A document issued by a title insurance company which protects a mortgagee against embezzlement or failure to follow specific closing instructions.

A letter issued from the Title Company that protects the lender if the title company fails to follow the specific closing instructions.

An Indemnity given to a lender from a title insurance company, agreeing to be responsible if the closing agent does not follow the lender's instructions or misappropriates the loan proceeds. Lender's usually require an insured closing letter be on file for each settlement.