S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8467
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 16, 2017
                                ___________
 
 Introduced by M. of A. CAHILL -- read once and referred to the Committee
   on Insurance
 
 AN  ACT  to  amend  the insurance law, in relation to the prohibition of
   commissions and rebates
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subsection  (d)  of section 6409 of the insurance law, as
 amended by section 17 of part V of chapter 57 of the laws  of  2014,  is
 amended to read as follows:
   (d)  (1) No title insurance corporation, title insurance agent, or any
 other person acting for or on behalf of the title insurance  corporation
 or  title  insurance agent, shall offer or make, directly or indirectly,
 any rebate of any portion of the fee, premium or charge made, or pay  or
 give  to any applicant, or to any person, firm, or corporation acting as
 agent, representative, attorney, or employee of the owner, lessee, mort-
 gagee or the prospective owner, lessee, or mortgagee of the real proper-
 ty or any interest therein, either directly or indirectly,  any  commis-
 sion,  any  part  of  its fees or charges, or any other consideration or
 valuable thing, as an inducement for, or as compensation for, any  title
 insurance  business,  nor  shall  any applicant, or any person, firm, or
 corporation acting as agent, representative, attorney,  or  employee  of
 the  owner,  lessee,  mortgagee  or of the prospective owner, lessee, or
 mortgagee of the real property or anyone having  any  interest  in  real
 property  knowingly  receive, directly or indirectly, any such rebate or
 other consideration or valuable thing. Any person or entity who violates
 this section shall be subject to a penalty of [(1)]  (I)  five  thousand
 dollars; or [(2)] (II) up to ten times the amount of any compensation or
 rebate  received or paid in the case of a title insurance corporation or
 title insurance agent; or [(3)] (III) up to five times the amount of any
 compensation or rebate received or paid; or [(4)] (IV) in the case of an
 applicant for title insurance that covers real  property  used  predomi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13184-01-7

 A. 8467                             2
 
 nantly  for  residential  purposes,  and which consists of not more than
 four dwelling units, other than hotels and  motels,  an  amount  not  to
 exceed  the compensation or rebate received or paid, when such applicant
 knew  that it was a violation to receive such rebate, or other consider-
 ation or valuable thing; provided, however, if such  applicant  did  not
 know  that it was a violation to receive such rebate, or other consider-
 ation or valuable thing, he or she shall not be assessed a penalty under
 this [subdivision] SUBSECTION.
   (2) FOR THE PURPOSES OF THIS SUBSECTION, "AN  INDUCEMENT  FOR,  OR  AS
 COMPENSATION  FOR,  ANY  TITLE  INSURANCE BUSINESS" SHALL MEAN A BENEFIT
 GIVEN WITH THE INTENTION TO COMPENSATE OR OFFER  COMPENSATION,  DIRECTLY
 OR  INDIRECTLY, FOR ANY PAST OR PRESENT PLACEMENT FOR A PARTICULAR PIECE
 OF TITLE INSURANCE BUSINESS TO ANY APPLICANT, OR PERSON, FIRM, OR CORPO-
 RATION ACTING AS AGENT, REPRESENTATIVE, ATTORNEY,  OR  EMPLOYEE  OF  THE
 OWNER,  LESSEE, MORTGAGEE OR THE PROSPECTIVE OWNER, LESSEE, OR MORTGAGEE
 OF THE REAL PROPERTY OR ANY INTEREST THEREIN. NOTHING CONTAINED IN PARA-
 GRAPH ONE OF THIS SUBSECTION TO THE CONTRARY SHALL  PROHIBIT  ANY  TITLE
 INSURANCE  CORPORATION  OR  TITLE  INSURANCE  AGENT, OR ANY OTHER PERSON
 ACTING FOR OR ON BEHALF OF THE  TITLE  INSURANCE  CORPORATION  OR  TITLE
 INSURANCE  AGENT,  FROM  UNDERTAKING  ANY  USUAL AND CUSTOMARY MARKETING
 ACTIVITY AIMED AT ACQUAINTING PRESENT AND PROSPECTIVE CUSTOMERS WITH THE
 ADVANTAGES OF USING A PARTICULAR TITLE INSURER OR TITLE INSURANCE  AGENT
 THAT  ARE NOT INTENDED FOR THE PURPOSE OF A REWARD FOR THE FUTURE PLACE-
 MENT OF, OR THE PAST PLACEMENT, OF A PARTICULAR PIECE OF TITLE INSURANCE
 BUSINESS.
   § 2. This act shall take effect immediately.