VA| Virginia Bureau of Insurance‘s Administrative Letter 2025-05, clarifies that Attorney Opinion Letters (AOLs) are being marketed as alternatives to title insurance within Virginia, but they do not— and cannot by law—offer the same protections as regulated title insurance policies. The administrative letter outlines the legal distinctions between AOLs and title insurance, warning both consumers and entities to understand these differences and comply with state insurance laws. Entities issuing AOLs must take care not to cross into the unlicensed business of insurance, as only licensed title insurers may legally provide title insurance in Virginia.
- AOLs are not regulated title insurance and may leave consumers exposed to risks that title insurance covers.
- Virginia law requires settlement agents to notify buyers that they may purchase owners title insurance, reaffirming consumer choice and protection.
- Offering AOLs that act as title insurance without proper licensure may violate state regulations and be subject to enforcement.