Senate Bill S7744

                                 BILL NUMBER:  S7744

 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 :

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.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATION :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.