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Insurance Licensing Pennsylvania Producers Examination for Title Insurance Series 16-10 Sample Questions:

1. The MAIN purpose of an endorsement is to

A) decrease the premium.
B) modify the policy.
C) describe the covered losses.
D) increase the premium.

2. In 1990, Eddie granted to Bob an easement to cross Eddie's land to reach some hunting grounds off the highway. The easement was depicted on a plat of survey recorded in the county land records. In 1995, Bob stopped hunting and has not used the easement since. Bob never intends to go back there again. How can Eddie get rid of the easement that crosses his property, so that Eddie can sell the land free of the easement?

A) Eddie can sell the land without regard for the easement because Bob stopped using it in 1995.
B) Bob must join Eddie in the execution of the contract to the new buyer to release the new buyer from the effects of the easement.
C) Eddie can sell if Bob executes a release of the easement and it is filed at the recorder's office.
D) The easement can be considered abandoned because Bob no longer hunts and has no intention to use the easement in the future.

3. The commissioner may refuse to issue a license if the applicant

A) provided incorrect information on licensing application.
B) has allowed an insurance license to lapse.
C) is not a resident of Pennsylvania.
D) is 20-years of age.

4. The sale of a property was subject to the buyer's being able to assume an existing loan on the property. Upon examination, the note was found to contain a clause that prohibited the assumption of the loan. The clause was

A) a prepayment clause.
B) a subordination clause.
C) a due-on-sale clause.
D) an assumption clause.

5. Title insurance NOT covering the insured for unpaid property taxes, which are NOT known at the time of closing, would be considered a

A) federal lien.
B) standard exception.
C) judgment.
D) covenant.

Solutions: