Must title insurers file the rate they will charge for the issuance of Closing Protection Letters with the Director of Insurance?

Title insurers are indeed required to file the rates they charge for the issuance of Closing Protection Letters (CPLs) with the Director of Insurance in Missouri. This requirement is in place to ensure that the rates are regulated and transparent, which serves to protect consumers and maintain fairness within the insurance market. By filing rates, the Director of Insurance can oversee and determine whether the charges are justifiable and consistent with the state’s regulations.

The purpose of a Closing Protection Letter is to offer additional assurance to parties involved in a real estate transaction that their funds and documents will be handled correctly by the title agent or company. Allowing for oversight of the rates associated with these letters helps to ensure that consumers are treated fairly and that the pricing reflects the risks associated with the title insurance process.