senate Bill S3565

Directs state insurance fund to offer title insurance and authorizes superintendent of insurance to implement such

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 25 / Feb / 2011
    • REFERRED TO LABOR
  • 04 / Jan / 2012
    • REFERRED TO LABOR

Summary

Directs state insurance fund to offer title insurance and authorizes superintendent of insurance to implement such program.

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Bill Details

See Assembly Version of this Bill:
A4168
Versions:
S3565
Legislative Cycle:
2011-2012
Current Committee:
Senate Labor
Law Section:
Workers' Compensation Law
Laws Affected:
Amd §76, Work Comp L
Versions Introduced in 2009-2010 Legislative Cycle:
S6288, A9441

Sponsor Memo

BILL NUMBER:S3565

TITLE OF BILL:

An act
to amend the workers' compensation law, in relation to directing the
state insurance fund to offer title insurance or certificates of clear
title

PURPOSE OR GENERAL IDEA OF BILL:

It directs the state insurance fund to offer title insurance and
authorizes the superintendent of insurance to implement.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Section 76 of The
workers' compensation law is amended to add a new
subdivision 6.

§2: The superintendent of insurance is directed to create, within the
insurance department, a title insurance bureau which shall implement
the title insurance program.

JUSTIFICATION:

Like other forms of insurance, title insurance, which guarantees
homebuyers against claims of prior liens against property they intend
to purchase, is regulated by New York State. Currently, title
insurance is available through only private entities and costs
citizens, on average, $1.2 billion, in order to guarantee payments of
$50 million, according to 2007 statistics. Because title insurance is
a requirement of home purchase, citizen are forced to pay accept the
prices set by private industry, but that require the approval of the
New York State Insurance Department. New York State should take a
greater interest in protecting citizens from the overpricing of
something the state requires of home buyers. For example, the State
of Iowa has prohibited the private sale of title insurance, allowing
the government to set rates and ensure that its citizens are offered
standard price. Reform of the current New York State system could
preserve the legal and social benefits of guaranteed title while
saving New Yorkers hundreds of millions of dollars annually.

PRIOR LEGISLATIVE HISTORY:

2010: A.9441/S.6288 - Held in Labor.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3565

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 25, 2011
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor

AN ACT to amend the workers' compensation law, in relation to  directing
  the  state  insurance fund to offer title insurance or certificates of
  clear title

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section 76 of the workers' compensation law is amended by
adding a new subdivision 6 to read as follows:
  6. THE PURPOSES OF THE STATE INSURANCE FUND CREATED  IN  THIS  SECTION
ARE HEREBY ENLARGED TO PERMIT IT TO FURNISH TITLE INSURANCE POLICIES, AS
DEFINED  IN  SUBSECTION  (B) OF SECTION SIX THOUSAND FOUR HUNDRED ONE OF
THE INSURANCE LAW, AND/OR CERTIFICATES OF CLEAR TITLE. A  SEPARATE  FUND
IS  HEREBY CREATED WITHIN THE STATE INSURANCE FUND, WHICH SHALL BE KNOWN
AS THE "TITLE INSURANCE FUND", AND WHICH SHALL CONSIST OF  ALL  PREMIUMS
RECEIVED AND PAID INTO SAID FUND ON ACCOUNT OF SUCH INSURANCE, ALL SECU-
RITIES  ACQUIRED BY AND THROUGH THE USE OF MONEYS BELONGING TO SAID FUND
AND OF INTEREST EARNED UPON MONEYS BELONGING TO SAID FUND AND  DEPOSITED
OR  INVESTED  AS  HEREIN  PROVIDED.  SAID  TITLE INSURANCE FUND SHALL BE
APPLICABLE TO THE PAYMENTS, EXPENSES AND ASSESSMENTS ON ACCOUNT OF TITLE
INSURANCE POLICIES WRITTEN PURSUANT TO THE RULES AND REGULATIONS  ESTAB-
LISHED BY THE SUPERINTENDENT OF INSURANCE.
  S 2. The superintendent of insurance is hereby:
  1. directed to create, within the insurance department, a title insur-
ance  bureau  which  shall  implement the title insurance program estab-
lished by this act; and
  2. authorized to prescribe, amend and withdraw rules  and  regulations
implementing  the provisions of subdivision 6 of section 76 of the work-
ers' compensation law, as added by section one of this act.
  S 3. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05045-01-1

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