Utah Administrative Code
Topic - Insurance
Title R592 - Title and Escrow Commission
Rule R592-6 - Unfair Inducements and Marketing Practices in Obtaining Title Insurance Business
Section R592-6-4 - Prohibited Unfair Methods of Competition
Current through Bulletin 2024-06, March 15, 2024
A person identified in Section R592-6-2 who provides or offers to provide, directly or indirectly, any of the following benefits to any client has violated Section 31A-23a-402 and has engaged in an unfair method of competition.
(1) Furnishing a title insurance commitment when the title producer is aware that no policy is intended to be issued without one of the following:
(2) Paying any charges for the cancellation of an existing title insurance commitment issued by a competing organization, unless that commitment discloses a defect that gives rise to a claim on an existing policy.
(3) Furnishing escrow services pursuant to Section 31A-23a-406:
(4) Waiving all or any part of established fees or charges for services that are not the subject of rates or escrow charges filed with the commissioner.
(5) Deferring or waiving any payment for insurance or services otherwise due and payable, including a series of real estate transactions for the same parcel of property.
(6) Furnishing services not reasonably related to a bona fide title insurance, escrow, settlement, or closing transaction, including non-related delivery services, accounting assistance, or legal counseling.
(7) Paying for, furnishing, or waiving all or any part of the rental or lease charge for space that is occupied by any client.
(8) Renting or leasing space from any client, regardless of the purpose, at a rate that is excessive or inadequate when compared with rental or lease charges for comparable space in the same geographic area, or paying rental or lease charges based in whole or in part on the volume of business generated by any client.
(9) Furnishing any part of a title producer's facilities, including conference rooms or meeting rooms, to a client or its trade association, for anything other than providing escrow or title services, or related meetings, without receiving a fair rental or lease charge comparable to other rental or lease charges for facilities in the same geographic area.
(10) Co-habitating or sharing office space with a client of a title producer.
(11) Furnishing all or any part of the time or productive effort of any employee of the title producer, including a secretary, clerk, messenger, or escrow officer, to any client.
(12) Paying for all or any part of the salary of a client or an employee of any client.
(13) Paying, or offering to pay, either directly or indirectly, salary, commissions, or any other consideration to any employee who is at the same time licensed as a real estate agent or real estate broker, or as a mortgage lender or mortgage company subject to Section 31A-2-405 and Rule R592-5.
(14)
(15) Sponsoring, cosponsoring, subsidizing, contributing fees, prizes, gifts, food, or otherwise providing anything of value for an activity of a client, except as allowed under Section R592-6-5. Activities include open houses at homes or property for sale, meetings, breakfasts, luncheons, dinners, conventions, installation ceremonies, celebrations, outings, cocktail parties, hospitality room functions, open house celebrations, dances, fishing trips, gambling trips, sporting events of any kind, hunting trips or outings, golf or ski tournaments, artistic performances, and outings in recreation areas or entertainment areas.
(16) Sponsoring, cosponsoring, subsidizing, supplying prizes or labor, except as allowed under Section R592-6-5, or otherwise providing things of value for promotional activities of a client. Title producers may attend activities of a client if there is no additional cost to the title producer, other than their own entry fees, registration fees, and meals; the fees may not be greater than those charged to clients or others attending the function.
(17) Providing gifts or anything of value to a client in connection with social events such as birthdays or job promotions. A letter or card in these instances will not be interpreted as a thing of value.
(18) Furnishing or providing access to the following, even for a cost:
(19) Issuing a newsletter that is property specific or that highlights specific customers.
(20) Providing access to real property information that the title producer pays to produce, develop, or maintain, except:
(21)
(22)
(23) Using interests in other business entities, including I.R.C. Section 1031 qualified intermediaries and escrow companies to enter into any agreement, arrangement, or understanding, or to pursue any course of conduct designed to avoid the provisions of this rule.
(24) For self-promotional open houses:
(25) Making a donation to a charitable organization created, controlled, or managed by a client.
(26) Making a charitable donation that:
(27) Distributing outside the regular course of business to clients, consumers, and members of the general public, self-promotional items that:
(28) Making expenditures for business meals or business activities on behalf of any person, whether a client or not, as a method of advertising if:
(29) Conducting a continuing education program that:
(30) Acknowledging a wedding, birth, or adoption of a child, or a funeral of a client or a member of the client's immediate family with flowers or gifts exceeding $75.