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TIPIC Exam Questions and Answers 2025.
1.Giving something of value in exchange to an insured to induce the purchase of an insurance policy is: a.) fraud b.) negligence c.) rebating d.) commingling: rebating 2.The blocked person's list of specially designated nationals is maintained by: a.) HUD b.) FDIC c.) Department of Treasury d.) CFPB: C - Department of Treasury 3.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
2 / 29 c.) uber rides d.) all of the above: D - All of The Above 4.Permissible promotional items used in marketing title insurance services include: a.) pens b.) calendars c.) mugs d.) all of the above: D - All of The Above 5.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: C - At Least 3 Days After Submitting a Loan Application 6.A producer may not knowingly offer, promise, or give any valuable consid- eration not specified in the policy, except for education materials, promotional materials, or articles of merchandise that cost no more than regardless
4 / 29 a.) $ b.) $ c.) $ d.) $50: D - $ 7.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: A.) Be at least 21 years of age 8.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: A - 3 business days before settlement 9.Pursuant to RESPA, the only thing of value that can be received by an affiliated business in a title insurance transaction is:
5 / 29 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: c.) a return on the ownership of the affiliate 10.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: C
- residential transactions involving 1-4 family units 11.Insurers must maintain for inspection by the Maryland Insurance Admin- istration: a.) copies of producer licensing applications b.) copies of insurance exams
7 / 29 a.) The Maryland Insurance Commission b.) The Attorney General's Office c.) The State Prosecutor d.) The county prosecutor where the prohibited act occurs: B.) The Attorney General's Office 15.Which of the following statements best describe insurance rates? a.) The regulatory objectives of insurance rating are that rates shall be ade- quate, 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.: A.) The regulatory objectives of insurance rating are that rates shall be adequate, not excessive, and not unfairly discriminatory. 16.The following is true regarding remote online notarizations: a.) It is not legal in Maryland b.) The law became effective January 1, 2020
8 / 29 c.) The law became effective January 1., 2021 d.) The law became effective October 1, 2020: D.) The law became effective October 1, 2020 17.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: B.) Will accommodate 2 documents and an addendum can be used for the remaining documents. 18.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: D - All of The Above
10 / 29 c.) the day of settlement d.) three days after settlement: c.) the day of settlement 22.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: c.) a buyer purchases an owner's and lender's policy 23.Which of the following statements is correct about the Insurance Commis- sioner: 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: d.) all of the above 24.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
11 / 29 b.) 10 years in prison and a $50,000 fine
13 / 29 a.) Mortgage payoffs b.) Total payment c.) 50% of the purchase price d.) 25% of the purchase price: b.) total payment 28.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: d.) all of the above 29.Unclaimed checks must be handled pursuant to: a.) the insurance contract b.) insurance law c.) Maryland's escheatment law d.) the insurance application: c.) Maryland's escheatment law
14 / 29 30.Maryland is a RATE file and use state. This means:
16 / 29 b.) if a stock company, they must have and maintained $750,000 paid-in capital stock c.) must receive an appointment from the commissioner d.) both A and B: d.) both A & B
- They must be organized as a stock company or a mutual insurance company
- if a stock company, they must have and maintained $750,000 paid-in capital stock 33.This relationship between a title insurance producer (TIP) and a title insur- ance producer independent contractor (TIPIC) can be described as: a.) a joint venture b.) controlled business association c.) employer and employee d.) principal and agent: d.) principal and agent 34.Express authority can be best described as: a.) written or oral b.) reasonably assumed by a third party c.) reasonably necessary to carry on the business of insurance d.) none of the above: a.) written or oral
17 / 29 35.The Maryland Affordable Housing Trust:
19 / 29 38.In Maryland, title insurance rates: a.) are competitive b.) must be filed with insurance commissioner c.) must be approved by the insurance commissioner d.) all of the above: d.) all of the above 39.A title agent can do business with a title producer as long as: a.) the title producer becomes licensed within 10 days of doing business b.) the title producer becomes licensed within 15 days of doing business c.) the title producer becomes licensed within 30 days of doing business d.) the title producer is licensed: d.) the title producer is licensed 40.The most common discount for a title policy reissue rate is: a.) 15 percent b.) 25 percent c.) 30 percent d.) 40 percent: d.) 40 percent 41.A title insurance producer that willingly and knowingly misappropriate trust money:
20 / 29 a.) is guilty of a felony b.) is not criminally guilty of breaking the law c.) is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 1 year or both d.) is subject to a felony and subject to a $500 fine: c.) is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 1 year or both 42.A person who bears a special relationship of trust and responsibility in an agency relationship: a.) fiduciary b.) agent c.) trustee d.) all of the above: d.) all of the above 43.How often must a producer send out a privacy notice to customers? a.) at time of application b.) never
