Louisiana Insurance Exam Prep (Title), Louisiana Title Insurance Exam QUESTIONS WITH COMPLETE 100% VERIFIED SOLUTIONS 2024/2025 CONTRACTS - Aleatory Contract A contract in which the performance of either party's obligation depends on an uncertain event INSURANCE - Benchmark Rate(s) The rate set annually by the Commissioner of Insurance by line, relative to which the flexibility bands and statutory rate limitations apply. Full screen INSURANCE - Churning Can occur when an agent persuades a consumer to bor row against an existing life insurance policy to pay the premium on a new one. INSURANCE - Dividend The amount of money an insurance company may decide to distribute to policyholders. INSURANCE - Insurable Interest A financial interest in the property insu red, prerequisite to a valid contract of insurance. In life insurance, a person's or party's interest, financial or emotional, in the continuing life of the insured. INSURANCE - Misrepresentation (Material) A significant misstatement in an application form . If a company had access to the correct information at the time of application, the company might not have agreed to accept the application. INSURANCE - Rated Policy A policy issued at a higher premium to cover a person classified as a greater -than-averag e risk, usually due to impaired health or a dangerous occupation. INSURANCE - Redlining Refusal by an insurance company to underwrite or to continue to underwrite questionable risks in a given geographical area. INSURANCE - Surplus Lines Insurance coverage not available from an admitted company in the regular market; thus a surplus lines broker/agent representing an applicant seeks coverage in the surplus lines market from a nonadmitted insurer according to the insurance regulations of a particular state. INSURANCE - Underwriting An insurance company issues a policy when it believes you have a certain level of "risk" or chance of a claim. Underwriting is the process the company uses to decide whether to accept or reject an application. Companies do not make their underwriting guidelines public because they are considered to be trade secrets. INSURANCE - Unearned Premium The insured's remaining premium equity in his policy; that part of the policy premium that has not been "used up." INSURANCE - Annuity contract sold by insurance companies that pays a monthly (or quarterly, semiannual, or annual) income benefit for the life of a person (annuitant), for the lives of two or more persons, or for a specified period of time. INSURANCE - Binder temporary insura nce contract providing coverage until a permanent policy is issued. INSURANCE - Reinsurance form of insurance that insurance companies buy for their own protection, "a sharing of insurance." An insurer (the reinsured) reduces its possible maximum loss on e ither an individual risk or a large number of risks by giving (ceding) a portion of liability to another insurance company (reinsurer). PROPERTY - Real Property immovable property PROPERTY - Personal Property movable property, exluded from sale PROPERTY RI GHTS - Appurtenances rights, privileges, improvements that will pass to the new owner upon conveyance of the land PROPERTY - Improvements immovable object that has been attached to the land and increases the value, such as fences and driveways PROPERTY RIG HTS (Surface) - Riparian having to do with water PROPERTY RIGHTS (Surface) - Riparian (navigable waters) identified waterway on a federal survey map, owned by the state, can be sold or leased, leased term is 15 years PROPERTY RIGHTS (Surface) - Riparian (n on-navigable) water way that is not recorded; can be owned by the homeowner PROPERTY RIGHTS (Surface) - Accretion gaining of additional land through the gradual deposit of solid material PROPERTY RIGHTS (Surface) - Accession whenever additional land is acquired through natural causes or by joining or union with other property PROPERTY RIGHTS (Surface) - Avulsion land is taken away due to natural causes, usually more sudden than accretion SALE - Bill of Sale sale of personal property i s noted with this document PROPERTY RIGHTS (Surface) - Emblement Rights tenant may take the harvest of an annual crop even if the harvest occurred after the tenancy had ended PROPERTY - Trade Fixtures articles attached by the tenant to the building for use in conducting a trade or business; considered personal property OWNERSAHIP - Allodial System property ownership recognized in the US; land is held free and clear of any rent or service owed to the government OWNERSHIP - Eminent Domain right of the governm ent to take privately owned land for public purpose, but must compensate OWNERSHIP - Eminent Domain (condemnation) process by which the government can take land by eminent domain OWNERSHIP LIMITATIONS - Deed Restrictions private limitation on the use of the land that restrict or specify; example cutting down trees or building a fence OWNERSHIP LIMITATIONS - Easements legal right that one has to use the lands of another for a special and necessary purpose OWNERSHIP LIMITATION - Leases owner gives a tenant right to use the property and the owner gives up his right of possession in the process PROPERTY RIGHTS - Freehold Estates estates that last for an indefinite period of time, at least as long as a lifetime PROPERTY RIGHTS - Fee Si mple estate in land that lasts forever; highest degree of ownership recognized by law PROPERTY RIGHTS - Life Estate estate in land that lasts a lifetime PROPERTY RIGHTS - Reversion possession of a property will revert to the grantor upon the death of a life tenant PROPERTY RIGHTS - Remainderman the one in whom an estate vests after termination of a prior estate PROPERTY RIGHTS - Tenancy for Years lease for a definite period of time, even thoug h it does not have to be a year; do not need to give advance notice PROPERTY RIGHTS - Periodic Tenancy lease for an indefinite period of time, but you need to give advance notice PROPERTY RIGHTS - Tenancy at Will lease that is not as prevalent; no payment of rent PROPERTY RIGHTS - Tenancy at Sufferance tenant comes into possession lawfully yet unlawfully remains in possession TRANSFER of PROPERTY - Holographic Will an unwitnessed will that is the testator's handwriting and signed by him TRANSFER of PROPERTY - Adverse Possession taking title to real estate by possessing it for a certain period of time; 30 years for improved property and 60 years for unimproved property; actual, open, hostile, exclusive, continuous, uninterrupted, visible, and notorious TRANSF ER of PROPERTY - Tax Foreclosure if a owner is not paying taxes on the property and is delinquent for 6 months after the tax year, then there will be a tax sale. owner has 2 years to redeem property, but only 6 months if municipality buys the tax sale TRAN SFER of PROPERTY - Chapter 7 Bankruptcy liquidation of assets, everything is sold, and you don't have to pay TRANSFER of PROPERTY - Chapter 13 Bankruptcy debt repayment leading to higher or lower filing rates, could just change the amount of money that is owed per month so you can gradually pay off your debt PROPERTY RIGHTS - Bundle of Rights rights of possession, control, disposition and enjoyment; also called title PROPERTY DESCRIPTION - metes and bounds a method of describing or locating real property; m etes are measures of length and bounds are boundaries; a description starting with a well -marked point of beginning PROPERTY DESCRIPTION - Monument any physical evidence of a boundary line, can be a tree, rock, or pipe PROPERTY DESCRIPTION - Datum level surface from which elevations are measured PROPERTY DESCRIPTION - Different Ways to Survey Land 1) metes and bounds 2) boundary system 3) lot and block number 4) monuments 5) street address 6) tax map identification PROPERTY DESCRIPTION - Survey the process by which a parcel of land is measured to identify the exact boundaries of the property and determine if all structures are completely within those boundaries PROPERTY DESCRIPTION - Bench Mark
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