Bill Text: NY A01354 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to the definition of the phrase "an inducement for, or as compensation for, any title insurance business" as it relates to the prohibition against certain actions.
Spectrum: Slight Partisan Bill (Democrat 11-4)
Status: (Introduced - Dead) 2022-01-05 - referred to insurance [A01354 Detail]
Download: New_York-2021-A01354-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1354 2021-2022 Regular Sessions IN ASSEMBLY January 8, 2021 ___________ Introduced by M. of A. CAHILL, PAULIN, WEPRIN, RA, HYNDMAN, MAGNARELLI, WOERNER, McDONOUGH, ENGLEBRIGHT, PHEFFER AMATO, ABINANTI, BRAUNSTEIN, THIELE, BYRNE, DiPIETRO -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to the prohibition of commissions and rebates The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subsection (d) of section 6409 of the insurance law, as 2 amended by section 17 of part V of chapter 57 of the laws of 2014, is 3 amended to read as follows: 4 (d) (1) No title insurance corporation, title insurance agent, or any 5 other person acting for or on behalf of the title insurance corporation 6 or title insurance agent, shall offer or make, directly or indirectly, 7 any rebate of any portion of the fee, premium or charge made, or pay or 8 give to any applicant, or to any person, firm, or corporation acting as 9 agent, representative, attorney, or employee of the owner, lessee, mort- 10 gagee or the prospective owner, lessee, or mortgagee of the real proper- 11 ty or any interest therein, either directly or indirectly, any commis- 12 sion, any part of its fees or charges, or any other consideration or 13 valuable thing, as an inducement for, or as compensation for, any title 14 insurance business, nor shall any applicant, or any person, firm, or 15 corporation acting as agent, representative, attorney, or employee of 16 the owner, lessee, mortgagee or of the prospective owner, lessee, or 17 mortgagee of the real property or anyone having any interest in real 18 property knowingly receive, directly or indirectly, any such rebate or 19 other consideration or valuable thing. Any person or entity who violates 20 this section shall be subject to a penalty of [(1)] (i) five thousand 21 dollars; or [(2)] (ii) up to ten times the amount of any compensation or 22 rebate received or paid in the case of a title insurance corporation or 23 title insurance agent; or [(3)] (iii) up to five times the amount of any EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01506-01-1A. 1354 2 1 compensation or rebate received or paid; or [(4)] (iv) in the case of an 2 applicant for title insurance that covers real property used predomi- 3 nantly for residential purposes, and which consists of not more than 4 four dwelling units, other than hotels and motels, an amount not to 5 exceed the compensation or rebate received or paid, when such applicant 6 knew that it was a violation to receive such rebate, or other consider- 7 ation or valuable thing; provided, however, if such applicant did not 8 know that it was a violation to receive such rebate, or other consider- 9 ation or valuable thing, he or she shall not be assessed a penalty under 10 this [subdivision] subsection. 11 (2) For the purposes of this subsection, "an inducement for, or as 12 compensation for, any title insurance business" shall mean a benefit 13 given with the intention to compensate or offer compensation, directly 14 or indirectly, for any past or present placement for a particular piece 15 of title insurance business to any applicant, or person, firm, or corpo- 16 ration acting as agent, representative, attorney, or employee of the 17 owner, lessee, mortgagee or the prospective owner, lessee, or mortgagee 18 of the real property or any interest therein. Nothing contained in para- 19 graph one of this subsection to the contrary shall prohibit any title 20 insurance corporation or title insurance agent, or any other person 21 acting for or on behalf of the title insurance corporation or title 22 insurance agent, from undertaking any usual and customary marketing 23 activity aimed at acquainting present and prospective customers with the 24 advantages of using a particular title insurer or title insurance agent 25 that are not intended for the purpose of a reward for the future place- 26 ment of, or the past placement, of a particular piece of title insurance 27 business. 28 § 2. This act shall take effect immediately.
