TIPIC EXAM (2024/2025) - Questions with Verified Answers Giving something of value in exchange to an insured to induce the purchase of an insurance
... [Show More] policy is: a.) fraud b.) negligence c.) rebating d.) commingling The blocked person's list of specially designated nationals is maintained by: a.) HUD b.) FDIC c.) Department of Treasury d.) CFPB Pursuant to Maryland anti-rebating statue, the following items cannot be given to a client as inducement for business: a.) home warranty b.) legal services c.) uber rides d.) all of the above Permissible promotional items used in marketing title insurance services include: a.) pens b.) calendars c.) mugs d.) all of the above The loan estimate form must be given to consumers: a.) At least 5 days after submitting a loan application b.) At least 4 days after submitting a loan application c.) At least 3 days after submitting a loan application d.) At lease 2 days after submitting a loan application A producer may not knowingly offer, promise, or give any valuable consideration not specified in the policy, except for education materials, promotional materials, or articles of merchandise that cost no more than ____ regardless of whether a policy is purchased. a.) $25 b.) $30 c.) $40 d.) $50 Which pre-requisite is not required to become a title producer? a.) Be at least 21 years of age b.) Successfully pass an examination required by the Administration. c.) Must possess the general fitness, competence and reliability sufficient to satisfy the Insurance Department that the applicant is worthy of being licensed. d.) Pay all appropriate fees The closing disclosure must be delivered: a.) 3 business days before settlement b.) 3 business days before disbursement c.) 3 business days before application d.) None of the above Pursuant to RESPA, the only thing of value that can be received by an affiliated business in a title insurance transaction is: a.) A kickback as defined by the business operating agreement. b.) A fee as defined in the company's bylaws. c.) A return on the ownership of the affiliate d.) No return can be received RESPA applies to: a.) all residential transactions b.) residential and commercial transactions c.) residential transactions involving 1-4 family units d.) all residential transactions and commercial transactions backed by HUD Insurers must maintain for inspection by the Maryland Insurance Administration: a.) copies of producer licensing applications b.) copies of insurance exams c.) a produce's register d.) none of the above A title insurer must update their producer's register within how many days of a termination or an appointment: a.) 10 days b.) 15 days c.) 20 days d.) 30 days The Commissioner of Insurance has the authority to do all of the following EXCEPT: a.) Examine the financial affairs of insurers doing business in Maryland. b.) Change insurance laws at any time c.) Hold hearings d.) Write rules and regulations to enforce state insurance laws. In Maryland, criminal or prohibited acts committed by insurance producers under Maryland Insurance law, are producers under Maryland insurance law, are prosecuted by a.) The Maryland Insurance Commission b.) The Attorney General's Office c.) The State Prosecutor d.) The county prosecutor where the prohibited act occurs Which of the following statements best describe insurance rates? a.) The regulatory objectives of insurance rating are that rates shall be adequate, not excessive, and not unfairly discriminatory. b.) The law does not permit rates to be discriminatory. c.) Insurers are not permitted to enter into a cooperative action in rate making. d.) Insurers are allowed to use whatever rates they want. The following is true regarding remote online notarizations: a.) It is not legal in Maryland b.) The law became effective January 1, 2020 c.) The law became effective January 1., 2021 d.) The law became effective October 1, 2020 Page 1 of a Maryland Intake Sheet: a.) Will accommodate 1 document b.) Will accommodate 2 documents and an addendum can be used for the remaining documents c.) Will accommodate 3 documents and an addendum can be used for the remaining documents d.) Will accommodate for documents and a addendum can be used for the remaining documents Non-allowable behavior pursuant to RESPA includes: a.) accepting fees, kickbacks or things of value to induce business. b.) a lender setting up contest for real estate agents to give them business. c.) a lender giving a borrower a chance to win a trip for doing business with them d.) all of the above The authority given by an insurance company to an agent that is usually not specifically told or communicated is called: a.) apparent authority b.) implied authority c.) express authority d.) actual authority Pursuant to RESPA, when there is a affiliated business arrangement, fees appearing on a closing disclosure should only be charged based on: a.) agreement between the affiliated businesses b.) services actually rendered c.) approval by the lender d.) the title insurer fee schedule Pursuant to Maryland's Wet Settlement Act, in a purchase transaction funds must be disbursed: a.) the week prior to settlement b.) the day before settlement c.) the day of settlement d.) three days after settlement The simultaneous issue rate is given when: a.) a buyer purchases an owner's policy b.) a buyer purchases a lender's policy c.) a buyer purchases an owner's and lender's policy d.) None of the above Which of the following statements is correct about the Insurance Commissioner: a.) He or she is appointed by the Governor b.) He or she can demand an examination of records c.) He or she can approve, deny or revoke a license d.) All of the above The maximum penalty for someone in the insurance business who has been prosecuted & convicted by the attorney general for knowingly engaging in fraud is: a.) 10 years in prison and a $10,000 fine b.) 10 years in prison and a $50,000 fine c.) 5 years in prison and a $10,000 fine d.) 5 years in prison and a $50,000 fine When a title company established a escrow account, the account must be labeled as: a.) a title company account b.) a trust account c.) an IOLTA account d.) an operating account Unless specified in a deed of trust, the most that can be charged for a release in Maryland is: a.) $15 b.) $20 c.) $25 d.) $30 Non-MD residents that sell a property are charged a percentage based on what? a.) Mortgage payoffs b.) Total payment c.) 50% of the purchase price d.) 25% of the purchase price Which of the following statements is with regards to rebating? a.) rebating is the act of giving back to the insured money or some other form of consideration for the purpose of inducing the person to purchase insurance. b.) rebating is illegal under Maryland insurance laws and laws related to unfair practices. c.) rebating is a form of unfair discrimination d.) all of the above Unclaimed checks must be handled pursuant to: a.) the insurance contract b.) insurance law c.) Maryland's escheatment law d.) the insurance application [Show Less]