What's happening
This bill creates the Title Insurance Assessment Relief Act, adjusting how title insurance companies in New York are assessed based on premiums minus agent payments.
Why it matters
Reduces assessment costs for title insurance companies. by allowing them to subtract payments made to title agents from their premium totals, potentially lowering their overall financial burden to the state.
May lead to lower costs for consumers. if title insurance companies pass along some of these assessment savings, potentially making real estate transactions more affordable.
Aims to clarify and standardize the assessment calculation. for title insurers in New York, which could reduce administrative complexity and disputes over how assessments are determined.
Could affect state revenue from insurance assessments. , meaning policymakers and the public may want to weigh the benefits to insurers and consumers against possible reductions in funds available for regulatory oversight.
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Who cares
Headline styles
Change Title Insurer Assessments
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred 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.
Change Title Insurance Assessments
In Assembly Committee · Insurance · Sponsor Kevin Cahill
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3509
2019-2020 Regular Sessions
IN SENATE
February 8, 2019
Introduced by Sens. BRESLIN, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT in relation to the creation of the title insurance assessment relief act
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Title insurance assessment relief act. Notwithstanding section 206 of the financial services law, title insurance corporations licensed under paragraph 18 of subsection (a) of section 1113 of the insurance law and domiciled in New York state shall be assessed on direct premiums written less amounts paid to or retained by title agents in this state during the calendar year ending December thirty-first immediately preceding the end of the fiscal year for which the assessment is made (less return premiums and considerations thereon) for policies or contracts of insurance covering title in this state the issuance of which policies or contracts requires a license from the superintendent of financial services.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02801-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act in relation to the creation of the title insur- ance assessment relief act
Purpose
To amend the law so that all New York-domiciled licensed title under- writers are assessed on the net premiums retained on policies issued for property located within the state of New York.
Summary of provisions
Section one amends the law to allow a title insurer domiciled in New York State to be assessed on direct premiums written less amounts paid to or retained by title agents in New York State during the calendar year immediately preceding the fiscal year for which the assessment is made
Section two sets forth the effective date.
Justification
Title insurers domiciled in New York State are subject to annual assess- ments pursuant to Section 206 of the Financial Services Law to cover operating expenses of the department solely attributable to regulating persons under the insurance law. This assessment is based on 100% of the gross premium of policies written by the title insurer, but the insurer generally retains only 15% of the premium; 85% of the premium is retained by the title agent. This legislation, if enacted, would afford relief to domesticated insurers while continuing to hold them responsi- ble for the premiums assessed by law and used for the operation of the Department of Financial Services.
Legislative history
S.3889 of 2017-18; S.2359 of 2015-16; S.7228 of 2014.
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.