Alabama Title Insurance Practice Test

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• What is generally a requirement for obtaining a title insurance agent license in Alabama?
• Which element is excluded from the privacy notices required under the Gramm-Leach-Bliley Act?
• Payments under the ALTA 2006 form policy reduce the amount of insurance by what?
• What must an entity do in relation to conducting business to prove it’s viable?
• A contract related to title insurance must set forth the name of which party for comparison against the grantee's name on the last deed of record?
• What is the document evidencing the VA guarantee of a mortgage loan on behalf of a veteran borrower?
• A homeowner's association lien in Alabama is effective for how many years from the date of filing?
• What is the purpose of a title order/search request?
• If the referral takes place over the phone, the Affiliated Business Disclosure information must be communicated orally by the person making the referral, with written disclosure made within _____ business days following the phone referral.
• After failing the exam multiple times, how long must an individual wait before retaking the exam?
• What is the time frame an applicant or licensee has to request a hearing after the commissioner refuses an application for licensure?
• Which of the following tasks would NOT be considered part of the post-closing process?
• According to the Alabama Title Insurance Act, what is the term for the amount charged for assuming liability and risk under a title insurance policy?
• A non-attorney closing agent would NOT be permitted to do which of the following in regard to UPL issues?
• Which duty can a non-attorney settlement agent perform regarding closing disclosures?
• Under the Gramm-Leach-Bliley Act, which of the following is NOT included in recommendations regarding procedures for ensuring the secure transmission of customer information?
• In which scenario is a statement regarding CPL coverage NOT required?
• Which of the following is NOT an involuntary source of title?
• Which entity is responsible for ensuring compliance with the instructions of the lender during closing?
• Which information is NOT part of what needs to be inserted in Commitment Schedule A for a title commitment?
• Which of the following would NOT be included in a title examination?
• In the context of title insurance, what does "examination" usually refer to?
• Who issues a Closing Protection Letter in a loan transaction?
• Which statements are true regarding legal descriptions?
• Which action is essential before a title commitment can be finalized?
• Which of the following is not prohibited under RESPA Section 1024.14?
• What type of information must financial institutions safeguard under the Gramm-Leach-Bliley Act?
• According to the ALTA 2006 form policy, where is the "Amount of insurance" defined?
• What does the term "Public Records" refer to under the ALTA 2006 form policy?
• Which violation type may subject a licensee to an administrative proceeding under the ALDOI Insurance Rule?
• According to the 2007 GAO report, which factors raise questions about the title industry?
• Under the ALDOI Insurance Rule, title insurance agents must be what regarding any and all title insurers they represent?
• Range lines appear every how many miles east and west of a principal meridian?
• Under the ALDOI Insurance Rule, how long can a license be placed on probation?
• How often must a title insurance agent license be renewed in Alabama according to the Title Insurance Act?
• What type of risk does Loan Policy Covered Risk No. 11(b) specifically protect against?
• Included in the definition of "Insured" under a loan policy is which entity?
• Which of the following would NOT be considered personal property?
• The Southeast Land Title Association Code of Ethics aims to encourage what within its services?
• If the Company is unable to determine the amount of loss or damage, what may it require from the Insured Claimant?
• According to the TRID Rule, how should the title premium for a new owner's policy be disclosed on the Closing Disclosure?
• What is the primary purpose of a title search?
• What is required for the validity of legal descriptions in property transactions?
• What does a title insurance policy primarily protect against?
• How are encumbrances on the title shown on the final title policy?
• What is the time frame noted in ALDOI Insurance Rule 482-1-148-.13(3)(d) for a suspended licensee to apply for renewal without additional course requirements?
• Under the Alabama Title Insurance Act, who must print or write their name and license number beneath their signature on title documents?
• In the context of title insurance, what does the term "encumbrance" refer to?
• Under the ALTA 2006 form policy, which of the following is NOT covered risk?
• Which of the following entities is NOT included under the definition of "Entity" in the ALTA 2006 form policy?
• Under the Gramm-Leach-Bliley Act, which area is NOT considered particularly important when assessing risks to customer information?
• What is typically provided to the seller to address title defects?
• Invalidity or unenforceability of the lien of the Insured Mortgage based on usury or truth-in-lending law is classified as what under the loan policy?
• What is the primary benefit of title insurance for a property buyer?
• When can an insured party expect to see the policy coverage outlined in?
• Which is NOT a type of record maintained by the Clerk of the Circuit Court?
• Which of the following actions would NOT be a violation of Section 8?
• What is the main responsibility of a title insurance agent once they receive their license?
• In Alabama, how many years must pass since a tax sale before a purchaser may request a tax deed?
• Who is defined as the "Insured" in a loan policy?
• What must a settlement agent comply with on a purchase/sale with finance?
• Under Alabama law, what is the purpose of a title commitment?
• Which document typically includes an assurance against defects in the title?
• Which documents might a title insurer require prior to insuring a tax deed?
• In the northern half of Alabama, which survey's origin was established by the Meridian and Base Line?
• Which of the following does NOT fall under the category of defects and claims against a title?
• What must every premium rate filing by a title insurer state according to the Alabama Title Insurance Act?
• When state law is inconsistent with RESPA regulations, which takes priority?
• The phrase "the invalidity or unenforceability of any assignment of the insured mortgage" is classified as what under the loan policy?
• What is included in the definition of "Indebtedness" under the loan policy?
• Which of the following is a requirement to obtain a title insurance agent license in Alabama?
• A leasehold estate is defined as a/an _____ estate which is insurable.
• Which statement is TRUE regarding insurance coverage under the ALTA 2006 policy?
• Which document would typically outline the powers and restrictions of a title agent?
• What is considered a standard task in pre-closing procedures?
• Which of the following is included in determining if an AfBA entity continues being viable?
• What is the maximum per-day penalty for recklessly engaging in a violation under the Dodd-Frank Act?
• What does the abbreviation "TILA" in TILA-RESPA stand for?
• What is the purpose of the title commitment?
• Most recorders' offices may lag behind on what aspect of recording instruments?
• The purpose of the _____ is to examine the search report and supporting documents to establish current status of title.
• Which of the following is typically included in a title policy?
• What does Section 8 of RESPA permit concerning promotional activities?
• Under Alabama Code 34-3-1, what is the maximum imprisonment term for practicing law without a license?
• Under Alabama Title Insurance regulations, which entity is responsible for maintaining transaction records securely?
• How often must individual licensees renew their license according to ALDOI Insurance Rule 482-1-148-.08(2)(a)1?
• According to Alabama Code 35-4-24, which of the following is NOT a designated officer for taking acknowledgments?
• What improvements are associated with a file control sheet or electronic file tracking system?
• Under RESPA, which of the following is NOT considered a thing of value?
• What should be ordered immediately prior to closing?
• A title insurer under a title commitment commits to issue title policies based on all of the following EXCEPT?
• Which of the following is NOT a common requirement for title insurance policy issuance?
• Loan Policy coverage is provided as to the invalidity, unenforceability, or avoidance of an insured mortgage due to the failure of its what?
• What would NOT be shown on a survey of a platted subdivision lot?
• What is not required for ethical decision-making?
• Under the ALTA 2006 form policy, what is the only item that is considered "Land"?
• Which item does NOT relate to easements and restrictions?
• What does the term "encumbrance" generally refer to in the context of title insurance?
• What was a notable revision in the ALTA 2006 title policy regarding arbitration?
• What describes the unenforceability of the lien of the Insured Mortgage due to compliance failure?
• What type of agreement is title insurance classified as?
• Which of the following is considered a financial risk in title insurance?
• Under the ALTA 2006 form policy, required notices must be delivered to which of the following?
• Under the ALTA 2006 form policy, the extent of Company liability for loss or damage shall not exceed?
• Under the ALTA 2006 form policy, "Insured Claimant" refers to whom?
• When Sam records a certified copy of a judgment rendered against John in the jurisdiction in which John owns real property, the judgment becomes a:
• What is the subsurface estate that may be severed from the surface estate?
• Which is a common form of legal description in older rural areas?
• What happens to the insurance amount for payments made under the ALTA 2006 form policy?
• What happens to the obligations of the Company under the ALTA 2006 policy after payment is made to the Insured?
• The township sections of irregular size are often referred to as what?
• The outline of the examination for title insurance agents will be posted by which organization?
• Which of the following actions is not included in the Gramm-Leach-Bliley Act recommendations for securing customer information?
• Which document is issued to verify eligibility for a VA mortgage loan?
• Which type of insurance policy is directly related to protecting against defects in the title of real estate?
• A township section is one square mile and contains how many acres?
• What is NOT another name for an alpha index?
• What is included as evidence that a thing of value is given for the referral of business under the ALTA 1996 Statement of Policy?
• Under the Alabama Title Insurance Act, the term premium includes any amount retained by or paid to an agent under agreement with which entity?
• Under the Alabama Title Insurance Act, what must premium rates for title insurance policies be in accordance with?
• Under the ALDOI Insurance Rule, all title insurance agent appointments are handled on-line through which platform?
• In Alabama, all liens for ad valorem taxes are what in relation to all other liens?
• Which of the following is NOT a standard exception on a title commitment?
• According to the Rules of Agency, which of the following is NOT a fiduciary duty of a title agent to their insurer?
• How many days must a satisfaction of mortgage be filed after written demand?
• Which factor is NOT relevant in determining the worthiness of an AfBA entity?
• What must legal descriptions survive throughout?
• The Dodd-Frank Act is primarily aimed at what purpose?
• What is the nature of a leasehold estate in title insurance?
• What is the standard exception noted in a title commitment for defects, liens, and encumbrances occurring after the effective date but before the proposed insured acquires the estate?
• Which type of deed creates Grantor liability for actions of predecessors in title?
• When may a title insurance agent become involved in preparing endorsements to policies?
• Under the Rules of Agency, what action may NOT be taken by a title insurer when a title agent violates fiduciary duties?
• Which of these is NOT a pre-closing task?
• Under the ALTA 2006 form policy, "Unmarketable Title" permits a prospective purchaser to be _____ if there is a contractual condition requiring delivery of marketable title.
• Under the Rules of Agency, how is the fiduciary relationship between a title insurer and title agent evidenced?
• Under the ALTA 2006 title policy, the "Insuring Provisions" are referred to as what?
• The lack of priority of the lien of the insured mortgage over any other lien is classified as what in the loan policy?
• Which of the following best describes the process of post-closing title insurance?
• What document provides the commitment typist with written examination notes?
• In cases of mortgage fraud, which of the following is NOT considered a false statement when a settlement agent signs the Closing Disclosure certification?
• Under the ALTA 2006 form policy, which of the following is NOT included under Covered Risk No. 2 regarding title defects?
• Which of the following is NOT an Exclusion from Coverage under the ALTA 2006 form policy?
• Many industry experts recommend that title agents block which of the following?
• Title insurance insures a _____ right of access to a public roadway.
• A title agent's main fiduciary responsibility is to the:
• In the early part of the 20th Century, title insurance primarily competed with which system?
• What is typically included in the duties of a title agent to their insurer under the Rules of Agency?
• What document provides a guarantee that an agent properly conducted a title search?
• Which term describes the purpose of surveying property boundaries?
• Under the Gramm-Leach-Bliley Act, what is required of companies regarding customer information?
• Under the Alabama Title Insurance Act, what is the minimum number of continuing education hours required for title insurance agents every biennial cycle?
• On a mortgage finance transaction, what is the first document that must be reviewed with the borrower?
• What is the meeting point of the Huntsville and St. Stephens surveys in Alabama?
• What type of closing service requires all documents to conform to contract requirements?
• A grantee must be capable of _____ for title to convey.
• Which of the following descriptions fits a title commitment exception?
• Which of the following must accompany a title insurance policy to alert the lender to certain conditions?
• Where is a title agent's authority to negotiate title insurance risk rates established?
• Under the loan policy, when must the Insured transfer the insured mortgage to the Company?
• What type of notice are financial institutions required to provide under the Gramm-Leach-Bliley Act?
• Closing disclosures are necessary for which type of transactions?
• What type of law primarily governs title insurance practices in Alabama?
• The Southeast Land Title Association [SLTA] Code of Ethics states that the _____ is the instrumentality through which titles to land reach their highest accuracy.
• Which of the following factors helps determine if an affiliated business arrangement is viable?
• According to Alabama insurance regulations, how often can a title insurance agent receive credit for an approved course?
• Which latitude is represented by the equator?
• What is the role of the curative period in title insurance agreements?
• Which type of book is used to maintain a list of all judgments rendered?
• Which of the following is NOT a Covered Risk under the ALTA 2006 form policy?
• An increase in the amount of land due to permanent withdrawal of a river or sea is known as?
• Which of the following creates a limitation on property use?
• The ALTA 2006 policy form primarily serves which type of clients?
• Under the ALTA 2006 form policy, when must matters be arbitrated related to an Amount of Insurance of $2,000,000 or less?
• What type of tenancy must be established by an express act?
• A deed that does not mention mineral rights is considered to convey what?
• Which of the following is NOT included in the recommended list of people for purposes of initiating wire transfers?
• Which type of lien is specifically cited as a risk by Loan Policy Covered Risk No. 11(b)?
• Whether the Closing Disclosure is prepared by the lender or settlement agent, it is prudent for the settlement agent to obtain a _____ affidavit signed by buyer and seller on a purchase/sale/finance transaction:
• After how many months of expiration must a title insurance agent reapply for licensure according to the Alabama Title Insurance Act?
• How many acres are in the S 1/2 of the NW 1/4 of the NW 1/4?
• Under the ALTA 2006 form policy, which of the following is NOT a Covered Risk?
• What is NOT considered part of a title insurance agent's responsibilities regarding customer information?
• According to a 2007 GAO report, the state and federal regulators identified a number of alleged instances of illegal payments, resulting in fines totaling what amount?
• Under the ALTA 2006 form policy, what occurs upon the company settling and paying a claim?
• What term refers to the legal record of property ownership maintained by the Clerk of the Circuit Court?
• The purpose of commitment clearing is to ensure compliance with what?
• What does a title search typically involve?
• Which of the following is NOT a Covered Risk under the ALTA 2006 form policy?
• What is NOT a ground for an individual applying for a title insurance agent license to be denied under the Alabama Title Insurance Act?
• Under the Gramm-Leach-Bliley Act, which is NOT a recommended protocol for a security breach?
• In Alabama, ad valorem taxes owed to the state are paid:
• Which situation is NOT considered under the "Continuation of Insurance" clause according to ALTA 2006?
• In Alabama, how many years from the stipulated maturity date is a mortgage deemed satisfied if no satisfaction is recorded?
• When should the initial Privacy Act disclosure be provided according to the Gramm-Leach-Bliley Act?
• According to ALDOI Insurance Rule 482-1-148-.08(2)(a)3, when will the license of a person born in an odd-numbered year expire if not renewed?
• When was the Dodd-Frank Act enacted?
• Which of the following is NOT shown on Schedule A of the title commitment?
• According to the TRID Rule, when does a consumer become contractually obligated on a credit transaction?