senate Bill S3571

2011-2012 Legislative Session

Authorizes superintendent of insurance to conduct a study and make recommendations on title insurance premium rates in N.Y. state

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to insurance
Feb 25, 2011 referred to insurance

S3571 - Bill Details

See Assembly Version of this Bill:
A2016
Current Committee:
Senate Insurance
Law Section:
Insurance
Versions Introduced in 2009-2010 Legislative Session:
S6289, A9452

S3571 - Bill Texts

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Authorizes superintendent of insurance to conduct study and make recommendations on title insurance premium rates in NYS.

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BILL NUMBER:S3571

TITLE OF BILL:

An act
in relation to directing the superintendent of insurance to conduct a
study and issue a report regarding title insurance premium rates

PURPOSE OR GENERAL IDEA OF BILL:

It authorizes the state superintendent of insurance to conduct a study
and make recommendations on title insurance premium rates in New York
State.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1.1: The superintendent of insurance is hereby authorized and
directed to conduct a comprehensive study on title insurance
programs.The workers' compensation law is amended to add a new
subdivision 6.

Section 1.2: Within a year of the effective date of the act the
superintendent shall issue a report to the governor and the
legislature that shall include but not be limited to a.) an analysis
of title insurance premiums in New York State; b.) steps that can be
taken to reduce such rates; and c.) what service charges are
regularly added to customers' bills for title services.

JUSTIFICATION:

Title insurance guarantees homebuyers against claims of prior liens
against property they intend to purchase. Like other forms of
insurance, it is regulated by New York State. currently, title
insurance is available only through private entities and costs
citizens an average of $1.2 billion, in order to guarantee payments
of $50 million, according to 2007 statistics. Because title insurance
is a requirement of home purchase, citizens must 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. A study of current, private title insurance pricing
will allow the State superintendent of insurance to properly assess
what appropriate rates for title insurance should be according to
both the market and the actual costs of insuring title.

PRIOR LEGISLATIVE HISTORY:

S.6289 2010: Held in Insurance Committee.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  3571

                       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 Insurance

AN ACT in relation to  directing  the  superintendent  of  insurance  to
  conduct  a  study and issue a report regarding title insurance premium
  rates

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

  Section 1. 1. The superintendent of insurance is hereby authorized and
directed  to  conduct  a  comprehensive study on title insurance premium
rates.
  2. Within one year of the effective date of this act  the  superinten-
dent  of insurance shall issue a report to the governor and the legisla-
ture. Such study and report shall include but shall not be limited to:
  a. an analysis of title insurance premium rates in New York state;
  b. steps that can be taken to reduce such rates; and
  c. what service charges are regularly added to  customers'  bills  for
title services.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05047-01-1

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