Which of the following is NOT a standard exception on a title commitment?

Prepare for the Alabama Title Insurance Test. Practice with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

The correct response identifies that the payment of the title premium from the insurer to the agent is not a standard exception found on a title commitment. In the context of title commitments, standard exceptions typically cover issues that may impact the title of the property being insured.

Standard exceptions include rights or claims of parties in possession, which addresses any rights held by individuals currently occupying the property. Encroachments and boundary line disputes relate to issues concerning property lines and the physical presence of structures or improvements that extend onto another's property, also critical for ensuring clear title. Similarly, taxes or special assessments can affect the title’s status and are commonly included in standard exceptions to inform the insured party of potential financial liabilities associated with the property.

On the other hand, the payment of title premium is an internal transaction related to the title insurance policy itself and does not relate to the tangible factors that could jeopardize the title. It pertains more to the administrative and financial operations of title insurance companies rather than concerns that typically affect the property title or ownership, thus making it the correct choice for what is not a standard exception on a title commitment.

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