Is the rate for issuing a Closing Protection Letter for a seller required to be filed as a separate rate?

The correct understanding is that the rate for issuing a Closing Protection Letter specifically for a seller must be filed as a separate rate. This is due to regulatory requirements that ensure transparency and clarity in the costs associated with title insurance transactions. The Closing Protection Letter serves as a guarantee from a title insurer to protect the parties in real estate transactions against certain losses that may occur due to errors or omissions by the closing agent.

Filing the rate separately helps ensure that both parties involved in the transaction—namely the sellers and buyers—are well-informed about the costs associated with the Closing Protection Letter. This requirement is designed to promote fair practices within the title insurance industry and enable consumers to better understand the fees they may encounter during a real estate transaction.

Therefore, it is mandated that the rate for a Closing Protection Letter for sellers be distinctly filed, facilitating transparency and compliance with state regulations governing title insurance practices.