The New York Assembly is considering a new definition of “an inducement for, or as compensation for, any title insurance business” as it relates to the prohibition against certain actions.
The bill, AB 1354, is being sponsored by Assembly member Kevin Cahill of Kingston, N.Y.
The bill amends section 6409(d) of the insurance law to add 6409(d)(2), which states, “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 to any applicant, or person, firm or corporation acting as an 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 paragraph 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 placement of, or the past placement, of a particular piece of title insurance business.”