Exam Questions

Question 1

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

Answer 1

home warranty, legal services, uber rides

Question 2

permissible promotional items used in marketing title insurance services include

Answer 2

pens, calendars and mugs,

Question 3

the loan estimate form must be given to a consumers

Answer 3

at least three days after submitting a loan application

Question 4

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

Answer 4

than $50 regardless of whether a policy is purchased

Question 5

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

Answer 5

be at least twenty-one years of age

Question 6

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

Answer 6

rebating

Question 7

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

Answer 7

department of treasury

Question 8

the closing disclosure form must be delivered

Answer 8

three days before settlement

Question 9

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

Answer 9

a fee as defined by the company bylaws

Question 10

RESPA applies to

Answer 10

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

Question 11

Insurers must maintain for inspection by the Maryland Insurance Administration

Answer 11

a producer’s register

Question 12

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

Answer 12

30 days

Question 13

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

Answer 13

change state insurance law at any time

Question 14

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

Answer 14

The attorney general’s office

Question 15

Which of the following statements best describe insurance rates

Answer 15

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

Question 16

The following is true regarding remote online notarizations

Answer 16

the law became effective October 1, 2020

Question 17

page one of maryland intake sheet

Answer 17

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

Question 18

Non-allowable behavior pursuant to RESPA includes

Answer 18

all of the above

Question 19

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

Answer 19

implied authority

Question 20

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

Answer 20

services rendered

Question 21

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

Answer 21

the day of settlement

Question 22

a simultaneous issue rate is given when

Answer 22

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

Question 23

which of the following statements is correct about the insurance commissioner

Answer 23

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)

Question 24

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

Answer 24

10 years in prison and a $50,000 fine

Question 25

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

Answer 25

a trust account

Question 26

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

Answer 26

$15

Question 27

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

Answer 27

total payment

Question 28

which of the following statements is with regards to rebating

Answer 28

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)

Question 29

Unclaimed checks must be handled pursuant to

Answer 29

Maryland's escheatment law

Question 30

Maryland is a RATE file and use state. This means

Answer 30

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

Question 31

A fiduciary or agency relationship exist between

Answer 31

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

Question 32

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

Answer 32

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

Question 33

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

Answer 33

principal and agent

Question 34

Express authority can be described as

Answer 34

written or oral

Question 35

The Maryland Affordable Housing Trust

Answer 35

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)

Question 36

A title insurance producer's license must be renewed

Answer 36

every other year

Question 37

instead of your typical escrow account, an attorney can establish

Answer 37

and IOLTA account

Question 38

In Maryland, title insurance rates

Answer 38

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

Question 39

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

Answer 39

the title producer is licensed

Question 40

The most common discount for a title policy reissue rate is

Answer 40

40%

Question 41

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

Answer 41

$5000

Question 42

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

Answer 42

all of the above (fiduciary, agent, trustee)

Question 43

how often must a producer sent out privacy notice to customers

Answer 43

annually

Question 44

producers are required to notify the insurance department within

Answer 44

30 days of any change of address

Question 45

a foreign insurer is

Answer 45

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

Question 46

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

Answer 46

owners who are consumers of title insurance products

Question 47

another name for an impound account is

Answer 47

an escrow account

Question 48

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

Answer 48

statutory notice to buyer

Question 49

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

Answer 49

16 hours

Question 50

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

Answer 50

twisting

Question 51

a producer's register should be updated

Answer 51

every 30 days

Question 52

a title producer must comply with the commissioner's request

Answer 52

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

Question 53

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

Answer 53

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

Question 54

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

Answer 54

Defamation

Question 55

Rates for title insurance are regulated by

Answer 55

state insurance agencies

Question 56

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

Answer 56

3 years

Question 57

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:

Answer 57

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

Question 58

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

Answer 58

the last acknowledgement date

Question 59

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

Answer 59

at least once every year

Question 60

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

Answer 60

at any reasonable time

Question 61

if a lender fails to disburse funds at time of settlement

Answer 61

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

Question 62

types of illegal rebating and acts prohibited by RESPA include

Answer 62

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)

Question 63

A title insurance producer can be

Answer 63

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

Question 64

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

Answer 64

licensed title producer

Question 65

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

Answer 65

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

Question 66

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

Answer 66

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

Question 67

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

Answer 67

the seller pays .25%

Question 68

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

Answer 68

rebating

Question 69

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

Answer 69

10%

Question 70

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

Answer 70

point of contact that is a licensed as a title producer

Question 71

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

Answer 71

seller

Question 72

all of the following are true regarding probate maryland except

Answer 72

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

Question 73

all of the following is true regarding leasehold estates except

Answer 73

tenant occupying a leasehold estate have no legal rights

Question 74

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

Answer 74

search of employment history

Question 75

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

Answer 75

45 days

Question 76

which of the following is true regarding fee simple ownership

Answer 76

all of the above

Question 77

a tenant who executes a lease is the

Answer 77

the lessee

Question 78

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

Answer 78

an inter vivos trust

Question 79

adverse possession may be claimed after

Answer 79

20 years

Question 80

an abstract of title is

Answer 80

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

Question 81

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

Answer 81

a deed is recorded among the land records

Question 82

foreclosure is a method of legally enforcing the terms of

Answer 82

deed of trust and note

Question 83

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

Answer 83

location survey

Question 84

a bankruptcy cased is filed

Answer 84

in the us bankruptcy court

Question 85

a trustee is granted this type of title through a trust

Answer 85

legal title

Question 86

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

Answer 86

meets and bounds

Question 87

an acre is

Answer 87

4840 square yards

Question 88

a line of credit is considered

Answer 88

an open end mortgage

Question 89

a trust agreement that cannot be revoked is

Answer 89

an irrevocable trust

Question 90

a chain of title is created by

Answer 90

reviewing deeds in a reverse chronological order

Question 91

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

Answer 91

tenants in common

Question 92

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

Answer 92

a bankruptcy action

Question 93

all of the following are elements of a legal contract except

Answer 93

an exchange of equal considersation

Question 94

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

Answer 94

special warranty deed

Question 95

which of the following is true

Answer 95

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

Question 96

characteristics of tenants in common include

Answer 96

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

Question 97

a life estate tenant may freely transfer the life estate property

Answer 97

if the tenant has full powers

Question 98

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

Answer 98

zoning restriction

Question 99

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

Answer 99

6 months

Question 100

a life estate may be conveyed by

Answer 100

a deed

Question 101

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

Answer 101

a personal representative or executor

Question 102

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

Answer 102

a second mortgage and HELOC or home equity line of credit

Question 103

a mile is

Answer 103

5280 feet

Question 104

a full title search is generally for what period

Answer 104

60 years

Question 105

which of the following statements best describe legal title

Answer 105

there are more rights associated with legal title than equitable title

Question 106

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

Answer 106

the assignee of the mortgagee

Question 107

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

Answer 107

the power of sale clause

Question 108

when a trust terminates legal and equitable title passes to

Answer 108

the beneficiary

Question 109

all of the following statements are true regarding life estates except

Answer 109

probate is required

Question 110

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

Answer 110

plat book

Question 111

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

Answer 111

condominium

Question 112

A personal representative is appointed using which of the following

Answer 112

letter of

Question 113

foreclosure actions are filed

Answer 113

in the circuit court

Question 114

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

Answer 114

closing protection letter

Question 115

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

Answer 115

condominium ownership

Question 116

another name for condominium declaration is

Answer 116

master deed

Question 117

a title search should always contain this type of date

Answer 117

through date of when the records were last search

Question 118

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

Answer 118

an absolute divorce of a couple