Current through Reg. 50, No. 187; September 24, 2024
(1) The purpose of this rule is to interpret
Section 626.9541(1)(h),
F.S., which provides that it is an unfair method of competition and unfair or
deceptive act or practice prohibited by Section
626.9521, F.S., to engage in
certain activities related to title insurance.
(2) All lists contained within this rule are
intended as examples and are not exhaustive. This rule does not prohibit
inducements or rebates provided by filed or approved rates or rating manuals,
advertising gifts allowed by Section
626.9541(1)(m),
F.S., or inducements and rebates otherwise expressly allowed by law.
(3) For purposes of this rule, the term
"referrer of settlement service business" means any person who is in a position
to refer title insurance business incident to or part of a real estate
transaction, or an associate of such person. A referrer of settlement service
business may be a title insurance agent, title insurance agency, title
insurance company, attorney, real estate broker, real estate agent, real estate
licensee, broker associate, sales associate, mortgage banker, mortgage broker,
lender, real estate developer, builder, property appraiser, surveyor, escrow
agent, closing agent, or any other person or entity involved in a real estate
transaction for which title insurance could be issued; or any employee,
officer, director, or representative of such a person or entity.
(4) As they relate to the transaction of
title insurance, the following activities, whether performed directly or
indirectly, for or by any referrer of settlement service business, are
inducements for the sale, placement or referral of title insurance business in
violation of Sections
626.9521 and
626.9541(1)(h),
F.S.:
(a) Facilitating any discount,
reduction, credit, or paying any fee or portion of the cost of an inspection,
inspection report, appraisal, or survey, including wind inspection, to or for a
purchaser or prospective purchaser of title insurance.
(b) Providing membership in any organization,
society, association, guild, union, alliance or club at a discount, reduced
rate, or at no cost to a referrer of settlement service business.
(c) Making or offering to make a charitable
or other tax-deductible contribution on behalf of the purchaser or prospective
purchaser of title insurance.
(d)
Providing or offering stocks, bonds, securities, property, or any dividend or
profit accruing or to accrue thereon to a referrer of settlement service
business. However, the use of lawful affiliated business arrangements that are
permitted under the Federal Real Estate Settlement Procedure Act would not
violate this subparagraph and would be allowable under subsection (2) of this
rule.
(e) Providing or offering
employment to a referrer of settlement service business in exchange for the
purchase of title insurance.
(f)
Providing or paying for the printing of bulletins, flyers, post cards, labels,
etc. that promote the business of a referrer of settlement service
business.
(g) Furnishing or paying
for the furnishing of office equipment (fax machines, telephones, copy
machines, etc.) to a referrer of settlement service business.
(h) Providing or paying for cellular
telephone contracts for a referrer of settlement service business.
(i) Providing simulated panoramic home and
property tours to real estate brokers or real estate sales associates that they
utilize to promote their listings.
(j) Providing or paying for gift cards or
gift certificates to or for a referrer of settlement service business or to a
purchaser or prospective purchaser of title insurance.
(k) Sponsoring and hosting, or paying for the
sponsoring and hosting, of open houses for real estate brokers or real estate
sales associates to promote their listings.
(l) Providing or paying for food, beverages,
or room rentals at events designed to promote the business of a referrer of
settlement service business other than the title insurance agent or
agency.
(m) Paying advertising
costs to advertise and promote the listings of real estate brokers or real
estate sales associates via publications, signs, emails, websites, web pages,
banners, or other forms of media.
(n) Providing an endorsement, designation of
preferred status, approved status, or featured partner status on publications,
signs, emails, websites, web pages, banners or other forms of media promoting
the business of real estate brokers or real estate sales associates.
(o) Paying a referrer of settlement service
business to fill out processing (order) forms in exchange for title insurance
contracts.
(p) Providing "leads" or
mailing lists to or on behalf of a referrer of settlement service business at
no cost or a reduced cost.
(q)
Entering into any arrangement to provide unearned compensation to a referrer of
settlement service business.
(r)
Providing, or offering to provide, non-title services, without a charge that is
commensurate with the actual cost, to a referrer of settlement service
business.
(s) Waiving of fees,
costs, or premium for title updates or endorsements requested after the
issuance of the title insurance policy.
(t) Assuming any party's responsibility to
provide refunds to consumers under applicable laws and
regulations.
(5) Except
as prohibited by Section
626.9541, F.S., expenditures for
the following are not in violation of Sections
626.9521 and
626.9541(1)(h),
F.S., or in violation of this rule:
(a)
Promotional items with a company logo of the title insurance agent or agency,
with a value not to exceed the amount allowed by Section
626.9541(1)(m),
F.S., per item. "Promotional item" does not include a gift certificate, gift
card, or other item that has a specific monetary value on its face, or that may
be exchanged for any other item having a specific monetary value.
(b) Furnishing educational materials, such as
fliers, brochures, pamphlets, or Frequently Asked Question sheets, exclusively
related to title insurance for a referrer of settlement service business that
are not conditioned on the referral of business and that do not involve the
defraying of expenses that otherwise would be incurred by a referrer of
settlement service business.
(c)
Compensation paid to a referrer of settlement service business for goods and
services actually performed at amounts not exceeding the reasonable fair market
value of the goods and services and that is not intended to induce the referral
of title insurance business.
(d)
Any advertising or marketing activities that directly promote the title
insurance business of the title insurance agent or agency, which may include
joint participation in marketing with another party provided that the agent or
agency pays the proportionate share or fair market value of the costs, and does
not violate paragraph (5)(a) of this rule.
(e) A payment by a title insurance company to
its duly appointed agent for services actually performed in the issuance of a
title insurance policy.
(f) A
payment to any person of a bona fide salary or compensation or other payment
for goods or facilities actually furnished or for services actually
performed.
(6) A licensed
and appointed title insurance agent is not prohibited under this rule to affix
a notice to any contract or agreement, stating, "The terms of this contract are
agreed to, but only to the extent that they do not violate the provisions of
Rule 69B-186.010, F.A.C., or Section
626.9541(1)(h),
F.S.," or substantially similar language.
Rulemaking Authority
624.308(1),
626.9611 FS. Law Implemented
626.9521,
626.9541(1)(h),
(m)
FS.
New 2-9-16, Amended
5-13-18.
