S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6704
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 14, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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

 S. 6704                             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.