Bill Text: NY S02929 | 2019-2020 | General Assembly | Amended
Bill Title: Permits any title insurance corporation or title insurance agent, or any other person acting for or on behalf of the title insurance corporation or title insurance agent, from undertaking any usual and customary marketing activity aimed at acquainting present and prospective customers with the advantages of using a particular title insurer or title insurance agent that are not intended for the purpose of a reward for the future placement of, or the past placement, of a particular piece of title insurance business; lays out such permitted practices.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO INSURANCE [S02929 Detail]
Download: New_York-2019-S02929-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 2929--A 2019-2020 Regular Sessions IN SENATE January 30, 2019 ___________ Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law, in relation to allowable expenses for title insurance corporations and title insurance agents 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. LBD06686-03-9S. 2929--A 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) Nothing contained in paragraph one of this subsection to the 12 contrary shall prohibit any title insurance corporation or title insur- 13 ance agent, or any other person acting for or on behalf of the title 14 insurance corporation or title insurance agent, from undertaking any 15 usual and customary marketing activity aimed at acquainting present and 16 prospective customers with the advantages of using a particular title 17 insurer or title insurance agent that are not intended for the purpose 18 of a reward for the future placement of, or the past placement, of a 19 particular piece of title insurance business, including the following 20 expressly permitted activities: 21 (i) Advertising or marketing in any publication, event or media, at 22 market rates, including sponsorships, advertising gifts, promotional 23 items and consumables; 24 (ii) Meals and beverages with present or prospective customers where 25 one or more employees or representatives of the title insurance corpo- 26 ration or title insurance agent are present and title insurance business 27 is discussed; 28 (iii) Continuing legal education course materials or instruction; and 29 (iv) Charitable contributions in the name of the title insurance 30 corporation or title insurance agent. 31 Notwithstanding the provisions of this paragraph, no title insurance 32 corporation or title insurance agent, or any other person acting for or 33 on behalf of a title insurance corporation or title insurance agent 34 shall undertake any expenses for providing vacations, trips, travel, 35 gifts, gift cards, gift certificates or other thing of specific monetary 36 value to any present and prospective customers. 37 § 2. This act shall take effect immediately.
