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| Section | Weight | Objectives |
|---|
| Insurance Regulation | 25% | - Pennsylvania insurance statutes and regulations - Licensing requirements and procedures - Unfair trade practices and ethics
|
| General Insurance Concepts | 15% | - Risk and indemnity - Basic insurance principles - Contract law fundamentals
|
| Title Insurance Principles | 25% | - Purpose and function of title insurance - Title search and examination procedures - Title commitments and policy forms - Exceptions and risk elimination
|
| Real Estate Transactions & Settlement | 10% | - Policy issuance and delivery - Escrow and closing procedures - Disbursement and record-keeping
|
| Real Property Law | 25% | - Liens, encumbrances, and easements - Property rights and interests - Conveyance and recording statutes
|
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Insurance Licensing Pennsylvania Producers Examination for Title Insurance Series 16-10 Sample Questions (Q32-Q37):
NEW QUESTION # 32
A state tax lien filed in the county where the taxpayer owns property is
- A. only a lien upon the sale of the property.
- B. a lien against any property owned by the taxpayer in the county.
- C. a lien that remains in force for a 3-year period.
- D. only a lien against the property described in the lien.
Answer: B
Explanation:
A state tax lien filed in the county where the taxpayer owns property operates as a lien against the taxpayer's property in that county, not merely against one specifically described parcel or only when the property is sold.
Tax liens are involuntary liens created to secure unpaid tax obligations and must be considered in title examination because they can affect sale, refinance, priority, and insurability. Pennsylvania tax lien rules provide that, upon entry of record by the prothonotary where the property is situated, the tax amount is a lien in favor of the Commonwealth against the taxpayer's real property and certain personal property. The Pennsylvania title outline includes taxes and assessments, federal liens, judgments, and voluntary and involuntary liens.
NEW QUESTION # 33
Which of the following is NOT among the requirements for recording a document affecting title to property in Pennsylvania?
- A. The stamp of the notary must be clear and legible and nothing may be written over it.
- B. The addresses of grantees must be provided on a special form appended to the document.
- C. The executed title insurance policy must be sent to the state insurance department.
- D. The signatures on the document must be acknowledged.
Answer: C
Explanation:
Sending the executed title insurance policy to the state insurance department is not a requirement for recording a document affecting title. Recording requirements concern the instrument being recorded, such as proper execution, acknowledgment, legible notary information, grantee or mortgagee address certifications, applicable transfer tax documents, and formatting requirements imposed by the recorder. The title insurance policy is an insurance contract issued to the insured; it is not part of the deed or mortgage recording package that must be sent to the Insurance Department for recording to occur. Pennsylvania recording practice requires recordable documents to meet execution and address requirements, and deeds are commonly accompanied by applicable transfer tax documents. The Pennsylvania title outline lists requirements to record and recording steps under Real Estate Transactions.
NEW QUESTION # 34
Title insurance NOT covering the insured for unpaid property taxes, which are NOT known at the time of closing, would be considered a
- A. judgment.
- B. federal lien.
- C. covenant.
- D. standard exception.
Answer: D
Explanation:
Unpaid property taxes that are not known or not shown as existing liens at the time of closing are typically handled as a standard exception from title insurance coverage. A standard exception removes broad categories of risk from coverage unless the title company has enough evidence to delete or modify the exception. The answer is not "judgment" because a judgment is a court-created lien. It is not "federal lien" because the question refers generally to property taxes, not a federal tax lien. It is not "covenant," because covenants are restrictions or promises affecting land use. Pennsylvania's title outline specifically includes Schedule B exceptions, exclusions, taxes and assessments, and general exceptions as tested title-insurance concepts.
NEW QUESTION # 35
Title is vested in Bill and Monica. The deed says nothing as to how they are to hold title or as to their marital status. They are NOT married to each other. The presumption is that
- A. they are tenants in common.
- B. they are tenants by the entirety.
- C. the conveyance is void.
- D. they are joint tenants with rights of survivorship.
Answer: A
Explanation:
When title is conveyed to two unmarried people and the deed does not specify another form of ownership, the presumption is tenancy in common. Tenancy by the entirety is available only to married spouses, so it cannot apply to Bill and Monica. Joint tenancy with right of survivorship generally requires clear survivorship language and is not presumed from silence. The conveyance is not void merely because the deed fails to state the tenancy form. In Pennsylvania, a conveyance to two or more persons is presumed to create a tenancy in common unless the deed clearly provides otherwise. This matches the exam outline's real-property focus on joint ownership, tenants in common, joint tenancy, and tenancy by the entirety.
NEW QUESTION # 36
Title is held by John and Kate, as joint tenants with right of survivorship. If John dies, which is the simplest manner of establishing record evidence of the marketable title in Kate?
- A. Record a certified copy of a probate court order of John's estate distributing the home to Kate.
- B. Nothing is required.
- C. Record in the county where the property is located a certified copy of John's death certificate.
- D. Probate the estate of John.
Answer: C
Explanation:
Because John and Kate held title as joint tenants with right of survivorship, John's interest passes to Kate by operation of law at John's death. The simplest way to show this in the land records is to record a certified copy of John's death certificate in the county where the property is located. Probate is not needed to transfer John's survivorship interest to Kate because the property does not pass through John's estate for this purpose.
"Nothing is required" is unsafe from a title standpoint because the record still needs evidence explaining why John's interest is no longer outstanding. This issue fits the Pennsylvania outline's treatment of joint tenancy, decedents' estates, probate concerns, and affidavits/record evidence used to clear title.
NEW QUESTION # 37
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