HB267 Summary

• Title insurers may issue closing or settlement protection to parties in real estate transactions where a title insurance policy will be issued, subject to Commissioner of Insurance approval of forms.

• Closing protection covers only theft or misappropriation of settlement funds and failure to comply with written closing instructions, but only to the extent these acts relate to title status, mortgage lien validity, enforceability, or priority.

• Minimum fees of $25 per party for buyers or lenders receiving a title policy and $50 per party for sellers not receiving a loan policy must be submitted to and approved by the Commissioner.

• Title insurers must provide written notice to parties before closing disclosing the availability of closing protection, its fee, and obtain written acknowledgment of whether parties desire the coverage; omissions may be cured by certified letter prior to notice of a claim.

• Title insurers are prohibited from providing any other coverage purporting to indemnify against improper acts or omissions related to settlement or closing services.