2023 New York Laws › ISC - Insurance › Article 64 - Title Insurance Corporations › 6409 - Filing of Policy Forms; Rates; Classification of Risks; Commissions and Rebates Prohibited.

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