Louisiana Insurance Rating Commission Approves Premium for Closing Protection Coverage

Louisiana Title Statistical Services Organization, Inc. (LATSSOI) announces the introduction of insured closing protection related to real estate closings.

Baton Rouge, LA (PRWEB) July 19, 2004 -- Louisiana Title Statistical Services Organization, Inc. (LATSSOI) announces the introduction of insured closing protection related to real estate closings. The Louisiana Department of Insurance has reviewed and approved closing protection coverage. The closing protection coverage, now available to owners of real property or to lenders with a mortgage on real property, is consistent with the protection provided by the American Land Title Associations (ALTA) Regulatory Letter.

This state action is consistent with the provisions of the Model Title Insurance Act, which was sponsored by the National Association of Insurance Commissioners (NAIC) and provides for a charge for insured closing protection. NAIC has recognized closing protection as a significant risk category for which title underwriters should be compensated. Louisiana Revised Statutes 22, Section 2092.5 C. 1. provide title underwriters with the authority to issue closing protection coverage at an appropriate premium.

The charge for closing protection is a premium and subject to the applicable regulations of the Louisiana Department of Insurance, including sanctions for deviations from approved rates. As 100% of the closing protection coverage is payable to the title underwriter, it must be separately identified in Title Charges on the HUD-1 (section 1100) and designated as payable to the title underwriter that has provided the protection.

The Closing Protection Coverage and the related premium will become effective for each order placed on, or after, August 1, 2004.

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This press release was prepared by the Louisiana Title Statistical Services Organization, Inc. (LATSSOI) as a public service to interested third parties. Excerpts can be utilized with or without attribution to the Louisiana Title Statistical Services Organization, Inc.

Contact:
Joseph L. Petrelli
Demotech, Inc.
c/o 2941 Donnylane Boulevard
Columbus, Ohio 43235-3228
(614) 761-8602 Phone
(614) 761-0906 Fax