New Illinois Public Act 96-1454 (Act), which makes changes to the Title Insurance Act, requires that the underwriter, and not the title insurance agent, issue all closing protection letters. Further, it requires that CPLs be issued not just to lenders, but also to buyers, sellers, and owners in a refinance. CPLs must be issued when either the title insurance agent or the title underwriter conducts the closing.
- For those parties to a transaction who are obtaining a policy of title insurance, the charge is $25 for the closing protection letter.
- For those parties to a transaction who are not obtaining a policy of title insurance, the charge is $50 for the closing protection letter.
Thus on a buy/sell transaction with financing where Owner and Loan Policies will issue, the seller will pay $50, the lender $25 and the buyer $25. The Act requires agents to collect and remit the premium to the underwriter promptly.