senate Bill S812

2013-2014 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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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 09, 2013 referred to insurance

S812 - Bill Details

See Assembly Version of this Bill:
A736
Current Committee:
Law Section:
Insurance
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3571, A2016, A2138
2009-2010: S6289, A3162, A9452

S812 - Bill Texts

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

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BILL NUMBER:S812

TITLE OF BILL: An act in relation to directing the superintendent of
financial services 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 financial services 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 financial services 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 financial services 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
S.3571 2011: 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
________________________________________________________________________

                                   812

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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 financial services
  to conduct a study and issue a report regarding title insurance premi-
  um 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  financial services is hereby
authorized and directed to conduct a comprehensive study on title insur-
ance premium rates.
  2. Within one year of the effective date of this act  the  superinten-
dent  of financial services shall issue a report to the governor and the
legislature. Such study and report shall include but shall not be limit-
ed 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.
                                                           LBD02922-01-3

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