ALTA Approves Revision to Closing Protection Letters
Tuesday, November 20, 2018
The ALTA Board of Governors approved a recommendation to revise the ALTA Closing Protection Letters (CPLs) and adopt four new endorsements during a meeting on Oct. 10. The subject forms are currently posted for industry comment and are subject to change before final. The deadline for comment is Nov. 30. Forms may be downloaded at alta.org/policy-forms. Upon review of comments and final publication on or about Dec. 1, the prior versions of the CPLs will be moved to the archives.
The ALTA Board approved a recommendation from the Forms Committee to revise the ALTA Single Transaction and Multiple Transactions Closing Protection Letters. The committee recognized the need to address the epidemic of wire fraud incidents and attempts, including a clarification of coverage extended to customers in the CPLs. The following changes were approved by the ALTA Board:
- Clarification of the optional header details to add the issuing office and ALTA Registry ID.
- Clarification of Conditions and Exclusions to address wire fraud and related incidents.
- Clarification of Conditions and Exclusions to emphasize the prohibition of class actions should an insurer choose to exclude the optional Arbitration Clause.
The revised CPLs provide more complete information and clearer coverage details for insureds as the industry faces the challenges of wire fraud. The revisions also more clearly emphasize the prohibition of class actions.