Missouri Insurance Test

Any findings in the adopted report may be appealed within how many days with a hearing in front of the director.

30 Days

The director is required to preform an examination of every insurer licensed in the state how once every how many years?

5 years

how many days should the examiner submit their report to the director for review

60 days

Commitment/Binder (preliminary Certificate)

A binding contract with a title company to issue a specific title policy, showing only those exceptions contained in the commitment. Contains all info included in the preliminary title report

Encumbrances - Anything affecting value of property

A claim or liability against real estate, held by someone other than the fee owner of the property that affects the title to the property, and therefore its value.

Policy

A contract insuring or indemnifying owners of, or other persons lawfully interested in, real or personal property or an interest in real or personal property against loss or damage.

Quiet Title

A court action to determine ownership or remove a cloud of a title.

General Warranty Deed - Same as Warranty deed

A deed containing a covenant whereby the seller agrees to protect the buyer against being dispossessed because of any adverse claim against the land.

Special Warranty Deed - In result of Foreclosure

A deed containing a covenant whereby the seller agrees to protect the buyer against being dispossessed because of any adverse claims to the land by the seller, or anyone claiming through the seller.

Warranty Deed - Main, basic deed

A deed that guarantees a clear title to the buyer of real property. They are standard for average home sales. That's because warranty deed not only transfers ownership of property from one party to another, it also provides a new owner with a "Warranty" or guarantee that the title is free and clear of any unknown claims or encumbrances. Commonly used when a property is purchased at or around its fair market value. Implies certain warranties that the seller, or grantor provides to the buyer or grantee.

Joint Tenancy - Right of Survivorship

A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition.

Guardianship - no estate only responsible for personal care

A legal proceeding for an incapacitated person or a minor; in this case, the Guardian is responsible for the personal care of the ward, not the disposition of the wards estate

Conservatorship - handles estate and finances

A legal proceeding for an incapacitated person or a minor; the court will appoint a conservator who has authority to dispose of the wards estate

Lender's Policy

When a mortgage is granted, the lender seeks protection for their investment and requires a policy be issued to protect against losses resulting from claims made by others against the property.

Director - Examination of Records

Within 60 days of the examination, the examiner must submit his report to the director for review. After 30 day review period, there's allowance for rebuttals.

Deed of Trust -Borrow money/ Lien

a document by which the title to land is conveyed as security for the repayment of a loan or other obligation

Inventory and Appraisement - Listing and valuation of all divorcing couples property

a document which must be filed with the probate court outlining all of the deceased/incapacitated persons estate, including both real and personal property

lis pendens

a notice that there is an action or lawuit pending that may adversley affect the title

Testate - Died with a will

a person estate is testate if there is a will. The probate case will be based upon the deceased will.

decendent

a person who has died

Intestate - Died without a will

a person's estate is intestate if there is no will. distribution of the estate will be based upon the law of intestate succession.

easement

a right to cross or otherwise use someone else's land for a specified purpose. I.E. to install operate and maintain utility lines

Foreclosure - taking property when owner fails to pay

A legal proceeding in which real estate secured by a mortgage or deed of trust is sold to satisfy the underlying debt

Judgment Liens - Was in an accident and had to pay a settlement but did not, good for 20 years

A lien which is created when a judgement is entered against the owner of land in the Circuit Court (state level)

Leasehold - Insuring leasing of property

A policy of title insurance related to a lease. may be a leasehold owners (issued to the leasehold owners/lessee) or Leasehold Loan (issued to the lender whose security is the leasehold interest in the property)

Exceptions

A provision in a title insurance policy binder or policy that excludes liability for a specific title defect or an outstanding lien or encumbrance, such as easements and restrictions

INDIVIDUAL PRODUCER

A resident of the State of Missouri applying for a producers license after January 1, 2008 must successfully pass an examination concerning the lines of authority for which application is made. Producers license: Good for two years Cost $100 per license If lapses, may renew or reinstate within 12 months of expiration and pay $25 fine Must complete 8 hours of CE per year

How long do you have whose license expires to renew or reinstate?

12 months

A public hearing regarding any rules by the director must be issued how many days before adoption?

15 days

How long is a producers and business entity license valid for? How much is the fee?

2 years. $100

ALTA Form - Loan Policy Form

American Land Title Association - created and distributed several uniform forms for use across the entire industry, which title insurers can choose to use. Each form must be submitted by the individual insurer to the department for approval. These forms include policies and endorsements

Endorsement

An addition or modification of a title insurance policy which expands or changes coverage of the policy, fulfilling specific requirements of the insured.

Affiliated business arrangement - Affiliation with specific company

An arrangement in which (A) person who is in a position to refer business incident to or part of a real estate settlement service involving a federally related mortgage loan, or an associate of such a person and (B) either of such persons directly or indirectly refers such business to that provider or affirmatively influences the selection of the provider

Title Insurer

An entity that underwrites title insurance coverage.

Encroachment - If something on anthers property comes into your property

An extension of some physical structure, such as a building, driveway, fence, or tree over the property lines from an adjoining property. (off sides)

Title Producers

Any employee of a title insurer or title agency performing any of the following: Sales, solicitation or negotiations of a title insurance policy or closing protection letter.Calculations of premiums for a title insurance policy or closing protection letter Establish, calculate, or negotiate title charges conduct title search or examinations Execute title insurance policies, commitments or binders or endorsements handle escrows, settlements or closings

Paying Commissions

Commissions may be paid for the referral of title business, so long as the person or business receiving the commission is a licensed insurance producer. The underwriter is willing to pay over the majority of the title insurance premium as a commission to the agent because it's the agent who handles nearly all of the title underwriting duties in addition to taking on most of the liability.

Quitclaim Deed - Deeding interest to the other party

Conveys to the grantee and the grantee's heirs and assigns in fee all of the legal or equitable rights the grantor has in the property that existed at the time of the conveyance. It's a deed operating as a release; intended to pass any title interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title in the grantor.

AGENCY

Each title agency must designate an individual as a qualified principal, who as a condition of licensure must successfully pass the qualified producer examination. Applies to title agents licensed after January 1, 2008.

Endorsement - Additional Coverage

Extra coverage you can purchase, for example if you get coverage for an unrecorded leases or easement. A form issued by the insurere at the request of the insured that changes terms or items in and issued policy or commitment

Producers license

Good for two years Cost $100 per license If lapses, may renew or reinstate within 12 months of expiration and pay $25 fine Must complete 8 hours of CE per year

Terms, conditions and stipulations - Appendix B: outlines on policy

Governing language of a title policy. Examples: Terms: Policy will provide specific definitions, such as insured or land. Conditions and stipulations: specifically listed in the policy and sets our the requirements form submitting a claim, areas of protection and duties of the insured and the insurance company under the policy

Simultaneous Issue - When the agency has to write several polices

If a buyer's opts to purchase insurance on the day of closing; he will receive a discount on the lender's policy.

Independent Administration - Filing inventory of estates assets without court administration

If a person dies testate and the will instructs for independent administration, a personal rep or executor will be appointed and approved by the court, and this person may dispose of the estates property as he or she sees fit, without court approval. In an intestate case, the personal rep must be approved by all of the heirs but once approved, may dispose of the property as they see fit

No Administration -

If no probate case i opened within 12 months of the date of death, heirs may petition the court for a determination of heirship, which may then be recorded in the land records to convey title to those heirs

Underwriter - determins company's risk

In charge of determing the company's "risk" in issuing a policy

Insuring Clause - Sets out risk assumed by insuerer

In the ALTA policy form, there is no specific insuring clause, but instead is enumerated in each of the covered risks

Chain of Title - The passing from one to another

Legally defined as the official record of ownership of a property

Requirements - Things needing done before title can be complete

Items that must be met in order for title policy to be issued

Exception - a burden on sellers property

Items that will be insured

Title Defect - Circumstance that hinders the verification of title

Legal Claim or circumstances that hinders the verification of the title and identification of the true owner of a real property.

Internal Revenue Liens - didn't pay the IRS, good for 10 years

Liens filed for non-payment of federal taxes

State Tax Liens - Didn't pay state taxes, good for 10 years

Liens filed for non-payment of state taxes

Covenant Deed - limits use of something specific on property

May be contained within other deed types, such as conveyances, and establishes restrictive covenants upon the land, such as a covenant to limit the use of property to residential or establish an easement or right of way. Covenant deeds may be specific as with an easement deed or right of way deed

Forfeiture - loss of property without compensation

May refer to different takings; the first by operation of recorded restrictions and conditions; the second a taking by governmental entity, ex. when the individual has committed a crime. Property is commonly forfeited under crimes related to drug trafficking and racketeering activity, but it is not specifically limited to those crimes

Title Producer

Means a person who is authorized to perform, on behalf of a title insurer, the following acts in conjunction with the issuance of a title insurance commitment or policy covering real or personal property situated in the District of Columbia.

Power of Sale foreclosures - lender can foreclose without court oversight

Mo permits foreclosure under a power of sale clause. All mortgages of real property with powers of sale in the mortgagee or secured party, or his personal representatives in pursuance of the provision of the mortgages or security agreements shall be valid and binding by the laws of the state upon the mortgagors and debtors, and all persons claiming under them and shall forever foreclose all right and equity of redemption of the property sold.

Chattel

Personal Property

Adverse Possession

Physical possession of land inconsistent with the rights of the owner

Appurtenances

Rights that come with the title of the land itself. Things such as roadways and utility lines.

Loan Policy - Policy when you lease property

Policy of title insurance issued to a mortgagee and insures the mortgagee's deed of trust on the land over risks described on the policy. The loan policy specifically insure the lenders deed of trust is perfected in a certain lien position (usually first) and that the lender will hold clear title (subject to exceptions) if the lender becomes the title holder thorough foreclosure or similar action

Owner's Policy - Policy when you purchase

Policy of title insurance issued to the fee simple owner of a property, which provides the insured coverage over risks described on the policy

Negative Easement

Property owner promise they will not use all or part of the property for some specific purpose

escheat

Property reverts to the state when someone dies leaving no will and no heirs. unclaimed funds could be moniesheld in escrow or outstanding checks

Recording - notice to the world

Property that includes land and buildings, and anything affixed to the land

Commitments - Document insurer discloses in a transaction that affects the property

Schedule A includes legal descriptions, buyer's name, sellers name and the amount being insured. Schedule B includes requirements and exceptions

Schedule A of the Policy

Schedule A sets forth the specific information on the title and policy, such as the date of policy, the amount of insurance, the insured, the legal description of the land insured by the policy and the estate insured, such as fee simple or leasehold. Schedule A must be attached to the policy in order for the policy to be valid.

Schedule B of the Policy

Schedule B lists the various exceptions to the title that the title company found when it performed its title search. Common exceptions would be things such as prior unreleased mortgages on the property, easements, taxes, restrictions on the use of the property, and any other limitations on the title such as homestead rights or survey issues if no survey has been performed. By listing various items as exceptions, the title company is telling the insured that these items are not covered by the title policy, and that the title company will not pay a claim or defend against a claim based on these excepted items.

Closing Protection Letter - Insurance on Title Policy

Sometimes referred to as the insured closing letter, it is a document issued by the insurance underwriter that sets forth an underwriters responsibility for negligence, fraud and errors in closings performed by agents and approved attourneys

Exclusions - Something being used not related to the parcel of land

Specifically set out matters that the policy will not protect against

Tenants in Common - Passed to surviving heirs

Tenants do not have right of survivor ship. If a tenant dies, ownership is passed to the surviving heirs.

conveyance

The act of transferring an ownership interest in a property from one party to another. Conveyance also refers to the written instrument, such as a deed or lease, that transfers the legal title of a property from the seller to the buyer.

Closing/Settlement - The final Exchange

The official transfer of the property ownership from the seller to the home and buyer

Subrogee - Assumes legal right to attempt to collect a claim of another in return for paying others expenses or debts which they claim against a 3rd party

The party which has the legal right to attempt to collect a claim of another (subrogor) in exchange for paying the other expenses or debts claimed against a 3rd party

Subrogation - Recover amount of claim paid by insurance carrier

The substitution of one person in the place of another with reference to a lawful claim or right. it can occur in insurance matters when an insurance company covers it insured client for injuries and losses they sure the party which the insured person contends caused the damages to the property or person.

Covered Risks of the Policy

This section lists what kinds of risks the policy insures against. However, the policy makes it clear that the insurance of the listed risks are subject to (1) the Exclusions listed following the Covered Risks, (2) any exceptions listed in Schedule B, and (3) the Conditions. In the most current ALTA Owner's policy, there are ten covered risks listed in the policy. Some of the most important covered risks are: 1. the risk that someone else owns your property 2. that there is some defect or encumbrance on your title caused by fraud or forgery 3. any liens for real estate taxes or assessments that are due but unpaid 4. that your title is unmarketable, that is, you are unable to sell your property to a purchaser because of a title defect 5. right of access to and from your land. Review your owner's policy or ask your title agent about the covered risks included in your policy.

Conditions of the Policy

This section outlines the relationship between the insured and the title company. Paragraph 1 contains the definitions of certain terms used in the policy. Terms such as "Insured," "Insured Claimant," "Knowledge" and "Public Records" are defined so as to eliminate any ambiguity. There are several different paragraphs setting out how a claim under the policy is handled, including how to provide notice of a claim, what is required to prove loss, and the requirement that the insured must cooperate with the title company in the handling of the claim. Click here to learn how to file a claim. The Conditions describe the rights of the title company to pay or settle the claim, and the determination, extent and limitation of liability. Most policies also contain a paragraph that allows the insured or the title company to demand arbitration if the amount is under $2 million.

Title Commitments

Title company must deliver a written notice to the buyer informing them that they will not receive any protection under the loan policy and that they will have the option to purchase within 60 days of closing

Continuing Education

Under the new statutory provisions, title agents are now required to complete eight hours of title-insurance-related continuing education courses by their biennial licensing renewal date. All qualifying continuing education courses should be approved by the Department prior to agent enrollment

Liens - Voluntary/Involutary

Voluntary: I signed up for a loan so i chose to have a lien. Involuntary: I didn't pay my taxes, child support or for a settlement from an accident so i involuntarily have a lien.

HUD-1 Settlement Statement - agreement housing and urban development has approved

a standard form in use in the United States of America which is used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate. The borrower has the right to inspect the HUD-1 one day prior to day of settlement. The form is filled out by the settlement agent who will conduct the settlement.

Forfeiture of Title - giving up property rather than it being taken

common penalty for the violation of conditions or restrictions imposed by the seller upon the buyer in a deed or other property document. For example, a deed may be granted upon the condition that if liquor is sold on the land, the title to the land will be forfeited by the buyer (or some later owner) and will revert to the seller

Gross easement

does not benefit another tract of realty i.e. gas pipelines

Supervised Administration - All of dependents estate under court administartion

in a testate or intestate case, the appointed personal representative must get court approval prior to disposing or conveying the estates property

Meridian - follows state lines

irregular in size and shape

land locked

land with no connection to a public street or road, or not legal right of access to a public street or road

Escrow- funds held until conditions met

money or securities or documents held by a third party until conditions of a contract are met

Beneficiary Deed - deed upon death

the intestate is the grantee-beneficiary is subject to all conveyances, assignments, contracts, mortgages, liens and security pledges made by the owner of record during their lifetime. a beneficiary deed is void if it is recorded after the death of the grantor or the grantee-beneficiary dies before the grantor. if a subsequent beneficiary deed is recorded in the land records, the prior beneficiary deed becomes void, and the new one is the effective deed

Probate - Court determines who is entitled to assets of person who died, with will

the legal manner of settling the estate of a deceased or incapacitated person. There are several types of probate. conveyance out of probate may come through personal representatives deed, executors deed, conservators deed or the probate case itself may be recorded in the land records to establish title as set out in the probate judgement

Judicial Foreclosure - Foreclosures that go through court

the lender may file a petition in the office of the circuit court against the borrower and the tenants. the petition states the nature of the mortgage and requests the court to render judgement for amount of the debt, to foreclose the equality of redemption (preventing the borrower from recovering the property by paying the mortgage) and to order the property sold to satisfy the amount due. Such a lawsuit will be handled in the same manner as other civil lawsuits. the borrower may be served in person or by constructive notice thorough publication if personal service efforts proves to be fruitful

Affirmitave Easement

the right to use property belonging to another for a specific reason

conveyances

the transfer of title to land from one party to another

Mechanics lien - securing priority of payment for work preformed

there is a 6 month period to file the notice, followed by a 6 month period to enforce

Note - Term in deeds defining that terms are understood

unilateral agreement containing an express and absolute promise of the signer to pay to a named person, or order, or bearer, a definite sum of money at a specified date or on demand. Usually provides for interest and concerning real property, is secured by a mortgage or a trust deed