Title Insurance 101 & Title Insurance forms Flashcards Preview

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Flashcards in Title Insurance 101 & Title Insurance forms Deck (20)
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1

Which of the following does NOT apply to title insurance
- single premium policy
- non-casualty product
- indemnification agreement
- property-casualty product

Title is not casualty based so - property -casualty product is not part of title insurance

2

Title insurance insures against
- future loss based on future risk
- prior loss based on prior risk
- future loss based on prior risk
- prior loss based on future risk

Title insurance protects against future loss based on prior risk

3

The continuation of insurance clause states that policy coverage shall continue in force as of date of policy in favor of the insured for as long as the insured qualifies under any of the stated conditions. Which of the following is NOT one of the stated conditions
- as long as the insured retains an estate or interest in the land
- as long as the insured holds an obligation secured by a purchase money mortgage given by a purchaser from the insured
- as long as the insured retains an instutional loan on the subject property
- as long as the insured has liability by reason of warranties in any transfer or conveyance of the title

As long as the insured retains an institutional loan on the subject property

4

Any defect, lien, or encumbrance on the title record prior to date of policy is considered to be
- inherent in the title
- outside the chain of title
- unenforceable in law or equity
- jurisdictionally unrecordable

Any defect, lien, or encumbrance on the title is considered inherent to the title

5

Which of the following does NOT apply to coinsurance
- separate-but joining policies issued by two or more insurers
- each insurer insures a percentage of risk
- on a claim, each insurer pays out based on it's percentage of shared risk
- on a claim, the lead insurer pays the claim up to the point of reinsurance

On a claim the the lead insurer pays the claim up to the point of re-insurance

6

Which of the following does NOT apply to Reinsurance
- one policy issued by lead insurer
- reinsurance from one or more insurers to lead insurer
- on a claim, each insurer pays out based on its percentage of shared risk
- on a claim, the lead insurer pays the claim up to the point of reinsurance

On a claim, each insurer pays out based on its percentage of shared risk

7

The 2006 ALTA Endorsement which applies to condominiums is
- ALTA 2.1-06
- ALTA 4.1-06
- ALTA 5.1-06
- ALTA 9.1-06

ALTA 4.1-06 Endorsement applies to condominiums

8

The ____ endorsement attaches to a loan policy where proceeds of the insured mortgage are used to fund improvements on the property, and where proceeds are paid out in draws
- florida form 9 or alta form 9
- construction loan update
- assignment of mortgage
- planned unit development

Construction loan update

9

A title commitment
- reflects the current status of title
- sets forth requirements that must be met to insure title
- Lists exceptions to title that will carry over to the final policy
- Commits to insure title based on the information set forth in the commitment

All of these are on a title commitment

10

Which of the following is NOT shown on schedule a of the title commitment
- names of proposed insureds and amounts to be insured
- name of existing title holder
- legal description of the subject property
- itemized exclusions from coverage

Itemized exclusions from coverage will not be on Schedule A of title commitment

11

Which of the following is a standard exception on a title commitment
- rights or claims of parties in possession not shown by the public records
- encroachments, overlaps, boundary line disputes, and any other matters that would be disclosed by an accurate survey and inspection of the premises
- easements or claims of easements not shown by the public records
- taxes or special assessments that are not shown as existing liens by the public records

All of these are standard exceptions on a title commitment

12

Under ALTA 2006 form policy, which of the following is NOT a covered risk
- unmarketable title
- no right of access to and from the land
- the exercise of rights of eminent domain if a notice of the exercise, describing any part of the land, is recorded in the public records
- governmental police power where no notice appears in the public records as of effective date of policy

Governmental police power where no notice appears in the public records as of effective date is not a covered risk under ALTA 2006

13

Under ALTA 2006 form policy, which is NOT included under covered risk number 2 regarding title defects
- a document executed under a falsified, expired, or otherwise invalid power of attorney
- a document created, suffered, assumed or agreed to by the insured
- a document not properly filed, recorded, or indexed in the public records including failure to perform those acts by electronic means authorized by law
- a defective judicial or administrative proceeding

A document created, suffered, assumed or agreed to by the insured is not covered under ALTA 2006

14

Under ALTA 2006 form policy, which of the following is NOT an exclusion from coverage
- rights of eminent domain
- no right of access to and from the land
- any governmental police power
- defect, liens, encumbrances, adverse claims, or other matters created, suffered, assumed, or agreed to by the insured claimant

No right of access to and from the land is not an exclusion under ALTA 2006 form policy

15

Under the ALTA 2006 Form Policy, "Amount of Insurance" is defined as the amount of insurance stated in
- covered risks
- schedule a
exclusions from coverage
- schedule b

Schedule A of ALTA 2006 defines the amount of insurance

16

Under ALTA 2006 form policy "public records" is defined as records established under state statutes at date of policy for the purpose of _____ relating to real property to purchasers for value and without knowledge.
- imparting actual notice of matters
- imparting constructive notice of matters
- insuring title as to related matters
insuring title as to covered risks

Imparting constructive notice of matters

17

Under the ALTA 2006 form policy "continuation of insurance" states that coverage of the policy continues in force as of date of policy in favor of an insured, but only so long as the insured
- retains an estate or interest in the land
- holds an obligation secured by a purchase money mortgage given by a purchase from the insured
- has liability by reason of warranties in any transfer or conveyance of the title
- has created, suffered, assumed, or agreed to a matter adverse to the title

All except has created, suffered, assumed or agreed to a matter of adverse to the title

18

Under the ALTA 2006 form policy, condition no 2 Continuation of Insurance stipulates that coverage _____ in farvor of any purchaser from the insured of either an estate or interest in the land, or an obligation secured by a purchase money mortgage given to the insured
- shall continue in force
- shall not continue in force
- is transferable
- is automatically conveyed

Coverage shall not continue in force as it is not assumable coverage

19

The name of the insured (lender) and the amount of insurance is shown on _______ of the loan policy
- Schedule A
- Schedule B-1
- Schedule B-II
- Schedule C

Schedule A is where the name of the lender and amount of insurance is shown

20

Standard Exceptions, such as taxes, assessments, restrictions, and easements are shown on ____ of the loan policy
- Schedule A
- Schedule B-1
- Schedule B-II
- Schedule C

Schedule BI is where the standard exceptions are written.