Current through Register Vol. 46, No. 39, September 25, 2024
(a) Except as provided in subdivision (c) of
this section, an affiliated person that directly or indirectly refers an
applicant for title insurance to a title insurance agent or title insurance
corporation shall, at the time of making the referral, provide the following
disclosures pursuant to Insurance Law section 2113(d) in a separate writing to
the applicant, and shall obtain written acknowledgement of receipt from the
applicant:
(1) whether the affiliated person
has a financial or other interest in the title insurance agent or title
insurance corporation and whether the affiliated person is likely to receive a
financial or other benefit as a result of this referral;
(2) that the applicant is not required to use
the services of the title insurance agent or title insurance corporation to
which the applicant is being referred, and that the applicant may shop around
to determine whether the applicant is receiving the best services and the best
rate for the title services;
(3)
that any compensation or other thing of value paid by the title insurance agent
or title insurance corporation to the affiliated person is based on that
person's financial or other interest in the title insurance agent or title
insurance corporation and is not related to the amount of title insurance
business that person refers to the title insurance agent or title insurance
corporation; and that the payment of such compensation or other thing of value
does not violate Insurance Law sections 2324 or 6409 or, if applicable,
RESPA;
(4) that the affiliated
person is not required to refer a specified amount of title insurance business
to the title insurance agent or title insurance corporation;
(5) the amount or value of any compensation
or other thing of value that the affiliated person expects to receive in
connection with the services to be provided by the title insurance agent or
title insurance corporation to which the applicant is being referred; provided,
however, that if the amount or value of any compensation to be disclosed is not
known at the time that the disclosure is required, then the affiliated person
shall:
(i) describe the circumstances that
may determine the receipt and amount or value of the compensation;
and
(ii) provide a reasonable
estimate of the amount or value, which may be stated as a range; and
(6) whether the title insurance
agent or title insurance corporation generates non-affiliated business from
more than one source.
(b) Except as provided in subdivision (c) of
this section, the title insurance agent or title insurance corporation to which
a referral is made shall be responsible for ensuring that the applicant
receives all disclosures that are required hereunder.
(c) A title insurance agent that represents
an applicant in another capacity, including as an attorney, shall not be
subject to the disclosure requirements set forth in subdivision (a) of this
section, but shall advise the applicant that the applicant is not required to
use the person as a title insurance agent.
