11 CRR-NY 35.5NY-CRR
11 CRR-NY 35.5
11 CRR-NY 35.5
35.5 Referrals by affiliated persons and required disclosures.
(a) Except as provided in subdivision (c) of this section, an affiliated person that directly or indirectly refers an applicant for title insurance to a title insurance agent or title insurance corporation shall, at the time of making the referral, provide the following disclosures pursuant to Insurance Law section 2113(d) in a separate writing to the applicant, and shall obtain written acknowledgement of receipt from the applicant:
(1) whether the affiliated person has a financial or other interest in the title insurance agent or title insurance corporation and whether the affiliated person is likely to receive a financial or other benefit as a result of this referral;
(2) that the applicant is not required to use the services of the title insurance agent or title insurance corporation to which the applicant is being referred, and that the applicant may shop around to determine whether the applicant is receiving the best services and the best rate for the title services;
(3) that any compensation or other thing of value paid by the title insurance agent or title insurance corporation to the affiliated person is based on that person’s financial or other interest in the title insurance agent or title insurance corporation and is not related to the amount of title insurance business that person refers to the title insurance agent or title insurance corporation; and that the payment of such compensation or other thing of value does not violate Insurance Law sections 2324 or 6409 or, if applicable, RESPA;
(4) that the affiliated person is not required to refer a specified amount of title insurance business to the title insurance agent or title insurance corporation;
(5) the amount or value of any compensation or other thing of value that the affiliated person expects to receive in connection with the services to be provided by the title insurance agent or title insurance corporation to which the applicant is being referred; provided, however, that if the amount or value of any compensation to be disclosed is not known at the time that the disclosure is required, then the affiliated person shall:
(i) describe the circumstances that may determine the receipt and amount or value of the compensation; and
(ii) provide a reasonable estimate of the amount or value, which may be stated as a range; and
(6) whether the title insurance agent or title insurance corporation generates non-affiliated business from more than one source.
(b) Except as provided in subdivision (c) of this section, the title insurance agent or title insurance corporation to which a referral is made shall be responsible for ensuring that the applicant receives all disclosures that are required hereunder.
(c) A title insurance agent that represents an applicant in another capacity, including as an attorney, shall not be subject to the disclosure requirements set forth in subdivision (a) of this section, but shall advise the applicant that the applicant is not required to use the person as a title insurance agent.
11 CRR-NY 35.5
Current through July 31, 2021
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