing disclosure form must be delivered

A

three days before settlement

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9
Q

Pursuant to RESPA, the only thing of value that can be received by an affiliate business in a title insurance transaction is

A

a fee as defined by the company bylaws

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10
Q

RESPA applies to

A

residential transactions involving 1-4 family units. It DOES NOT apply to commercial transactions

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11
Q

Insurers must maintain for inspection by the Maryland Insurance Administration

A

a producer’s register

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12
Q

A title insurer must update their producer’s register within how many days of a termination or an appointment

A

30 days

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13
Q

The commissioner of insurance has the authority to do all of the following except

A

change state insurance law at any time

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14
Q

In Maryland criminal or prohibited acts committed by insurance producers under Maryland insurance law are prosecuted by

A

The attorney general’s office

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15
Q

Which of the following statements best describe insurance rates

A

the regulatory objectives of insurance rating are that rates shall be adequate, not excessive and not unfairly discriminatory

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16
Q

The following is true regarding remote online notarizations

A

the law became effective October 1, 2020

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17
Q

page one of maryland intake sheet

A

will accommodate two documents and an addendum can be used for the remaining documents

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18
Q

Non-allowable behavior pursuant to RESPA includes

A

all of the above

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19
Q

The authority given by an insurance company to agent that is usually not specifically told or communicated is called

A

implied authority

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20
Q

Pursuant to RESPA when there is an affiliated business arrangement fees appearing on a closing disclosure should only be charged based on

A

services rendered

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21
Q

pursuant to Maryland’s wet settlement act in purchase transaction funds must be disbursed

A

the day of settlement

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22
Q

a simultaneous issue rate is given when

A

a buyer purchases an owner’s and lender’s policy

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23
Q

which of the following statements is correct about the insurance commissioner

A

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)

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24
Q

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

A

10 years in prison and a $50,000 fine

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25
Q

when a title company established an escrow account the account must be labeled as

A

a trust account

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26
Q

unless specified in the deed of trust, the most that can be charged for a release in Maryland is

A

$15

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27
Q

Non-MD residents who sell property in MD are charged a percentage based on what

A

total payment

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28
Q

which of the following statements is with regards to rebating

A

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)

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29
Q

Unclaimed checks must be handled pursuant to

A

Maryland’s escheatment law

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30
Q

Maryland is a RATE file and use state. This means

A

the insurer can file a rate and use if the Commissioner doesn’t object within 30 days

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31
Q

A fiduciary or agency relationship exist between

A

underwriters and title insurance producers, title insurance producers and independent contractors, and title insurance producers and lenders

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32
Q

Which of the following is required before a Title Insurance Agency/ Title Insurer ca be issued a certificate of authority

A

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

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33
Q

This relationship between a title insurance producer and a TIPIC can be best described as

A

principal and agent

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34
Q

Express authority can be described as

A

written or oral

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35
Q

The Maryland Affordable Housing Trust

A

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)

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36
Q

A title insurance producer’s license must be renewed

A

every other year

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37
Q

instead of your typical escrow account, an attorney can establish

A

and IOLTA account

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38
Q

In Maryland, title insurance rates

A

all of the above (are competitive, must be filled with insurance commissioner, must be approved by the insurance commissioner)

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39
Q

A title agent can do business with a title producer as long as

A

the title producer is licensed

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40
Q

The most common discount for a title policy reissue rate is

A

40%

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41
Q

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

A

$5000

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42
Q

A person who bears special relationship of trust and responsibility in an agency relationship

A

all of the above (fiduciary, agent, trustee)

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43
Q

how often must a producer sent out privacy notice to customers

A

annually

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44
Q

producers are required to notify the insurance department within

A

30 days of any change of address

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45
Q

a foreign insurer is

A

an insurance company that is incorporated and domiciled outside the state of maryland but in another state in the US

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46
Q

the purpose of the statutory notice regarding title insurance is to protect

A

owners who are consumers of title insurance products

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47
Q

another name for an impound account is

A

an escrow account

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48
Q

the consumer is informed of the right to purchase an owner’s title insurance policy and its cost on what type of document

A

statutory notice to buyer

49
Q

A title agent is required to received the following number of continuing education hours prior to renewal

A

16 hours

50
Q

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

A

twisting

51
Q

a producer’s register should be updated

A

every 30 days

52
Q

a title producer must comply with the commissioner’s request

A

to examine records, to provide documents, and to respond to complaints

53
Q

businesses that are controlled by a common corporation and offer settlement services are called

A

all of the above (ABA, an affiliated business, an affiliated business arangement)

54
Q

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

A

Defamation

55
Q

Rates for title insurance are regulated by

A

state insurance agencies

56
Q

the statutory notice of availability of title insurance must be maintained by the title company for

A

3 years

57
Q

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:

A

tell the consumer, given the name, address and phone number of the agency that provided the information (both a and b)

58
Q

if a deed is not dated on page 1 the date of the deed will be

A

the last acknowledgement date

59
Q

underwriters are required to conduct audits of their title agents/companies or examine the books of their title agents/companies

A

at least once every year

60
Q

a title insurer has a right to examiner the records of a title producer

A

at any reasonable time

61
Q

if a lender fails to disburse funds at time of settlement

A

the lender may not charge interest to the borrower for the first 30 days after closing

62
Q

types of illegal rebating and acts prohibited by RESPA include

A

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)

63
Q

A title insurance producer can be

A

all of the above ( license individual who provides closing and settlement services, title insurance insurer, a person who solicits title)

64
Q

Who may exercise control over escrow funds maintained in a title agency escrow account

A

licensed title producer

65
Q

exceptions to the anti-rebating statute allows for which of the following marketing activities

A

all of the above are exceptions to anti-rebating statute regardless of whether a policy is purchased

66
Q

which of the following is true regarding real estate transaction in MD by non-resident sellers

A

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

67
Q

In Maryland first time home buyers are exempt from paying transfer taxes therefore

A

the seller pays .25%

68
Q

first focus title offers customers a 10% reduction on their title policy for their business. this unfair trade package is known as

A

rebating

69
Q

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

A

10%

70
Q

a business entity seeking an insurance license, must provide the Commissioner with the name of their

A

point of contact that is a licensed as a title producer

71
Q

all of the following are parties to a deed of trust except

A

seller

72
Q

all of the following are true regarding probate maryland except

A

a last will and testament must be available in order for an estate to be probated

73
Q

all of the following is true regarding leasehold estates except

A

tenant occupying a leasehold estate have no legal rights

74
Q

all of the following are necessary for a complete title search except

A

search of employment history

75
Q

before a foreclosure can occur in maryland a notice of intent to foreclosure must be sent to the borrower

A

45 days

76
Q

which of the following is true regarding fee simple ownership

A

all of the above

77
Q

a tenant who executes a lease is the

A

the lessee

78
Q

a trust that is created during the life of the trustor is

A

an inter vivos trust

79
Q

adverse possession may be claimed after

A

20 years

80
Q

an abstract of title is

A

a historical summary of all of the recorded instruments and proceedings that affect the title to a particular piece of property

81
Q

Constructive notice of an interest in real estate is imputed by law when

A

a deed is recorded among the land records

82
Q

foreclosure is a method of legally enforcing the terms of

A

deed of trust and note

83
Q

an instrument used to determined the location boundaries and area of land and structures upon the ground surface

A

location survey

84
Q

a bankruptcy cased is filed

A

in the us bankruptcy court

85
Q

a trustee is granted this type of title through a trust

A

legal title

86
Q

a land description in which boundaries are described by courses, directions, distances and monuments

A

meets and bounds

87
Q

an acre is

A

4840 square yards

88
Q

a line of credit is considered

A

an open end mortgage

89
Q

a trust agreement that cannot be revoked is

A

an irrevocable trust

90
Q

a chain of title is created by

A

reviewing deeds in a reverse chronological order

91
Q

a tenancy is omitted from a deed with two owners, the tenancy is presumed to be

A

tenants in common

92
Q

a proceeding in federal court that eliminates a debtor’s obligation to pay is

A

a bankruptcy action

93
Q

all of the following are elements of a legal contract except

A

an exchange of equal considersation

94
Q

a deed which warrants the title only to the acts of grantor

A

special warranty deed

95
Q

which of the following is true

A

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

96
Q

characteristics of tenants in common include

A

co-tenancy/unequal shares, no right of to survivorship, interest passes to heirs

97
Q

a life estate tenant may freely transfer the life estate property

A

if the tenant has full powers

98
Q

a jurisdiction may place limits on the use of a residential property by way of

A

zoning restriction

99
Q

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

A

6 months

100
Q

a life estate may be conveyed by

A

a deed

101
Q

title to real estate may be transferred pursuant to a last will and testament by

A

a personal representative or executor

102
Q

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

a second mortgage and HELOC or home equity line of credit

103
Q

a mile is

A

5280 feet

104
Q

a full title search is generally for what period

A

60 years

105
Q

which of the following statements best describe legal title

A

there are more rights associated with legal title than equitable title

106
Q

the release or discharge of a mortgage that has been assigned can be executed by

A

the assignee of the mortgagee

107
Q

which clause in a deed of trust enables a trustee to initiate a foreclosure

A

the power of sale clause

108
Q

when a trust terminates legal and equitable title passes to

A

the beneficiary

109
Q

all of the following statements are true regarding life estates except

A

probate is required

110
Q

a set of books found in the public records containing recorded maps, plats, and surveys

A

plat book

111
Q

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

A

condominium

112
Q

A personal representative is appointed using which of the following

A

letter of

113
Q

foreclosure actions are filed

A

in the circuit court

114
Q

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

A

closing protection letter

115
Q

a system of individual ownership of units combined with joint ownership of common areas of the structure and the land is known as

A

condominium ownership

116
Q

another name for condominium declaration is

A

master deed

117
Q

a title search should always contain this type of date

A

through date of when the records were last search

118
Q

a tenancy by the entirety may be severed by which of the following acts

A

an absolute divorce of a couple

Title Insurance Producer Independent Contractor Exam (11 decks)

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