Bulletin: ME2014002

Date:
December 16, 2014
To:
All Maine Issuing Offices
RE:
UNDERWRITING - New Closing Protection Letter ("CPL") and CPL Charge for Maine

Dear Associates:

The State of Maine Bureau of Insurance has approved for use effective January 6, 2015, a new CPL form and CPL charge.

The new CPL form filed and approved for issuance covering property located in the State of Maine is referenced as follows:

•       “ME1/2014 ME Single Transaction CPL” 

The following addendum to the Stewart rate manual in Maine has been approved to establish the charges for the CPL:

CLOSING PROTECTION LETTER

A Closing Protection Letter is available as an option to the parties of the transaction. This protection is apart and separate from the coverage provided under the title insurance policy; however, title insurance must be purchased as a condition for a closing protection letter to become an available option. The election for a closing protection letter must be made prior to or at the time of closing. The protection is available to the purchaser or lender, and a fee of $25 per loan is payable in full to the Underwriter at closing for the additional risk it assumes when providing a closing protection letter. In the event the closing does not take place, there will be no charge assessed for a Closing Protection Letter.

Please note that pursuant to 24-A MRSA §3202, the entire CPL fee of $25 is payable to Stewart. The law does not allow us to subject the CPL fee to your customary split applicable to premiums and endorsements.

REPORTING/REMITTANCE

Please report premium and fees on a monthly basis. CPL fees may be remitted with policy premium as one check along with an itemized breakdown of the premium and CPL fees and/or copies of all policies and CPLs. This will assist our policy department with promptly processing all premiums. Please contact your Stewart Agency Services Representative if you have any questions on how to remit fees to the Company. 

MODIFICATIONS TO CPL FORMS

Please forward all requests to (1) modify the closing protection coverage document or (2) reflect a different amount for a transaction that exceeds $5 million to: ICLAdmin@stewart.com. Please note that all requests for closing protection coverage documents on transactions over $5 million must be accompanied by a completed "overlimits approval" form approved and executed by the local underwriter.

Closing Protection Coverage documents may be issued ONLY by use of the Stewart ICL Website: https://www.stewarticl.com. Closing Protection Coverage documents 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 an Issuing Agent. If you have questions about completing the CPL form template on the website, please contact ICLAdmin@stewart.com.

The Stewart ICL Website has the most recent Closing Protection Coverage documents approved for issuance and maintains a record of the Closing Protection Coverage documents issued.

The Stewart ICL Website generates the Closing Protection Coverage documents only for current authorized Issuing Agents. The Closing Protection Coverage document is generated in HTML format, which is to be printed and then sent to the requesting party.

Please contact your software vendor to ensure that your system is updated with the new rates. AIM users should contact PropertyInfo Customer Care to have the rate changes implemented in their AIM systems.

If you have any questions regarding this or any Stewart Bulletin, please contact:

Gary H. Bernier, Esq.
Stewart Title Guaranty Company
165A South River Road
Bedford, New Hampshire 03110
1-866-899-7987
1-866-894-6853 fax
gbernier@stewart.com

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 http://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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None