Escrow & Title
What is 'title insurance premium' and how is it calculated in Illinois?
AA monthly premium paid over the life of the policy
BA one-time premium paid at closing based on the property's purchase price or loan amount, using rates set by the Illinois Department of Insurance✓ Correct
CAn annual premium set by the individual title company
DA premium based on the number of years the buyer plans to own the property
Explanation
Title insurance is a one-time premium paid at closing. Owner's policy premiums are typically based on the purchase price; lender's policy premiums are based on the loan amount. In Illinois, title insurance rates are regulated by the Department of Insurance and filed rate schedules. Once paid, the policy provides coverage for as long as the insured has an interest in the property (owner's policy) or as long as the loan is outstanding (lender's policy).
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