The Alaska Division of Insurance issued Bulletin B 24-05, clarifying the filing requirements of a closing protection letter (CPL) under state law.
The bulletin begins, “The division of insurance has received inquiries from the title insurance industry seeking clarification on the filing requirement of a closing protection letter (CPL) in the business of title insurance, as defined in Alaska Statute §§ 21.66.480(2)(A) & (B).”
It notes, “pursuant to Alaska Statute §§ 21.66.450(a) & (b), the division now requires a CPL to be filed as closing protection to an insured if the title insurer issues a commitment or title insurance policy.”
It notes that rates and forms must be filed with the division’s property and casualty section. Title insurers are permitted to charge a fee for this coverage, but it must be approved by the division.
“Filing of CPLs is effective April 12,” the bulletin states. “Any new title insurance policy which includes a CPL issued after June 1 must comply with this bulletin. It is the responsibility of the title insurer to notify their agents of the subject matter of this bulletin and ensure compliance therewith.”