Maryland Title Producers Insurance: Questions

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.

• Covenant

B. CCR

• Compact
• Commitment Right Ans - D. Commitment

What is the definition of the legal term, Presumption.

• A document need not be notarized
• Property is assumed to be public
• Property is assumed to be private
• Something may be assumed without proof Right Ans - D. Something may

be assumed without proof In an insurance contract who makes the offer?

• The agent
• The applicant
• The insurer
• 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:

• loan to value clause 1 / 3

• lien clause
• future lien clause
• subordination clause Right Ans - D. subordination clause

Which term is used to denote a security in which risk is exchanged by two parties?

• Trade
• Shuffle
• Swap
• Switch Right Ans - C. Swap

Generally, judgement liens are effective for:

• 3 to 5 years
• An amount determined by state law
• 5 to 10 years
• 2 years Right Ans - A. 3 to 5 years

Who does an escrow agent represent?

• The courts
• The buyer only
• Both the buyer and the seller
• 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

• has a lower lien priority than the second mortgage
• has equal lien priority with the second mortgage
• has lien priority over the second mortgage
• 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:

• easement
• accretion
• avulsion
• accession Right Ans - C. Avulsion. Alluvion rights are those that occur

when soil is added to the property. 2 / 3

Interest that would be disclosed by a survey is explicitly included in the 2006

ALTA owners policy and:

• provides that a survey will always be performed by the insurer issuing the

2006 form.

• is included because courts ordered ALTA to revise its policy forms so that

this coverage is provided.

• was not explicitly included in the 1992 version of the policy.
• 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?

• Implies authority
• mediated authority
• Apparent authority
• 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:

• An estate planning trust
• A real estate investment trust
• A person as the result of a bequest in a will
• An heir of the insured Right Ans - A. An estate planning trust

In an insurance contract, what is a material fact?

• A statement made by a witness to the signing of the insurance contract
• A fact which would prompt an issuer to decline an insurance application or

not cover the risk related to the fact

• A misstated zip code in the applicant's address
• 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

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