N.Y. ISC Law § 6409 — New York Code / Act ISC / Article 64 / Section 6409
Filing of policy forms; rates; classification of risks; commissions and rebates prohibited
Status: in_force

§ 6409. Filing of policy forms; rates; classification of risks;\ncommissions and rebates prohibited. (a) No title insurance policy shall\nbe issued or delivered in this state, unless it has been filed with the\nsuperintendent in accordance with article twenty-three of this chapter.\n  (b) Title insurance rates and rate filings shall be subject to article\ntwenty-three of this chapter.\n  (c) Notwithstanding any other provision of this article, every title\ninsurance corporation shall offer, at or prior to title closing, an\noptional policy form that insures the title of owner-occupied real\nproperty used predominantly for residential purposes that consists of\nnot more than four dwelling units for an amount equal to the market\nvalue of the property at the time a loss is discovered. Such policy form\nshall be filed with, and approved by, the superintendent in accordance\nwith article twenty-three of this chapter. Rates for such coverage shall\nbe filed and approved pursuant to article twenty-three of this chapter.\n  (d) No title insurance corporation, title insurance agent, or any\nother person acting for or on behalf of the title insurance corporation\nor title insurance agent, shall offer or make, directly or indirectly,\nany rebate of any portion of the fee, premium or charge made, or pay or\ngive to any applicant, or to any person, firm, or corporation acting as\nagent, representative, attorney, or employee of the owner, lessee,\nmortgagee or the prospective owner, lessee, or mortgagee of the real\nproperty or any interest therein, either directly or indirectly, any\ncommission, any part of its fees or charges, or any other consideration\nor valuable thing, as an inducement for, or as compensation for, any\ntitle insurance business, nor shall any applicant, or any person, firm,\nor corporation acting as agent, representative, attorney, or employee of\nthe owner, lessee, mortgagee or of the prospective owner, lessee, or\nmortgagee of the real property or anyone having any interest in real\nproperty knowingly receive, directly or indirectly, any such rebate or\nother consideration or valuable thing. Any person or entity who violates\nthis section shall be subject to a penalty of (1) five thousand dollars;\nor (2) up to ten times the amount of any compensation or rebate received\nor paid in the case of a title insurance corporation or title insurance\nagent; or (3) up to five times the amount of any compensation or rebate\nreceived or paid; or (4) in the case of an applicant for title insurance\nthat covers real property used predominantly for residential purposes,\nand which consists of not more than four dwelling units, other than\nhotels and motels, an amount not to exceed the compensation or rebate\nreceived or paid, when such applicant knew that it was a violation to\nreceive such rebate, or other consideration or valuable thing; provided,\nhowever, if such applicant did not know that it was a violation to\nreceive such rebate, or other consideration or valuable thing, he or she\nshall not be assessed a penalty under this subdivision.\n  (e) Premium rates for coverage shall fully reflect the foregoing\nprohibitions of subsection (d) of this section.\n