Missouri Title Insurance Producer Exam Affiliated Business Defined - any portion of a title agency's business written in this state that was referred to it by a producer of title insurance business or by an associate of the producer, where the producer or associate, or both, have a financial interest in the title agency Affirmative Easement - One in which the easement holder has a right to do something on another's land Agency - it is unlawful for any person to transact the business of title insurance unless they are authorized as a title insurer, title agency or title agent and duly licensed business entity insurance producer; it is unlawful for any title insurer to contact with any person to act in the capacity of a title agency if that person is not duly licensed ALTA Forms - The American Land Title Association created and distributed several uniform forms for use across the entire industry, which title insurers can choose to use; each -- must be submitted by the individual insurer to the Department for approval. These -- inclu de Policies & Endorsements Alta Leasehold Endorsements - To an Owner's or Loan Policy - the ALTA 13 & 13.1. These endorsements allow for the conversion of the Owner's or Loan Policy to Leasehold owner's or Leasehold Loan without requiring a separate jacket form Amount of Insurance - The amount stated in Schedule A, as may be increased or decreased by endorsement to the policy Annual On -Site Reviews - Each title insurer shall conduct an on -site review of the underwriting, claims, and escrow practices of each of its title agents at least once per year. Records of the audit must be provided to the director after the review, must be maintained for at least four years and shall include at a minimum: - review of the agency contract - statement of financial condition certified under oath - Review of policies pertaining to affiliated business arrangements and regulatory compliance - reconciliation of orders with commitments, title searches, title policies, and collection of premiums - Review of the agent's procedures for tracking issued commitments - Review of the practices to cancel commitments on transactions that do not close - Review of the procedures for follow -up after closing to track status of outstanding conditions required for timely issuance of policies - review of procedures for voiding policies - review of the tracking of open escrow, security, settlement or closing files - review of issued policy reports to the title insurer by the title agency or agent - review of any files awaiting policy issuance that includes a determination of the average length of time between closing and the issuance of the title policy - a review of a three -way reconciliation of bank balance, book balance and escrow trial balance for each individual escrow bank account Appurtenant Right - Transferred with real estate, such as a roadway. This type of an easement is a burden on the land on which it lies as it may reduce the value of the land Attachments - Document Formatting Requirements - - No -- stapled or otherwise affixed to any page is allowed except as necessary to evidence compliance with statutory requirements (firmly attached label with bar code or return address is acceptable). Examples of the are certifications of mailing and publ ication notices Beneficiary Deed - The interest of 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 -- is void if it is recorded after the death of the grantor. If a sub sequent -- is recorded in the land records, the prior -- is automatically revoked and the new -- is the effective deed. a -- does not vest until the death of the grantor Bounds - Refers to a more general boundary description Boycott and Coercion - entering into any agreement to commit, or by any concerted action committing any act of boycott, coercion or intimidation resulting in or tending to result in an unreasonable restraint of, or monopoly in, the business of insurance is prohibited Cashier's Check - A check, however labeled, drawn on the financial institution, which is signed only by an officer or employee of such institution, is a direct obligation of such institution, and is provided to a customer of such institution or acquired from such institutio n for remittance purposes Cease and Desist Orders - If the director determines based upon solid evidence that a person or company has engaged in a practice violating state insurance laws and regulations, they may issue: - a cease and desist order to stop the person/company from engaging in the act, practice, omission or course of business - a curative order directing the person to take action necessary to comply with insurance laws - order a civil penalty The director must hold a hearing as to their orders so that they may enforce them; the final order issued may include civil penalties or forfeitures in addition to the cease and desist order. They have the authority to issue administrative consent orders i f they believe it to bi in the best interest of the public persons named in the orders have the ability to request judicial review and appeals of these administrative orders the penalty of willful violation of cease and desist orders is a fine up to $100,000 and/or up to imprisonment of ten years, or both Certified Funds - United States currency, funds conveyed by a cashier's check, certified check, teller's check, as defined in Federal Reserve Regulations CC, or wire transfers, including written advice from a financial institution that collected funds have been credited to the settlement agent's account Chain of Title - The history of passing of title ownership from the present owner back to the original owner. They include notations of deeds, distribution from estates, certificates of death, foreclosures, quiet title, and other recorded transfers of title. Before purchas ing property, the purchaser will usually hire a title company to search out the -- and provide a report. In many real estate transactions, insurance companies issue title insurance based upon the -- to the property when it is transferred. Child Support Lien - Child support is court -ordered funds to be paid by one parent to the custodial parent of a minor child, resulting from divorce, separation or paternity suits. Said support generally is ordered to continue until the child reaches 18 years, graduates from hi gh school, is emancipated, or dies. The amount and continuation of support may be changed by the court upon application of either party depending on the proved change of circumstance of the parents or child. Child support should not be confused with alimon y (spousal support) which is for the ex -spouse's support. Child support is not
