CurrentAlabama Department of InsurancePolicy 2011-04

Bulletin No. 2011-04 — Closing or settlement protection compliance

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Governs requirements for Alabama-licensed title insurers offering closing or settlement protection under Ala. Code § 27-3-6.1 (2011); affects all Alabama-licensed title insurers and parties to covered transactions.

Policy Summary

PayerAlabama Department of Insurance

PolicyBulletin No. 2011-04 — Closing or settlement protection compliance

Policy CodePolicy 2011-04

Change Typeinformational

Effective DateSep 20, 2011

Next Review Date

Key ActionFile all title insurance forms, including closing or settlement protection, through SERFF and submit the fee to the office for approval.

SourceLink

POLICY UPDATE CHANGES

No material clinical or coverage changes in this revision.

All Alabama-licensed title insurersintended recipients

SERFFform & filing channel

May need actuarial supportfee justification

Written notice to each partynotice requirement

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CurrentAlabama Department of InsurancePolicy 2011-04

Bulletin No. 2011-04 — Closing or settlement protection compliance

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Sign up for Alabama Department of Insurance Policy 2011-04 alerts

Get alerted when Policy 2011-04 changes without checking for updates manually.

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Policy Summary

PayerAlabama Department of Insurance

PolicyBulletin No. 2011-04 — Closing or settlement protection compliance

Policy CodePolicy 2011-04

Change Typeinformational

Effective DateSep 20, 2011

Next Review Date

Key ActionFile all title insurance forms, including closing or settlement protection, through SERFF and submit the fee to the office for approval.

SourceLink

POLICY UPDATE CHANGES

No material clinical or coverage changes in this revision.

All Alabama-licensed title insurersintended recipients

SERFFform & filing channel

May need actuarial supportfee justification

Written notice to each partynotice requirement

Closing or Settlement Protection Requirements

Closing/Settlement Protection Requirements

Requirements and conditions under which closing or settlement protection may be offered:

All title insurance forms, including closing or settlement protection, must be filed through SERFF and submitted to the Department of Insurance for approval.

The fee charged for closing or settlement protection must be submitted to and approved by the Department; filings seeking fees above the statutory minimum must include sufficient actuarial support to justify the amount.

ALL of the following

A written statement or notice must be furnished to each party to the transaction (sellers, purchasers, and lenders).
Each party must express in the statement or notice a desire to buy or to decline closing or settlement protection.
The written statement or notice must be signed by each party.

If the statement or notice is not timely provided to a party, the omission may be cured by sending the statement or notice to the party's last known address by certified mail as provided in § 27-3-6.1(f).

The written statement or notice is required only in transactions in which title insurance is being provided; it is not required for a closing handled by an attorney when no title insurance is provided, even if the attorney is also a title insurance agent.

The statement or notice is required only when the lender has not requested closing or settlement protection; it is not required if the lender has requested such protection.

Filing, Fees, and Notices — Provider Responsibilities

Documentation Required

SERFF filing and fee approval required for forms and fees

All title insurance forms, including closing or settlement protection, must be filed through SERFF and submitted to the Department of Insurance for approval. The fee to be charged for closing or settlement protection must also be submitted to and approved by the Department; filings seeking fees above the statutory minimum must include sufficient actuarial support to justify the amount.

File all title insurance forms (including closing or settlement protection) through SERFF.
Submit the proposed fee for closing or settlement protection to the Department for approval.
If requesting a fee above the statutory minimum, include sufficient actuarial support with the filing.

Key Definitions

Closing or settlement protection

DefinitionClosing or settlement protection — protections provided in connection with real estate closings when title insurance is being provided (as addressed by Ala. Code § 27-3-6.1 and this bulletin).

When requiredRequired only in transactions in which title insurance is being provided; not required for closings handled by an attorney when no title insurance is provided.

Related statuteSubject to Ala. Code § 27-3-6.1 (2011) as implemented by Alabama Bulletin No. 2011-04.

Party / Purchaser (signing & notice duties)

DefinitionParty / Purchaser — each seller, purchaser, and lender to whom the written statement or notice must be furnished and signed when title insurance is being provided.

Notice requirement