Louisiana Title Insurance EXAM

The renewal fee for a Louisiana producer license is

$50

Sam's appointment to sell insurance for XYZ insurance Company has been terminated by the company after the company found evidence Sam committed Fraud. XYZ has how many days to notify the Insurance Department of the termination

15 days

The requirements to get a resident Louisiana insurance producer's license include

18 years of age Pass the state exam Live or work in Louisiana

John became disabled and cannot conduct his insurance business. His legally appointed representative may get a temporary license to handle the business for him for up to

180 days

A producer's license for property and casualty requires how many hours of CE every renewal period

24 hours

After how many days notice after a buyer's default in payments may a Bond for Deed be cancelled?

45 Days

The Insurance Department reviews the files of insurance companies at least every how many years

5 years

How many acres are in a section

640 acres

What is not a characteristic of an insurable risk

Adverse Selection

Subdivision regulations (private deed restrictions) may be modified by those affected within what time period

After 10 years if both (A) owners representing 2/3 of the land and (B) 2/3 of the owners of the land agree

A legal contract that exchanges unequal values between parties is (the obligation depends on an uncertain event)

Aleatory contract

An insurance company formed outside of the United States is called an

Alien

Has more than one meaning and is usually written in favor of the entity creating the contract

Ambiguity

An offer that specifies no time for acceptance or if the offeror has not manifested an intent to give the offeree a delay, the offer may

Be revoked before it is accepted

A contract to sell real property that required the purchase price to be paid in installments and title is to be delivered to the buyer only after a stipulated sum has been paid or the term is met

Bond for Deed

The most common method to manage risk is to

Buy insurance

In Louisiana, the closest term to consideration is

Cause

Held by two or more individuals

Co-Ownership

What does not required to perfect a sale in Louisiana

Constructive notice of the sale (making it public)

The Fair Credit Reporting Act established procedures to protect

Consumers

The Rocket Insurance Corporation offers insurance policies on standard pre-printed forms. They do not negotiate the wording on the contract. If someone's application is approved, that person will receive the same standard contract as anyone else insured by the Rocket Insurance Corporation. (take it or leave it/no negotiations) This type of contract is referred to as a

Contract of Adhesion

The violent Crime Control and Law Enforcement Act requires who to get permission from the Commissioner before they can get an insurance license

Convicted felons

Fraudulent insurance acts include

Diverting money from an insurer Giving false information to the Commissioner Knowingly selling policies for a bankrupt insurance company

For a lessee to get a security deposit back, he must:

Do nothing, the lessor is required to return the deposit within 30 days of the end of the lease

The donation of property while living is called

Donation Inter Vivos

The right held by one party to use the land of another party for a particular purpose is better known as an

Easement

A charge on one estate for the benefit of another is called an

Easement appurtenant

Characteristics of land that give that land value are called

Economic Characteristics

An illegal extension of a building or some other improvement beyond the land of one owner and onto the land of an adjacent owner is called an

Encroachement

A charge, claim, or liability that attached to and is binding on real estates is called an

Encumbrance

What is the legal term for the process used to prevent someone from taking back a right that they have previously waived

Estoppel

Which of the following is a reason for suspension or revocation of a producer's license by the Commissioner

Failing to pay child support

The highest and best type of interest in real estate recognized by law is

Fee Simple Absolute

A foreclosure may be followed by a deficiency judgement only if there is a

Foreclosure with appraisement

The marketing system that gives a business owner an exclusive territory to represent one insurance company

General Agency

When one party is obligated for the benefit of the other, but receives no return advantage this is called a

Gratuitous contract

The standard method of measuring residential buildings is to determine the...

Gross Living Area

The client hands an initial premium check to the producer and expects the producer to forward the money to the insurer for processing. Even though his contract did not state that he must pay for the postage to forward the money to the insurer, his actions are representing what type of authority

Implied

To put back where it was before (to make whole again)

Indemity

An offer with a termination date for the offer in Louisiana is said to be

Irrevocable

An offer that specifies a time for acceptance is

Irrevocable during that time

When Land is expropriated by the state, the landowner may expect compensation as:

Just compensations as well as other expenses such as moving

Buying subject to a mortgage

Keeps the seller personally liable for the loan, although it remains with the property after the sale

Elements of a contract

Legal importance consideration competent parties

A seller recently received $40,000 for a house worth $100,000. He would have 1 year to claim:

Lesion Beyond Moiety

A buyer who has put up $10,000 earnest money on a sales contract for a $200,000 property decides to default. The seller may keep the $10,000 as:

Liquidated damages

The federal law says that the federal government can only regulate insurance companies to the extent they are not regulated by state law is

McCarran-Ferguson Act

A lien that protects the interest of people who improve real estate by labor, skill, or materials under contract with the owner is called a

Mechanic's Lien

Three types of legal descriptions

Metes and bounds government rectangular system Lot, block, and subdivision plats

A dishonest act or fraud would be considered a

Moral hazard

How are easements created

Necessity Mutual agreement Implication

When a contract is an earnest money contract

Neither party can sue for specific performance

If a contract is an earnest money contract then

Neither party can sue for specific performance or other damages

A farm lease that has expired is presumed to have been continued for another year if the tenant holds over without opposition for how long

One month

When each party obtains an advantage in exchange for his obligation this is called an

Onerous Contract

Fee Simple Def

Ownership that can be extinguished, annulled, or revoked on the occurrence or non-occurrence of a designated event

Which of the following below make up the Physical Land Characteristics

Permanence Uniqueness Immobility

All persons have legal capacity to contract except

Persons denied of reason at the time of contract Interdicts Unemancipated minors

Examples of hazard as is relates to the insurance industry

Physical hazards Moral Hazards Morale Hazards

A vendor who wishes to keep a life interest and convey the remainder to a relative may best do this by

Prepare a conveyance and reserve the right of usufruct

If a property is sold by the lessor during the term of the lease, the deposit should be turned over to the

Purchaser, a tenant is can not sue the purchaser for the deposit if they go bankrupt

A column of townships running north and south is called a

Range

Lack of legal capacity makes the contract

Relatively Null

A landowner can retain and keep ownership when selling their land to a new buyer and retain

Subsurface, vertical air, or surface rights

What are the requirements to perfect a sale in Louisiana

The Price What is being sold Consent of the parties

The act of Redhibition is not available if

The defects were declared to the buyer before or at the time of the sale If the defects were apparent or could have been discovered by reasonable inspection The buyer knew of the defects

The dominant tenement in an easement appurtenant is when

The land owner that benefits from the easement

An undivided interest in real property is best defined in Louisiana Civil Law as

The property is owned by more than one person who share the same thing

Gross Living Area

Total area under one roof;

If two or more persons own the same piece of property, each has an undivided share, this is referred to as an

Undivided Interest

A contract in which the party who accepts an obligation of the other does not assume a reciprocal obligation is called an (nothing in return)

Unilateral Contract

Upon death of a spouse, the surviving spouse must be given

Usufruct over the community property

The buyer in a contract is called the

Vendee

The seller in a contract is called the

Vendor

A right granted to a seller for the unpaid sales price is called the

Vendor's privilege

Acceptance of an irrevocable offer under

When the offer is signed and received by the offeror

How is personal property transferred in a real estate transaction

a Bill of Sale

Barbara lives in Mississippi, but works in an insurance office that is located in Louisiana and sell Life and Health Insurance. At a minimum she needs

a Louisiana resident life, Health , and Accident producer's license

Personal property that has been converted to real property by being permanently affixed or attached to the land or building

a fixture

Has indeterminable length, such as those existing for a lifetime or forever

a freehold estate

A servitude requiring a property owner to maintain and not prevent the natural flow of water across his property is an example of

a natural predial servitude

A charge on one property for the benefit of another property is

a predial servitude

A commercial freezer is an example of what that has been placed for business purposes

a trade fixture

The type of authority indicated by one's actions is called

apparent

When the performance of the obligation of each party is correlative to the performance of the other this is called a

commutative contract

Sharing part of the risk of a specific life insurance policy written by another insurance company is a practice called

facultative reinsurance

Land is described as

flat and/or vertically

What makes up the definition of real estate

house fence and shed land

In most states, what is considered when ownership is held entirely by one person or corporation is known as ownership:

in Severalty

The four basic concepts to distinguish a tenancy in common from other types of co-ownership are:

individual interest the right of conveyance the right of inheritance the right of partition

Death of a usufructuary, or if the object of the usufruct is destroyed, will have what effect on a usufruct

it will terminate

Consent of both parties to form a contract is established through

offer and acceptance

What is considered a voluntary lien

one that is created willingly

A nonfarm lease that has expired s presumed to have been continued for another month if the tenant holds over without opposition for how long

one week, must give 10 days notice to vacate

A lawsuit base don lesion beyond moiety must be filed within

one year

What type of item is considered personal property and is movable

table and chairs

what does not prevent an insurer from adverse selection

underwriting every risk

According to Louisiana law, an insurance producer shall not pay, directly or indirectly, any commission, service fee, brokerage, or other valuable consideration to any person or entity for selling, soliciting, or negotiating insurance in this state unless such person or entity holds a

valid license as required by law

Giving up a right or privilege is called

waiver