Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69B - Division of Insurance Agent and Agency Services › Chapter 69B-186 - TITLE INSURANCE › Section 69B-186.010 - Unlawful Rebates and Inducements Related to Title Insurance Transactions

Current through Reg. 50, No. 138; July 16, 2024
(1) The purpose of this rule is to interpret
				Section  626.9541(1)(h),
				F.S., which provides that it is an unfair method of competition and unfair or
				deceptive act or practice prohibited by Section
				 626.9521, F.S., to engage in
				certain activities related to title insurance.
(2) All lists contained within this rule are
				intended as examples and are not exhaustive. This rule does not prohibit
				inducements or rebates provided by filed or approved rates or rating manuals,
				advertising gifts allowed by Section
				 626.9541(1)(m),
				F.S., or inducements and rebates otherwise expressly allowed by law.
(3) For purposes of this rule, the term
				"referrer of settlement service business" means any person who is in a position
				to refer title insurance business incident to or part of a real estate
				transaction, or an associate of such person. A referrer of settlement service
				business may be a title insurance agent, title insurance agency, title
				insurance company, attorney, real estate broker, real estate agent, real estate
				licensee, broker associate, sales associate, mortgage banker, mortgage broker,
				lender, real estate developer, builder, property appraiser, surveyor, escrow
				agent, closing agent, or any other person or entity involved in a real estate
				transaction for which title insurance could be issued; or any employee,
				officer, director, or representative of such a person or entity.
(4) As they relate to the transaction of
				title insurance, the following activities, whether performed directly or
				indirectly, for or by any referrer of settlement service business, are
				inducements for the sale, placement or referral of title insurance business in
				violation of Sections
				 626.9521 and
				 626.9541(1)(h),
				F.S.:
(a) Facilitating any discount,
				reduction, credit, or paying any fee or portion of the cost of an inspection,
				inspection report, appraisal, or survey, including wind inspection, to or for a
				purchaser or prospective purchaser of title insurance.
(b) Providing membership in any organization,
				society, association, guild, union, alliance or club at a discount, reduced
				rate, or at no cost to a referrer of settlement service business.
(c) Making or offering to make a charitable
				or other tax-deductible contribution on behalf of the purchaser or prospective
				purchaser of title insurance.
(d)
				Providing or offering stocks, bonds, securities, property, or any dividend or
				profit accruing or to accrue thereon to a referrer of settlement service
				business. However, the use of lawful affiliated business arrangements that are
				permitted under the Federal Real Estate Settlement Procedure Act would not
				violate this subparagraph and would be allowable under subsection (2) of this
				rule.
(e) Providing or offering
				employment to a referrer of settlement service business in exchange for the
				purchase of title insurance.
(f)
				Providing or paying for the printing of bulletins, flyers, post cards, labels,
				etc. that promote the business of a referrer of settlement service
				business.
(g) Furnishing or paying
				for the furnishing of office equipment (fax machines, telephones, copy
				machines, etc.) to a referrer of settlement service business.
(h) Providing or paying for cellular
				telephone contracts for a referrer of settlement service business.
(i) Providing simulated panoramic home and
				property tours to real estate brokers or real estate sales associates that they
				utilize to promote their listings.
(j) Providing or paying for gift cards or
				gift certificates to or for a referrer of settlement service business or to a
				purchaser or prospective purchaser of title insurance.
(k) Sponsoring and hosting, or paying for the
				sponsoring and hosting, of open houses for real estate brokers or real estate
				sales associates to promote their listings.
(l) Providing or paying for food, beverages,
				or room rentals at events designed to promote the business of a referrer of
				settlement service business other than the title insurance agent or
				agency.
(m) Paying advertising
				costs to advertise and promote the listings of real estate brokers or real
				estate sales associates via publications, signs, emails, websites, web pages,
				banners, or other forms of media.
(n) Providing an endorsement, designation of
				preferred status, approved status, or featured partner status on publications,
				signs, emails, websites, web pages, banners or other forms of media promoting
				the business of real estate brokers or real estate sales associates.
(o) Paying a referrer of settlement service
				business to fill out processing (order) forms in exchange for title insurance
				contracts.
(p) Providing "leads" or
				mailing lists to or on behalf of a referrer of settlement service business at
				no cost or a reduced cost.
(q)
				Entering into any arrangement to provide unearned compensation to a referrer of
				settlement service business.
(r)
				Providing, or offering to provide, non-title services, without a charge that is
				commensurate with the actual cost, to a referrer of settlement service
				business.
(s) Waiving of fees,
				costs, or premium for title updates or endorsements requested after the
				issuance of the title insurance policy.
(t) Assuming any party's responsibility to
				provide refunds to consumers under applicable laws and
				regulations.