Deck 9: Title Insurance

Question 1

Title insurance covers only losses attributable to matters in existence on the date of the policy.

Answer 1

True

Question 2

A loan policy of title insurance does insure against matters of zoning.

Answer 2

False

Question 3

The ideal effective date for an owner's title policy is the date of the recording of the deed.

Answer 3

True

Question 4

Marketability of title is a legal concept and does not mean that an owner can sell their property.

Question 5

A title examination cannot protect a purchaser against forged signatures on deeds.

Question 6

A mechanic's lien is generally a standard exception in a loan policy.

Question 7

The owner's policy of title insurance does not insure against matters of zoning.

Question 8

The amount of insurance in a title insurance policy will appear on Schedule A.

Question 9

A title examination cannot protect the purchaser against a power of attorney that has expired.

Question 10

An owner's title insurance policy is transferable to a purchaser of the property.

Question 11

A loan policy of title insurance does not insure access to and from the land.

Question 12

A loan policy of title insurance is transferable.

Question 13

Parties in possession is generally a standard exception in a loan policy.

Question 14

A title examination can protect the purchaser against documents executed under a false power of attorney.

Question 15

An owner's title insurance policy excludes from coverage defects, liens, encumbrances, and adverse claims created by the insured claimant.

Question 16

A loan policy does not exclude from coverage defects, liens, and encumbrances that have been created by the insured claimant.

Question 17

Schedule A of a title insurance policy contains a list of exceptions to coverage.

Question 18

A loan policy of title insurance does insure the right of access to and from the land.

Question 19

Any owner of the insured mortgage under a loan policy is the insured under the policy.

Question 20

Generally, the amount of title insurance for an owner's policy is the purchase price of the property.

Question 21

It is not necessary for a title examination of the property to take place to issue a title insurance commitment.

Question 22

All requirements that are necessary for title insurance to be issued are shown on Schedule A of a title insurance commitment.

Question 23

All requirements for the issuance of title insurance are contained on Schedule B, Part 2, of a title insurance commitment.

Question 24

A title insurance company has an obligation to defend at its own expense any title defects that are insured by the policy.

Question 25

An owner purchases real property for $100,000.00 and obtains a loan for $80,000.00 from a lender. An owner's title insurance policy could be purchased for the following amount:

A) $100,000.00
B) $80,000.00
C) $100,000.00 or $80,000.00
D) none of the above

Question 26

Which of the following information is found on Schedule A of an owner's policy? A) effective date of policy
B) amount of insurance
C) name of insured
D) number of policy
E) (a) and (c)
F) all of the above

Question 27

Which of the following information would not be found on Schedule A to an owner's title insurance policy?

A) effective date of policy
B) name of the insured
C) exception for parties in possession
D) description of property insured

Question 28

A pending disbursement clause would most likely be found in an owner's policy.

Question 29

A mechanic's lien is generally a standard exception in an owner's policy.

Question 30

An insured claimant has a duty to notify the title insurance company of any title defects that may result in a claim under the insurance.

Question 31

Matters discovered from a title examination of a property would probably be found on:

A) Schedule A of a title insurance policy
B) Schedule C of a title insurance policy
C) Schedule B of a title insurance policy
D) none of the above

Question 32

Exceptions for encroachments can be deleted from a title insurance policy by providing the title insurance company with the following:

A) affidavit
B) title examination
C) survey
D) pending disbursement endorsement

Question 33

An owner purchases a $100,000.00 parcel of property but only insures for $60,000.00. There is a partial loss under the policy of $30,000.00. Under the co-insurance rules, the title insurance company would be liable for the following claim:

A) $30,000.00
B) $12,000.00
C) $18,000.00
D) $24,000.00

Question 34

Which of the following is not an exclusion to an owner's title insurance policy?

A) matters of survey
B) zoning and other government regulations
C) matters created, suffered, assumed, or agreed to by the insured
D) title defects not known to the insurance company

Question 35

A title insurance commitment should not be issued without a title examination of the property to be insured.

Question 36

A standard mechanic's lien exception can be deleted by providing the title insurance company with the following:

A) survey
B) affidavit that no liens exist
C) title examination
D) pending disbursement clause

Question 37

A pending disbursement clause would most likely be found in a construction loan title insurance policy.

Question 38

Title insurance cannot be issued without a title insurance commitment.

Question 39

Which of the following is not a risk covered by title insurance?

A) forged signature on deed
B) recorded easement
C) falsification of public records
D) deed signed under an expired power of attorney

Question 40

Which of the following risks are not insured against in an owner's ALTA policy?

A) mechanic's and materialmen's liens
B) access to public road
C) title is marketable
D) title is vested in the insured

Question 41

Which of the following matters is not insured against in a loan title insurance policy?

A) mechanics's liens
B) access to public road
C) invalidity of mortgage due to usury
D) priority of the mortgage

Question 42

Premiums for title insurance are generally payable:

A) annually
B) monthly
C) once at time of issuance
D) semiannually

Question 43

A title insurance policy insures that the transfer creating title in the insured is not a fraudulent conveyance.

Question 44

A title insurance policy insures that the transfer creating title in the insured is not a preferential transfer.

Question 45

A preferential transfer is one that can never be voided.

Question 46

In a title insurance policy to insure a first priority mortgage loan, if a prior mortgage is found in the title examination, it would be located in which schedule of the title commitment?

A) Schedule B, Part 1
B) Schedule B, Part 2
C) Schedule A
D) Schedule C

Question 47

A pending disbursement clause would most likely be found in:

A) construction loan title insurance policy
B) loan title insurance policy
C) owner's title insurance policy
D) none of the above

Question 48

The effective date of an owner's title insurance policy should be:

A) the date the deed was signed
B) the date of recording of deed
C) the date of title examination
D) the date of title commitment