Pennsylvania Title Insurance Practice Test

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• Which of the following describes the financial consequence the insurer bears when a claim is filed?
• What describes the intention of returning the insured to their financial position prior to loss?
• What protects a lender and buyer against misapplication of funds during closing?
• What does moral hazard refer to in insurance?
• Which term refers to maintaining full responsibility for losses while continuing an activity?
• What is the risk management technique that allows the transfer of loss to another party through a contract?
• What type of legal claim allows individuals to acquire property they have possessed for a certain period without the owner's permission?
• Which term refers to the process of a government taking private property for public use?
• Which of the following is considered an element of insurable risk?
• Who is the individual that authorizes the agent to act on their behalf?
• Which easement is established when a landowner allows another party to access their land for specific use?
• What term is used to describe systematic methods used outside the original thirteen colonies?
• What type of estate only exists during the lifetime of a real and existing person?
• What type of policy is used to insure the owner of an interest in real property?
• Which practice involves persuading insureds to change their policies for the agent's benefit?
• What is the term for the procedures or systems used to minimize the probability of loss?
• When do Pennsylvania corporate taxes become a lien on property?
• How are judgments commonly resolved in legal systems?
• What is it called when only those expecting a loss purchase insurance?
• Which policy provides coverage for lenders to protect their interests in financed properties?
• Which estate continues for a definite period of time, typically outlined in a lease?
• Which type of estate can be terminated upon the happening of a designated event?
• What is 'risk retention' in insurance practice?
• Which term describes an estate that lasts only during the lifetime of a specified person?
• What action is described by boycotting or coercing in the insurance industry?
• Which policy insures the validity, unenforceability, and priority of a lender's mortgage?
• What is the term for the legal right of a contractor to file a lien against the property where work was performed?
• What is required for transfers in for-profit corporations?
• Which of the following describes the addition of new land to a property due to natural causes?
• What is considered an unfair discrimination in insurance practices?
• What action can a lender take if a borrower defaults on a loan secured by a mortgage?
• What term describes the specific authority given to an agent by an insurance company stated in the agency agreement?
• What is the objective of regulations against unfair discrimination in insurance?
• What do exceptions in a title insurance commitment refer to?
• What is the term used to describe the cause of a loss?
• What type of ownership allows a person to damage the land they own?
• Who is the person or entity that holds escrowed funds during a real estate transaction?
• What is an easement that arises from a specific grant or agreement of the parties called?
• Which term describes a lease arrangement that allows a tenant to have possession with the landlord's permission?
• What is the relationship between retention and risk management?
• What is the purpose of earnest money in a real estate transaction?
• Which of the following easements occurs when land is landlocked and cannot access a public way?
• What denotes the expectation of full performance and honesty between the insurer and insured?
• Which term describes the legal proceedings for distributing a bankrupt person's assets?
• The arrangement where one joint tenant's share of the property passes to surviving joint tenants is known as what?
• When can an Affidavit be used?
• What is the function of a Closing Protection Letter (CPL)?
• What is a promissory note in the context of a mortgage?
• What term best describes an ownership arrangement where two or more people hold a single title with equal rights?
• What type of contract is characterized as conditional and requires fulfillment of certain obligations from both parties?
• What type of estate is characterized by agreed-upon time periods for rent but without a definite expiration date?
• What is the right called where one party uses the land owned by another for a specific purpose?
• In contract terms, what is necessary for consideration to be valid?
• Which term describes the situation where a third party believes that an agent has authority, regardless of whether that authority was actually granted?
• What type of reinsurance covers losses exceeding a specified amount?
• What is the highest quality estate in real property ownership?
• In contract law, which of the following refers to terms that must be clear and specific for the agreement to be binding?
• What type of contracts are not valid if they are entered for illegal or immoral acts?
• What is a North arrow or north point used for in property plotting?
• What is essential for forming a Limited Liability Company in Pennsylvania?
• Which policy typically offers coverage for property owners against legal disputes and claims on their property?
• What is the term for when an insurance company expects full disclosure of information from the insured?
• What term refers to the state of being subject to loss due to various hazards?
• What principle states that a large enough pool of similar risks allows for better loss measures?
• How can a corporation be authorized to manage its transfers?
• Dying without a valid will is referred to as what?
• Sales conducted under the authority of a judgment or court order are known as what?
• What must be depicted on a subdivision plan to formally establish an easement?
• What does insurable interest refer to in the context of insurance?
• What is the purpose of a mechanic's lien?
• What is the minimum board member requirement to authorize a transfer in a corporation with fewer than 21 members?
• What do agents risk by promoting non-compliant insurance practices?
• What is a characteristic of a statutory lien?
• A form of concurrent ownership where co-owners can independently sell their shares is referred to as what?
• In Pennsylvania, what method is used to acquire title to real property by possession for a statutory period?
• What is a mortgage in terms of real estate?
• Which term best exemplifies a condition or situation that contributes to an increased risk of loss?
• What is the primary focus of the unfair insurance trade practices regulations?
• What type of claim can lessen the value of a property, such as a mortgage or lien?
• Which type of reinsurance provides for the sharing of risks between the primary insurer and reinsurer?
• Which warranty allows the buyer protection from defects during both the grantor's ownership and that of all previous owners?
• What type of authority allows an agent to take actions beyond the explicit rights outlined in the agency contract but still consistent with that authority?
• What is the purpose of the prohibition against unfair trade practices in insurance?
• What is the legal consequence of publishing ads for unlicensed insurance companies?
• What are equitable interests?
• How is the priority of a federal tax lien determined?
• What is formed by filing a Certificate of Limited Partnership?
• What must be true about an event in order to be considered an insurable risk?
• What type of contract is a title insurance policy conditioned upon the insured paying premiums?
• How is the authority of trustees in a business trust determined?
• Which method describes land boundaries by courses, directions, and distances?
• What legal concept allows for a right to use land that is only valid during a person’s lifetime?
• What is the term for when a person remains in possession of property after their right to do so has expired?
• What does a Settlement Statement provide at the closing of an escrow?
• Which term refers to the responsibility of the insured to provide accurate information in the insurance application?
• What does a marketable title guarantee to its owner?
• What is the term for property owned by two or more persons, each with an undivided interest in the property?
• Which type of authority can be seen when an agent acts in a way that represents their belief they have the right to act?
• What type of easement must be open, continuous, and hostile for twenty-one years to be enforceable?
• What is required for a party to have the capacity to enter into a binding agreement?
• Engaging in unfair competition or deceptive practices in insurance can be classified as which of the following?
• In an easement appurtenant, who benefits from the rights granted?
• What term describes the rights shown on surveys for use, maintenance, or occupancy?
• What is referred to as a title industry form that acts as a preliminary report of title?
• What are activities designed to minimize risks referred to as?
• What type of authority is typically derived from the actions that an agent takes consistent with their expressed authority?
• Which type of policy covers defects, liens, encumbrances, and claims against a property?
• What term describes the combination of land, crops, buildings, and other improvements attached to the land?
• In what kind of partnership are all partners general partners?
• What is meant by acknowledgments in real estate transactions?
• What is the term for when one party indicates to another a willingness to enter into an agreement under specific terms?
• Which of the following best defines 'peril' in insurance terminology?
• Which term describes uncertainty arising from the possible occurrence of events?
• Which type of ownership involves two or more owners holding an undivided fractional interest in the same property?
• Which term refers to the relinquishment of a right or interest in land?
• What document is used to formally transfer ownership of a right from one entity to another?
• Which deed expressly warrants that the title is clear and there are no undisclosed claims or encumbrances?
• Which of the following indicates a transition of full title ownership from one party to another?
• What describes a situation where the insurer purchases coverage from another insurer?
• What is it called when a single specific risk is ceded to a reinsurer outside of standard treaty agreements?
• What term is used for an easement that is not typically insurable and is independent of possession of another tract?
• What is a federal tax lien associated with?
• In a special warranty deed, the grantor's obligations relate to what aspect of the property title?
• What is the act of giving up a legal right, especially in relation to an insurance policy?
• Which illegal action involves deceit for financial gain within insurance?
• What do minerals refer to in real estate context?
• What term refers to ownership that includes the right to use, occupy, and dispose of land?
• What act requires disclosure when using credit reports for insurance eligibility?
• What distinguishes a standard insurance policy that is offered on a take-it-or-leave-it basis?
• Who qualifies as a grantor in a real estate transaction?
• Which rights allow a property owner to sever ownership of the area above the land?
• Which of the following is a prohibited form of compensation in title insurance?
• What legal principle bars an insurance company from using certain defenses if it previously condoned the insured's actions?
• What is necessary for a title insurance policy to be valid?
• What term is used to indicate the legal standing of an individual who dies leaving a will?
• Which of the following is NOT a type of estate mentioned in real property law?
• In insurance terms, what does 'primary risk' refer to?
• Which of the following best defines an encumbrance?
• What type of liens are created with the consent of the debtor?
• What is the term for the legal transfer of property and all its rights?
• What is the purpose of covenants in real estate?
• What is a written statement made under oath before a judicial officer called?
• What do defects in a title imply for property ownership?
• Which of the following best describes the concept of "competent parties" in contract law?
• In property law, what is defined as the legal transfer of rights in land that occurs without the owner's desire?
• Which term increases the likelihood of a loss?
• What is created when an owner conveys title to minerals underlying their land?
• What is the legal term for a pending lawsuit or a court's power over property during legal action?
• Which term refers to a contract that may be based on uneven terms, often not providing a fair balance between benefits and premiums paid?
• What are the truths provided by the insured in the insurance application process called?
• What is the term for "metes and bounds" descriptions?
• Which document accompanies a mortgage and represents the borrower's promise to repay the loan?
• What process involves using a protractor, drafting compass, and scaled ruler to depict property boundaries?
• What is the term for giving a lien an inferior status in order to prioritize a new lien?
• Which term denotes the legal process of transferring property without the consent of the original owner?
• Which term describes a contract where only one party makes enforceable promises?
• In insurance terms, what does 'Loss' refer to?
• What do restrictions in real estate documents typically entail?
• What does condemnation refer to in property law?
• Which process involves proving a deceased person's will is valid and administering their estate?
• What is an involuntary lien?
• What is the relationship called when the insurance company gives authority to an agent?
• What type of insurance arrangement occurs when policyholders profit from excess risk-sharing?
• Who does a broker primarily owe their duty to in an insurance transaction?
• What is the method called that aims to eliminate the chance of liability by avoiding certain activities?
• What term describes a conveyance against the wishes of the transferor?
• What type of index do Recorder of Deeds offices use to maintain public records?
• What document must be filed to form a domestic corporation in Pennsylvania?
• What is the outcome of initiating a Lis Pendens on a property?
• What is a distinguishing feature of a Fee Simple estate?
• What do exclusion provisions in a title insurance policy signify?
• What do the recording acts require regarding real property records?
• What type of estate arises when the rightful possessor conveys the right to use property in exchange for rent?
• In title insurance, what must the insured continue to do for the policy to remain effective?
• Which term refers to anything of value exchanged in an agreement, such as money or services?
• What happens to the ownership of property when an owner dies without a will or heirs?
• Which party must legally be able to hold title to real estate?
• Which of the following describes conditions in a title insurance policy?
• What is a lien?
• A legal arrangement created in a will or by a living person is known as what?
• What does the Law of Agency state about agents in contracts?
• What is the purpose of endorsements in a title insurance policy?
• What are real estate taxes classified as in terms of liens?
• What term describes the act of making false statements to harm another insurer?
• In Pennsylvania law, what is an example of a separate estate for air rights?
• What type of deed provides warranties that the title is clear and that the grantor has the legal ability to transfer the property?
• What right allows a property owner to claim all that is added to their land?
• What does a judgment refer to in legal terms?
• What term is used for dying with a valid will?
• Which unethical practice involves enticing clients to change their insurance policies?
• In title insurance, who is the contract primarily concerning?
• What rights are primarily associated with the use of surface land and its improvements?
• What is the key characteristic of a quit claim deed?
• What are adverse claims in relation to title insurance?
• What describes the nature of a charge that may injure the land if removed?
• Which type of company has attributes of both a corporation and a partnership?
• What best describes a general partnership?
• What defines water rights?
• What is defined as an inducement for placing title insurance business?
• In title insurance, what does sharing refer to?
• Which of the following best describes a first lien?
• What type of easement is a personal right to use another's land, not tied to possession of another property?
• Which deed is used to convey all interest in a property without warranties as to the condition of the title?
• Which ownership arrangement exists only between married persons?
• What type of title insurance policy is most commonly associated with long-term leases expecting significant improvements?
• What is referred to as a fictitious name?