- May 11, 2015
- All Rhode Island Issuing Offices
- UNDERWRITING - Insured Closing Protection Letter Fee Issuing Offices
The State of Rhode Island Insurance Commissioner has approved for use, effective July 1, 2015, a new CPL form, and CPL fee to be charged of $25.00.
The new CPL FORM filed and approved for issuance covering property located in the State of Rhode Island now available is:
"RI1/2015 RI Single Transaction CPL" - This form shall be generated for issuance to lender(s), buyer(s) or borrower(s) as requested.
CPL FEE AND REPORTING/REMITTANCE
A Closing Protection Letter ("CPL") is available to the proposed insured parties of the transaction upon request, provided the Underwriter or its title insurance agent issues a preliminary report, binder, or title insurance policy. Such CPL shall be provided in connection with the issuance of any loan policy insuring a lender's interest in residential property intended for residential occupancy containing four (4) or less units. A CPL may be provided in connection with the issuance of a policy issued in any other type of residential or commercial transaction. The request 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 borrowers(s) in connection with the real property transaction giving rise to the issuance of the CPL. The fee to be charged shall be $25 per transaction. The entire amount of the CPL 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 or HELOC by a lender other than the primary lender, an additional fee of $25 shall be charged for and remitted to Underwriter.
EXCEPTIONS AND EXEMPTIONS
There is no fee for letters where a transaction does not close or where a letter 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 Rhode Island 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.