New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IX - Unfair Trade Practices › Part 228 - TITLE INSURANCE RATES, EXPENSES AND CHARGES › Section 228.2 - Prohibition on Inducements for Future Title Insurance Business; Permitted Expenses

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				Pursuant to Insurance Law section
				6409(d) as well as other
				Insurance Law and Financial Services Law provisions that authorize the
				superintendent to regulate market conduct in the title insurance industry, no
				title insurance corporation, title insurance agent, or any other person acting
				for or on behalf of such title insurance corporation or title insurance agent,
				including any employee or independent contractor thereof, shall offer or make
				any rebate, directly or indirectly, or pay or give any consideration or
				valuable thing, to any applicant, or to any person, firm or corporation acting
				as an agent, representative, attorney or employee of the actual or prospective
				owner, lessee, mortgagee of the real property or any interest therein, as an
				inducement for, or as compensation for, any title insurance business, including
				future title insurance business, and maintaining existing title insurance
				business, regardless of whether provided as a quid pro quo for specific
				business.
(b) No title insurance
				corporation, title insurance agent, or any other person acting for or on behalf
				of such title insurance corporation or title insurance agent, including any
				employee or independent contractor thereof, shall provide or offer to provide
				to any person, firm or corporation acting as an agent, representative, attorney
				or employee of the actual or prospective owner, lessee, mortgagee of the real
				property or any interest therein any payment, expense, compensation or benefit
				associated with the following:
(1) Meals and
				beverages unless otherwise authorized under sub-division (c) of this
				section;
(2) entertainment,
				including tickets to sporting events, concerts, shows or artistic
				performances;
(3) gifts, including
				cash, gift cards, gift certificates, or other items with a specific monetary
				face value;
(4) outings, including
				vacations, holidays, golf, ski, fishing, and other sport outings, gambling
				trips, shopping trips, or trips to recreational areas, including country
				clubs;
(5) parties, including
				cocktail parties and holiday parties, open houses;
(6) providing assistance with business
				expenses of another person, including but not limited to rent, employee
				salaries, advertising, furniture, office supplies, telephones,
				telecommunications, computers and other electronic devices and business
				equipment, or automobiles, or leasing, renting, operating, or maintaining any
				of such items, for use by other than a title insurance corporation or title
				insurance agent;
(7) use of
				premises, unless a fair rental fee is charged that is equal to the market value
				in the premises' geographical area;
(8) paying the fees or charges of any
				professional representing an insured as part of a real estate transaction, such
				as an attorney, engineer, appraiser, or surveyor, or paying rent or all or any
				part of the salary or other compensation of any employee or officer of any
				current or prospective customer; and
(9) providing or offering to provide
				non-title services, without a charge that is commensurate with the actual cost
				thereof.