What Do You Know About Maryland Insurance Administration? Trivia Questions Quiz
What Do You Know About Maryland Insurance Administration? This trivia Questions Quiz is designed to help you see if you are as skilled as you think when it comes to insurance covers and your ability to follow procedures as well as help customers on their issues. It will also help you learn some facts about the area, do give it a shot
- 1.
Which state statute does Maryland follow?
- A.
Race state
- B.
Notice state
- C.
Subordinate state
- D.
Race-notice state
Correct Answer
D. Race-notice state -
- 2.
This clause defines/limits the ownership estate being granted to the grantee. This clause begins with "to have and to hold." Example: "To have and to hold for the life of the grantee" creates a life estate.
- A.
Deed restriction clause
- B.
Subordination clause
- C.
Habendum clause
- D.
Subrogation clause
Correct Answer
C. Habendum clause -
- 3.
Who pays transfer taxes in a First Time Maryland Homebuyer (FTMHB) transaction?
- A.
The buyer
- B.
The seller
- C.
The lender
- D.
Taxes are split between buyer and seller
Correct Answer
B. The seller -
- 4.
With a leasehold estate, the landlord keeps what type of right to "retake possession"?
- A.
Estate
- B.
Owner
- C.
Reversionary
- D.
Statute
Correct Answer
C. Reversionary -
- 5.
Which method below is not considered a legal description in describing real estate?
- A.
Metes-and-Bounds
- B.
Rectangular Survey System
- C.
U.S. Postal Mailing Address
- D.
Plat-of-Survey Method
Correct Answer
C. U.S. Postal Mailing Address -
- 6.
Deeds are recorded in Land Records using one of the index systems listed:
- A.
Grantor-grantee index system
- B.
Tract index system
- C.
Tract-grantor index system
- D.
Tract-grantee index system
Correct Answer
A. Grantor-grantee index system -
- 7.
A title insurance producer independent contractor (TPIC) performs the following steps at a closing EXCEPT
- A.
Check identification
- B.
Obtain signatures
- C.
Sign on the witness line
- D.
Affix a notary seal where needed
Correct Answer
C. Sign on the witness line -
- 8.
What part of the closing process does the information regarding existing liens on the property is obtained and a letter is sent to the current lender requesting pay-off amount?
- A.
Pre-closing
- B.
Closing
- C.
Post-closing
- D.
None of the above
Correct Answer
A. Pre-closing -
- 9.
The role of the Maryland Insurance Administration does not include:
- A.
Protecting Maryland consumers
- B.
Investigating consumer complaints
- C.
Reviewing and approving premium rates
- D.
Reviewing Notary commissions
Correct Answer
D. Reviewing Notary commissions -
- 10.
A form that the circuit clerk office uses to expedite the accurate processing, recording, and indexing of land instruments
- A.
Liber and folio
- B.
Commitment
- C.
Deed of trust/mortgage
- D.
Intake sheet
Correct Answer
D. Intake sheet -
- 11.
The Closing Protection Letter/Insured Closing Letter/CPL benefits
- A.
The beneficiary & the trustor
- B.
The seller & the homeowner
- C.
The lender & the homeowner
- D.
The trustee & the homeowner
Correct Answer
C. The lender & the homeowner -
- 12.
Upon recording which type of deed merges the ground rent and reversionary fee holder's interest into one fee simple estate?
- A.
Deed of foreclosures
- B.
Trustee's deed
- C.
Administrator's deed
- D.
Deed of Redemption
Correct Answer
D. Deed of Redemption -
- 13.
Ground rent is filed with the
- A.
Department of State
- B.
County recorder office
- C.
County court house
- D.
Dept. of Assessment and Taxation
Correct Answer
D. Dept. of Assessment and Taxation -
- 14.
Common money judgments are released by filing an
- A.
Order of Satisfaction or a Line of Satisfaction
- B.
Order of Dissatisfaction or Line of Satisfaction
- C.
Order of Decline in Satisfaction or Dissatisfaction
- D.
Order Satisfaction or a Decline in Satisfaction
Correct Answer
A. Order of Satisfaction or a Line of Satisfaction -
- 15.
An Order of Satisfaction or a Line of Satisfaction is an acknowledgment that a judgment was paid and the "RELEASE" is filed with
- A.
Land records
- B.
Department of Assessment and Taxation
- C.
Federal government
- D.
Courthouse
Correct Answer
D. Courthouse -
- 16.
Jane has a first and second mortgage on her home. She refinances, which pays off the 1st mortgage. What was her 2nd mortgage becomes her 1st mortgage? However, the new mortgage (which pays off her 1st mortgage) wants to remain in 1st mortgage position. Who signs the subordination agreement?
- A.
1st mortgage lender
- B.
Subordinate mortgage lender
- C.
The borrower
- D.
None of the above
Correct Answer
B. Subordinate mortgage lender -
- 17.
Which of the following are TIPs allowed to give realtors?
- A.
Referral commissions
- B.
Tickets to a broadway musical
- C.
Cash from each closing
- D.
Pens and stationary with TIPs contact information
Correct Answer
D. Pens and stationary with TIPs contact information -
- 18.
An acre of land contains
- A.
15,000 square feet
- B.
33,000 square feet
- C.
43,560 square feet
- D.
50,000 square feet
Correct Answer
C. 43,560 square feet -
- 19.
Maryland withholding tax rate for non-resident individuals is % of the total payment
- A.
5.5%
- B.
3.5%
- C.
8.5%
- D.
7.5%
Correct Answer
D. 7.5% -
- 20.
A person who owns a residential property and makes ground rent payments owns a
- A.
Fee simple interest
- B.
Leasehold interest
- C.
Tenants in entirety interest
- D.
Fee simple defeasible interest
Correct Answer
B. Leasehold interest -
- 21.
The Real Estate Settlement Procedures Act (RESPA) is a consumer protection law designed to provide consumers with
- A.
Costs associated with their loan
- B.
Prohibited kickbacks
- C.
Prohibited referral fees
- D.
All of the above
Correct Answer
D. All of the above -
- 22.
An ALTA 4, a common residential title endorsement, that may appear on a Loan/Lender's policy refers to
- A.
Single Family Units
- B.
Multi-Family Units
- C.
Condominium Units
- D.
Planned Development Unit
Correct Answer
C. Condominium Units -
- 23.
An ALTA 5, a common residential title endorsement, that may appear on a Loan/Lender's policy refers to
- A.
Single Family Units
- B.
Multi-Family Units
- C.
Condominium Units
- D.
Planned Development Unit
Correct Answer
D. Planned Development Unit -
- 24.
This system is used in urban areas when land is subdivided into numbered lots, blocks, and tracts, and a recorded survey called a plat map is referenced.
- A.
Plat-of-survey method
- B.
Recorded plat method
- C.
Lot-block-tract method
- D.
All of the above
Correct Answer
A. Plat-of-survey method -
- 25.
Statute of limitations for a federal tax lien
- A.
10 years
- B.
12 years
- C.
20 years
- D.
66 years
Correct Answer
A. 10 years -
- 26.
A judgment is a decree issued by the court at the conclusion of a lawsuit. A judgment lien is considered
- A.
Voluntary
- B.
Willfully
- C.
Involuntary
- D.
All purpose
Correct Answer
C. Involuntary -
- 27.
If the water is "navigable", ownership generally extends to
- A.
The bottom of the water below the surface
- B.
The high water mark at the water edge
- C.
The middle of the water edge
- D.
The center of the water
Correct Answer
B. The high water mark at the water edge -
- 28.
This type of trust is created by the owner of the property during the owner's lifetime.
- A.
Cooperative
- B.
Intermediary trust
- C.
Living trust
- D.
Lifetime trust
Correct Answer
C. Living trust -
- 29.
All title issues pertaining to the property being insured are listed on of the Title Commitment.
- A.
Schedule C
- B.
Duty to defend
- C.
Schedule A
- D.
Schedule B
Correct Answer
D. Schedule B -
- 30.
Statute of limitations for judgments in favor of the state of Maryland.
- A.
10 years
- B.
12 years
- C.
20 years
- D.
Indefinite
Correct Answer
D. Indefinite -
- 31.
The title commitment is a document that reflects all of the title search done on property through a particular date called
- A.
Right of rescission
- B.
Effective date
- C.
The gap date
- D.
The closing date
Correct Answer
B. Effective date -
- 32.
Which limitation is not legally enforceable on land use?
- A.
Covenants
- B.
Conditions
- C.
Restrictions
- D.
Amendments
Correct Answer
D. Amendments -
- 33.
What would be a nonresident individual applicable tax rate on the sale of a property?
- A.
82.5% of the mortgage payoff
- B.
75% of the mortgage payoff
- C.
82.5% of the purchase price
- D.
75% of the purchase price
Correct Answer
D. 75% of the purchase price -
- 34.
Any charge, claim, or liability against the title.
- A.
Encumbrance
- B.
Lien
- C.
Restriction
- D.
Covenants
Correct Answer
A. Encumbrance -
- 35.
A judgment lien is a court order issued against the debtor and in favor of the plaintiff for a specific amount of money at the conclusion of a lawsuit. Once recorded in the county records, it becomes a
- A.
Specific lien
- B.
Convoluted lien
- C.
General lien
- D.
Confirmed lien
Correct Answer
C. General lien -
- 36.
Most leasehold owners can redeem "ground rent" by paying an amount equal to annual ground rent capitalized at a rate (Deed of Redemption)
- A.
10%
- B.
5%
- C.
6%
- D.
20%
Correct Answer
C. 6% -
- 37.
Statute of limitations of judgments in favor of the United States of America
- A.
20 years
- B.
12 years
- C.
10 years
- D.
Forever
Correct Answer
A. 20 years -
- 38.
Who controls trust money deposited into the Maryland Affordable Housing Trust (MAHT)?
- A.
The bank
- B.
The attorney
- C.
The underwriter
- D.
The title insurance producer (title insurer)
Correct Answer
A. The bank -
- 39.
Who signs for bankruptcy in Chapter 7?
- A.
The owner
- B.
The trustee
- C.
The lender
- D.
The title company
Correct Answer
B. The trustee -
- 40.
A quitclaim deed
- A.
Warrants property through trusts
- B.
No guarantee that land being sold is free of encumbrances
- C.
Carries no warranty at all
- D.
Covenant against encumbrances listed in the deed
Correct Answer
C. Carries no warranty at all -
- 41.
In reference to the prohibited practices, the following is not considered an illegal referral fee to a TIP
- A.
Fee
- B.
Kickback
- C.
Percentage
- D.
Commission
Correct Answer
D. Commission -
- 42.
If a joint tenant sells his/her interest, the tenancy becomes
- A.
Tenants in common
- B.
Community property
- C.
Remains joint tenancy
- D.
Tenants in severalty
Correct Answer
A. Tenants in common -
- 43.
A title insurance producer may sell:
- A.
Title hazard insurance
- B.
Title insurance and health insurance
- C.
Title insurance
- D.
Property insurance
Correct Answer
C. Title insurance -
- 44.
The federal law that requires financial institutions to obtain, verify, and record information that identifies each person who opens an account
- A.
IYOLA Identification Program (IIP)
- B.
MAHT Identification Program (MIP)
- C.
Customer Identification Program (CIP)
- D.
Closing Disclosure Program (CDP)
Correct Answer
C. Customer Identification Program (CIP) -
- 45.
Jane filed for bankruptcy Chapter 13 and voluntarily surrendered her home to the lender in exchange for terminating her loan. She gives the lender a
- A.
Referee's deed
- B.
Deed of trust
- C.
Gift deed
- D.
Deed in lieu of foreclosure
Correct Answer
D. Deed in lieu of foreclosure -
- 46.
Which of following best describes an easement?
- A.
Right to possess a property
- B.
Right to use your own property
- C.
Right to use the property next to your property
- D.
Disallowance of the use of a property
Correct Answer
C. Right to use the property next to your property -
- 47.
A TIP (other than Maryland self-employed attorneys and law firms) must file a blanket surety bond or letter of credit in the amount of
- A.
200,000
- B.
100,000
- C.
150,000
- D.
250,000
Correct Answer
C. 150,000 -
- 48.
How many hours of continuing education credits (including 3 hours are Ethics training) are required to renew a title producer's license?
- A.
30
- B.
20
- C.
16
- D.
25
Correct Answer
C. 16 -
- 49.
An attorney who solicits, procures or negotiates title insurance contracts
- A.
Must appear before Maryland Appeals Court to practice
- B.
Is exempt from any title insurance producer continuing education
- C.
Must take the pre-licensing exam
- D.
Cannot practice law in Maryland
Correct Answer
B. Is exempt from any title insurance producer continuing education -
- 50.
The Commissioner may deny a license to an applicant, except for
- A.
Late renewal due to circumstances
- B.
Arrears with child support
- C.
Lack of trustworthiness
- D.
Attempt to obtain license by misrepresentation
Correct Answer
A. Late renewal due to circumstances -
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 21, 2022Quiz Edited by
ProProfs Editorial Team -
Feb 10, 2019Quiz Created by
Nicole Williams
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