Escrow & Title
What is 'insured closing protection' (ICP) in Illinois title insurance?
AInsurance protecting the title company's own operations
BA protection from the title underwriter indemnifying the buyer and lender against loss from the closing agent's (title company's) theft or fraud✓ Correct
CInsurance protecting the escrow account from bank failure
DIDFPR's insurance fund protecting consumers from title company insolvency
Explanation
Insured Closing Protection (ICP), also called a Closing Protection Letter (CPL), is an agreement from the title insurance underwriter to indemnify the buyer and lender if they suffer loss due to the closing agent's (title company's) misappropriation of funds, fraud, or failure to follow closing instructions. This protects parties from dishonest conduct by the closing agent—a risk separate from title defects.
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