New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter II - Agents, Brokers And Adjusters › Part 35 - Title Insurance: Title Insurance Agents, Aflliated Relationships, And Required Disclosures › Section 35.4 - Insurance Law section 6409(d); affiliated business relationships; other prohibitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				Pursuant to Insurance Law section
				6409(d), no title
				insurance corporation, title insurance agent, or any other person acting for or
				on behalf of the corporation or agent, including an employee or independent
				contractor, shall offer or make, directly or indirectly, any rebate, or pay or
				give any consideration or valuable thing as an inducement or compensation for
				title insurance business, 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, for which a title insurance policy is or
				may be issued and no such person shall receive, directly or indirectly, any
				rebate, consideration or valuable thing as an inducement or compensation for
				title insurance business.
(b) A
				title insurance agent or title insurance corporation, or affiliated person of
				the title insurance agent or title insurance corporation, shall not directly or
				indirectly refer title insurance business to another title insurance agent or
				title insurance corporation in return for that title insurance agent or title
				insurance corporation, or affiliated person of that title insurance agent or
				title insurance corporation, referring business directly or indirectly to the
				first title insurance agent, title insurance corporation or affiliated person.
				Any such arrangement shall be deemed to be intended to evade Insurance Law
				section
				6409(d).
(c) A title insurance agent or title
				insurance corporation shall not require an affiliated person to refer a
				specified amount of title insurance to the title insurance corporation or title
				insurance agent.
(d) A title
				insurance agent or title insurance corporation shall not directly or indirectly
				provide compensation to an applicant for insurance or to any person 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 for which a title insurance policy is or may be issued, that
				refers title insurance business to the title insurance agent or title insurance
				corporation except that a title insurance agent or title insurance corporation
				may:
(1) pay the fair market value for actual
				bona fide services rendered to the title insurance agent or title insurance
				corporation; and
(2) provide a
				return on investment in the title insurance agent or title insurance
				corporation to the person provided that the return on investment is
				commensurate with that person's ownership interest in the title insurance agent
				or title insurance corporation, is not related to the amount of title insurance
				business the person refers to the title insurance agent or title insurance
				corporation, and the payment does not otherwise violate Insurance Law section
				6409 or RESPA.