Assembly Bill A374

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    374
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of A. CAHILL, FAHY, WEPRIN, RA, MONTESANO, TAYLOR --
   read once and referred to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to allowable expenses for
   title insurance corporations and title insurance agents

   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD01667-01-1

 A. 374                              2
 
 applicant for title insurance that covers real  property  used  predomi-
 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)  NOTHING  CONTAINED  IN  PARAGRAPH  ONE  OF THIS SUBSECTION TO THE
 CONTRARY SHALL PROHIBIT ANY TITLE INSURANCE CORPORATION OR TITLE  INSUR-
 ANCE  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 PLACEMENT OF, OR THE  PAST  PLACEMENT,  OF  A
 PARTICULAR  PIECE  OF  TITLE INSURANCE BUSINESS, INCLUDING THE FOLLOWING
 EXPRESSLY PERMITTED ACTIVITIES:
   (I) ADVERTISING OR MARKETING IN ANY PUBLICATION, EVENT  OR  MEDIA,  AT
 MARKET  RATES,  INCLUDING  SPONSORSHIPS,  ADVERTISING GIFTS, PROMOTIONAL
 ITEMS AND CONSUMABLES;
   (II) MEALS AND BEVERAGES WITH PRESENT OR PROSPECTIVE  CUSTOMERS  WHERE
 ONE  OR  MORE EMPLOYEES OR REPRESENTATIVES OF THE TITLE INSURANCE CORPO-
 RATION OR TITLE INSURANCE AGENT ARE PRESENT AND TITLE INSURANCE BUSINESS
 IS DISCUSSED;
   (III) CONTINUING LEGAL EDUCATION COURSE MATERIALS OR INSTRUCTION; AND
   (IV) CHARITABLE CONTRIBUTIONS IN  THE  NAME  OF  THE  TITLE  INSURANCE
 CORPORATION OR TITLE INSURANCE AGENT.
   NOTWITHSTANDING  THE  PROVISIONS OF THIS PARAGRAPH, NO TITLE INSURANCE
 CORPORATION OR TITLE INSURANCE AGENT, OR ANY OTHER PERSON ACTING FOR  OR
 ON  BEHALF  OF  A  TITLE  INSURANCE CORPORATION OR TITLE INSURANCE AGENT
 SHALL UNDERTAKE ANY EXPENSES FOR  PROVIDING  VACATIONS,  TRIPS,  TRAVEL,
 GIFTS, GIFT CARDS, GIFT CERTIFICATES OR OTHER THING OF SPECIFIC MONETARY
 VALUE TO ANY PRESENT AND PROSPECTIVE CUSTOMERS.
   § 2. This act shall take effect immediately.