- January 22, 2008
- All Arkansas Issuing Offices
- Arkansas Act 684 Requirements - Insured Closing Letters
The new Title Insurance Act 684 of 2007, and associated rules 87 and 88, which went into effect January 1, 2008 (please refer to Stewart Bulletins AR2007001 and AR2008001); contain one very important aspect of the new law we would like to bring to your attention. Section 14 of Rule 87, which deals with insured closing letters, requires an insured closing letter to be offered to the lender and buyer on each and every transaction you close. There will be no more blanket insured closing letters.You may, if you choose, also offer this coverage to the seller.
If it is a cash transaction then you should offer this coverage to the buyer. If the buyer declines, we would recommend that you have something in writing in your escrow file where they sign off declining this coverage. There will be a $25.00 charge for each letter issued. You should show this charge on your HUD and collect it at closing. Please understand that the lender and buyer may be shown on the same letter. You will be billed on a monthly basis for each letter issued. As you will note, the full $25.00 must be remitted to the Company and cannot be split with the Agent.
You may access the Act and Rules at www.insurance.arkansas.gov, which is the Department of Insurance website; from there, go to the Legal Division and the information can be accessed through the Insurance Law Legal Division heading.
Please feel free to call Kim Majors at 1-800-530-8237 for any additional information you may require.
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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.