Bill Text: NY S05093 | 2013-2014 | General Assembly | Introduced

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Bill Title: Requires disclosure of title service charges by a title insurance provider to the customer upon receipt of an application for a title insurance policy.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-01-08 - REFERRED TO INSURANCE [S05093 Detail]

Download: New_York-2013-S05093-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5093
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                      May 8, 2013
                                      ___________
       Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
         when printed to be committed to the Committee on Insurance
       AN ACT to amend the insurance  law,  in  relation  to  disclosing  title
         service  charges  by  a  title insurance provider to the customer upon
         receipt of an application for a title
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The insurance law is amended by adding a new section 6412
    2  to read as follows:
    3    S 6412. DISCLOSURE OF TITLE  SERVICE  CHARGES  BY  A  TITLE  INSURANCE
    4  PROVIDER.  (A)  DEFINITIONS. (1) "TITLE INSURANCE PROVIDER" SHALL MEAN A
    5  TITLE INSURANCE CORPORATION, AS DEFINED IN SUBSECTION (A) OF SECTION SIX
    6  THOUSAND FOUR HUNDRED ONE OF  THIS  ARTICLE,  AND  ANY  AGENT,  APPROVED
    7  ATTORNEY OR EXAMINING COUNSEL WHICH IS ISSUING A TITLE INSURANCE POLICY,
    8  AS DEFINED IN SUBSECTION (B) OF SECTION SIX THOUSAND FOUR HUNDRED ONE OF
    9  THIS ARTICLE, ON BEHALF OF A TITLE INSURANCE CORPORATION.
   10    (2)  "TITLE  SERVICES"  OR  "TITLE  SERVICE"  SHALL MEAN EVERY SERVICE
   11  ORDERED OR TO BE ORDERED BY A CUSTOMER FROM A TITLE INSURANCE  PROVIDER,
   12  WHETHER  SUCH  SERVICE  IS  RENDERED  BY  A  TITLE INSURANCE PROVIDER OR
   13  OBTAINED BY A TITLE INSURANCE PROVIDER THROUGH A THIRD PARTY, THE CHARGE
   14  FOR WHICH IS IMPOSED ON A CUSTOMER AND IS NOT REGULATED BY  THE  DEPART-
   15  MENT,  INCLUDING,  WITHOUT  LIMITATION,  THE  OBTAINING  OF GOVERNMENTAL
   16  RECORDS, THE ORDERING OF A  SURVEY  OR  A  SURVEY  INSPECTION,  AND  THE
   17  RECORDING  OR FILING OF INSTRUMENTS IN THE OFFICE OF A RECORDING OFFICER
   18  AS DEFINED IN SECTION TWO HUNDRED NINETY OF THE REAL PROPERTY LAW OR  IN
   19  ANY OTHER STATE, COUNTY OR MUNICIPAL OFFICE.
   20    (3) "SERVICE CHARGES" OR "SERVICE CHARGE" SHALL MEAN AN AMOUNT CHARGED
   21  TO  A  CUSTOMER  BY A TITLE INSURANCE PROVIDER FOR PROVIDING ONE OR MORE
   22  TITLE SERVICES; PROVIDED, HOWEVER, THAT "SERVICE  CHARGES"  OR  "SERVICE
   23  CHARGE"  SHALL  NOT  INCLUDE  A CHARGE FOR THE SEARCH AND EXAMINATION OF
   24  TITLE.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06616-02-3
       S. 5093                             2
    1    (4) "APPLICANT" SHALL MEAN THE PERSON OR ENTITY ORDERING TITLE  INSUR-
    2  ANCE OR TITLE SERVICES, OR THE DULY AUTHORIZED REPRESENTATIVE THEREOF.
    3    (5)  "CUSTOMER"  SHALL MEAN ANY PERSON OR ENTITY PAYING A TITLE INSUR-
    4  ANCE PROVIDER TITLE INSURANCE PREMIUMS AND  SERVICE  CHARGES  FOR  TITLE
    5  SERVICES  FOR  REAL PROPERTY IMPROVED BY A ONE-TO-FOUR FAMILY RESIDENCE,
    6  OR THE DULY AUTHORIZED REPRESENTATIVE THEREOF.
    7    (B) ON RECEIPT OF AN APPLICATION FOR A POLICY OF TITLE  INSURANCE  FOR
    8  REAL PROPERTY IMPROVED BY A ONE-TO-FOUR FAMILY RESIDENCE, A TITLE INSUR-
    9  ANCE PROVIDER SHALL ISSUE TO THE APPLICANT A LIST OF SERVICE CHARGES FOR
   10  ALL  TITLE  SERVICES APPLICABLE TO THE TRANSACTION.  THE TITLE INSURANCE
   11  PROVIDER SHALL ONLY BE REQUIRED TO PROVIDE THE AMOUNTS OF SERVICE CHARG-
   12  ES APPLICABLE TO THE TRANSACTION BASED UPON THE FACTS KNOWN TO THE TITLE
   13  INSURANCE PROVIDER AT THE TIME OF THE APPLICATION.
   14    (C) A STATEMENT OF CHARGES ISSUED BY A TITLE INSURANCE PROVIDER  TO  A
   15  CUSTOMER SHALL CLEARLY AND SEPARATELY ITEMIZE:
   16    (1)  EACH SERVICE CHARGE TO BE PAID BY A CUSTOMER TO A TITLE INSURANCE
   17  PROVIDER, WHICH THE TITLE INSURANCE PROVIDER WILL PAY TO A  THIRD  PARTY
   18  FOR TITLE SERVICES RENDERED BY SUCH THIRD PARTY;
   19    (2)  EACH SERVICE CHARGE TO BE PAID BY A CUSTOMER TO A TITLE INSURANCE
   20  PROVIDER FOR TITLE SERVICES RENDERED BY SUCH TITLE  INSURANCE  PROVIDER;
   21  AND
   22    (3) ANY OTHER SERVICE CHARGES IMPOSED BY A TITLE INSURANCE PROVIDER ON
   23  A CUSTOMER FOR ANY OTHER TITLE SERVICE.
   24    (D)  IN  THE EVENT OF A WILLFUL FAILURE TO COMPLY WITH THIS SECTION, A
   25  CUSTOMER SHALL BE ENTITLED TO RECOVER FROM THE TITLE INSURANCE  PROVIDER
   26  RENDERING THE TITLE SERVICES THE LESSER OF:
   27    (1) FIFTEEN HUNDRED DOLLARS; OR
   28    (2)  THREE  TIMES  THE  AMOUNT  OF  EACH  SERVICE CHARGE BILLED TO THE
   29  CUSTOMER IN VIOLATION OF THIS SECTION.
   30    (E) NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED AS PERMITTING
   31  ANY PRACTICE OR CONDUCT OTHERWISE PROHIBITED BY LAW.
   32    S 2. This act shall take effect on the ninetieth day  after  it  shall
   33  have become a law.