- June 29, 2015
- All Idaho Issuing Offices
- RATES AND/OR FORMS UPDATE - Closing Protection Letter (CPL FORM)
Commencing July 1, 2015, involving transactions covering property located in the State of Idaho, there will be one (1) form of Closing Protection Letter (“CPL”) available for issuance as required in accordance with changes in ID law (HB No. 277) amending and adding those certain Sections, Idaho Code related to the form, rate, and issuance of closing or settlement protection.
The form of CPL is now filed with the Idaho Department of Insurance and designed to be issued specific to a single real estate transaction. The CPL is available as an option to the proposed insured parties of the transaction in which a title insurance policy or title insurance policies will be issued by or on behalf of Underwriter. This protection is apart and separate from the coverage provided under the title insurance policy. The election for a CPL must be made prior to or at the time of closing. The closing protection is available to the lender(s), buyer(s) or borrower(s) in connection with the real property transaction giving rise to the issuance of the CPL.
Effective July 1, 2015, the new form of CPL as filed and required for issuance covering property located in the State of Idaho is as follows:
- ID1 / 2015 IDAHO SINGLE TRANSACTION CPL FORM - This form is available for issuance to the lender(s), buyer(s) or borrower(s) in connection with the real property transaction giving rise to the issuance of the CPL.
CPL RATES FOR PREMIUM CHARGE AND REPORTING/REMITTANCE
A rate shall be charged for each transaction that includes closing protection coverage and shall not be subject to any agreement requiring a division of rates or premiums collected on behalf of Underwriter. The single rate to be charged shall be $25 per transaction. The entire amount of the CPL rate, fee or charge shall be remitted to Underwriter for the additional risk it assumes when providing closing protection coverage. In the event of a second mortgage by a lender other than the primary lender, an additional rate of $25 shall be charged for and remitted to Underwriter.
EXCEPTIONS AND EXEMPTIONS
There is no fee or rate charged for CPLs where a transaction does not close or where a CPL is issued by mistake.
MODIFICATIONS TO CPL FORMS
Please forward all requests to (1) modify the closing protection coverage, or (2) reflect a different amount for a transaction that exceeds $10 million to ICLAdmin@stewart.com. Please note that all requests for closing protection coverage on transactions over $10 million must be accompanied by a completed "overlimits approval" form approved and executed by the local underwriter and/or senior underwriter.
Closing Protection Letters may be issued ONLY by use of the Stewart ICL Website: https://www.stewarticl.com. Closing Protection Letters may not be (1) modified, (2) prepared by an Issuing Agent on its Letterhead or in any other format, or (3) typed, computer generated, or signed by any agent.
The Stewart ICL Website has the most current Closing Protection Letters approved for issuance and maintains a record of all such CPLs issued.
The Stewart ICL Website generates the Closing Protection Letters only for current authorized policy issuing agents of Stewart Title Guaranty Company. The Closing Protection Letter is generated in HTML format, which is to be printed and then sent to the requesting party.
If you are currently utilizing StewartDocs or AIM+, please contact a Stewart technology representative to update your system with the new CPL fee at Stewart’s Customer Care Center, 888-526-3282.
Please do not hesitate to call on us if you encounter a problem requiring a solution or if you have a question. We are always happy to assist.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.