What's happening
This bill clarifies allowable marketing activities for title insurance companies, permitting certain customary expenses but prohibiting gifts, trips, and similar inducements.
Why it matters
Clarifies boundaries for marketing by title insurance companies. The bill specifies which marketing activities are considered legitimate—such as advertising, sponsorships, meals during business discussions, continuing legal education, and charitable donations—so companies can confidently engage in standard outreach without fear of violating anti-inducement rules.
Prevents unfair competitive practices. By explicitly prohibiting gifts, trips, gift cards, and similar inducements, the bill helps ensure the playing field is level and prevents large firms from gaining an unfair advantage by “buying” business through lavish perks.
Reduces regulatory uncertainty and compliance risk. The new language provides clearer guidance to title insurance companies and agents regarding what is and isn’t allowed, potentially reducing costly legal disputes and regulatory penalties related to ambiguous interpretations of the law.
Protects consumers and real estate professionals from undue influence. By drawing a line between permissible marketing and prohibited inducements, the bill aims to maintain the integrity of title insurance transactions, ensuring that decisions are based on merit rather than incentives.
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Who cares
Headline styles
Limit Title Insurance Gifts
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to insurance
- Reported and committed to finance
- Print number 2929a
- Amend and recommit to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Title Insurance Gifts
In Senate Committee · Insurance · Sponsor Kevin Cahill
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2929--A
2019-2020 Regular Sessions
IN SENATE
January 30, 2019
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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 Assembly, 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, mortgagee or the prospective owner, lessee, or mortgagee of the real property or any interest therein, either directly or indirectly, any commission, 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06686-03-9
S. 2929--A 2
compensation or rebate received or paid; or [(4)] (iv) in the case of an applicant for title insurance that covers real property used predominantly 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 consideration or valuable thing; provided, however, if such applicant did not know that it was a violation to receive such rebate, or other consideration 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 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, 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 corporation 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to allowable expenses for title insurance corporations and title insurance agents
Purpose
This bill clarifies that an enumerated list of usual and customary marketing activity aimed at acquainting present and prospective custom- ers with the advantages of using a particular title insurance corpo- ration or title insurance agent does not constitute an "inducement" or "compensation" under the Section 6409(d) of the Insurance Law provided it is 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.
Summary of provisions
Section 1: This section adds a new subdivision to section 6409(d) of the Insurance Law, clarifying that an enumerated list of usual and customary marketing activity shall not be considered an "inducement" or "compen- sation" under this Section, unless it is given with the intention to directly or indirectly compensate a present or perspective client for any past or present placement of title insurance business.
Section 2: Provides that this bill shall take effect immediately.
Justification
In 2017, as part of proposed rulemaking to clarify and enforce Insurance Law Section 6409(d), the Department of Financial Services drafted regu- lations that deemed any marketing practices that conveyed a benefit onto a past or prospective client an illegal inducement or compensation "regardless of whether provided as a quid pro quo for specific busi- ness." This interpretation goes beyond the intended scope of the law, and seems to be an about face from previous guidance by the Office of General Counsel (OGC), which were requested by and relied upon by the title insurance industry, and which expressly required the presence of a "quid pro quo" in order to constitute an illegal inducement or compen- sation. See i.e. OGC Opinion No. 11-06-05 (June 21, 2011).
Because the title insurance industry does not engage in direct to consumer advertising, insurers and agents need to be able to market themselves and their services to their clients and their represen- tatives, including attorneys and other real estate professionals, and they should be able to do this in a way similar to others in the insur- ance industry and general economy, as long as there is no direct or indirect "quid pro quo" for the placement of a particular piece title insurance business. This bill clarifies that the common marketing activ- ity of title insurers and agents does not constitute an "inducement" or "compensation" absent a quid pro quo, and enumerates examples of such permitted customary marketing activity.
Legislative history
New bill.
Fiscal implications
None to the state.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.